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Next Generation Network Solutions “PAETEC rises above the communications service provider pack” - Forrester Research COMMUNICATIONS SECUITY SECURITY BUSINESS CONTINUITY BUSINESS INTELLIGENCE MANAGED SERVICES FINANCING

PAETEC Value

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Page 1: PAETEC Value

Next Generation Network Solutions

“PAETEC rises above the communications service provider pack” - Forrester Research

COMMUNICATIONS

SECUITY

SECURITY BUSINESS CONTINUITY BUSINESS INTELLIGENCE MANAGED SERVICES FINANCING

Page 4: PAETEC Value

Company Overview

- Headquartered in Rochester, NY

- Founded 1998

- Evolution of an Industry Leader

- Key Mergers & Acquisitions

- NASDAQ: PAET

- 4,600+ Employees

- $2.2 Billion Revenues*

- Services 86 of Top 100 Metro Regions

- ISO 9002 Certified

- Largest CLEC in the US by Revenue

Page 6: PAETEC Value
Page 7: PAETEC Value

Account Stewardship Customer Service

Page 8: PAETEC Value

Unmatched Customer Service

3 fully redundant (24 X 7 X 365) Network Operation Centers

-Rochester NY, Charlotte NC & Cedar Rapids IA

Industry leading web portal with real time access to trouble ticketing system

265 highly trained NOC technicians

In 2010 86% of all incoming calls were answered by a live person in 20 seconds or less

Customer retention in excess of 99% (monthly average)

Network Operations Center - Charlotte, NC

Network Operations Center - Rochester, NY

Page 9: PAETEC Value

Core Values

Network Operations Center - Charlotte, NC

Network Operations Center - Rochester, NY

* Caring Culture* Caring Culture

* Personalized Solutions* Personalized Solutions

* Open Communication * Open Communication

* Unmatched Service * Unmatched Service

Page 10: PAETEC Value

Customer Satisfaction

2008 Customer Advisory Board Meeting

- Dedicated Account Team Approach • Provides multiple layers of support • Employee compensation based on customer retention and satisfaction*** • Escalation list provided • Provides direct liaison with PAETEC’s NOC

- Customer Experience • Quarterly performance reviews provided (Including a welcome

package meeting within 10 days of the first invoice)• Simplified Invoicing Structure• Industry leading online support tool via “PAETEC Online”• Customer retention rate in excess of 99%

Page 11: PAETEC Value

We Listen to Our Customers

- Discuss business challenges

- Build the foundation for PAETEC’s product and service investments through customer feedback

- Access PAETEC senior executives

- Network with peers

- Discuss Industry Trends & Concerns

Customer Advisory Board Program

Regional forums for knowledge sharing and relationship building between PAETEC and our customers

2008 Customer Advisory Board Meeting

“I have been a CAB member for the past four years and value the program completely. The LEGO Group truly benefits from the products, services, and actions that result from CABs.”

Joanne Zanetti,

LEGO Systems, Inc.

Page 12: PAETEC Value

Industry-Leading Customer Satisfaction

Net Promoter Score (NPS) Net Promoter Score (NPS) measures measures customer satisfactioncustomer satisfaction

PAETEC’s 2010 NPS is 19.8, an increase from our 2009 score of 18.8

PAETEC employees’ bonus depends on PAETEC employees’ bonus depends on constant improvement of our NPS score constant improvement of our NPS score

Data for non-PAETEC companies was gathered from the “Net Promoter Telecommunications Industry Report of 33 Telecommunications Companies – June 2010” completed by Satmetrix Systems.

0

PAETEC

19.8

-15

AT&T

Telecom NPS Benchmarks

-18

Verizon

-34

Qwest

Page 14: PAETEC Value

Products & Services Portfolio Personalized Solutions

2008 Customer Advisory Board Meeting

PAETEC’s strategic product marketing focuses on 6 major product categories:

Communications Solutions Communications Solutions

Security Solutions Security Solutions

Business Continuity Business Continuity

Managed Services SolutionsManaged Services Solutions

Business IntelligenceBusiness Intelligence

Financing Options Financing Options

Page 15: PAETEC Value

Core ProductsCore Products Value-Added ServicesValue-Added Services

DataData EquipmentEquipment ApplicationsApplications Data CenterData CenterVoiceVoice

CommunicationsCommunications All Data All Equipment All Voice

SecuritySecurity MPLS VPN

Hosted E-mail Security

Hosted Web Security

Network Firewall

Intrusion Detection & Prevention System (IDPS)

Network Engineering Consultation

Managed Fraud Protection

Managed Managed ServicesServices

Managed Router Support

Managed CPE Firewall

Network Firewall

Intrusion Detection & Prevention System (IDPS)

Colocation Services

Data Backup & Recovery

Dedicated Hosted Server

Shared Web Hosting

Hosted IP Telephony

Managed Fraud Protection

FinancingFinancing Equipment for Services

Equipment Rental

Software for Services

Business Business ContinuityContinuity

MPLS VPN Fixed Wireless Private Line

Network Engineering Consultation

Hardware Maintenance Support

Colocation Services

Data Backup & Recovery

Dedicated Hosted Server

Dynamic IP Direct Trunk Overflow

Network Diversity Engineering

Toll-Free RoutingConsultation

Advanced Toll-Free

Hosted Broadcast Notification

BusinessBusinessIntelligenceIntelligence

Managed Fraud Protection

Hosted Broadcast Notification

PINNACLE Communications Management Suite

Data Center

PINNACLE Communications Management Suite

sApplications

SolutionsSolutions

PAETEC SolutionsPAETEC Solutions

Page 16: PAETEC Value

Core Products Personalized Solutions

2008 Customer Advisory Board Meeting

• Voice - Local/Long Distance - Toll Free - SIP Trunking

• Data - Dedicated Internet - MPLS - D ata C e nte r S olutions

• Differentiators - Pinnacle Software Moving into the cloud

- Cloud Based Solutions - Quagga Family of Products - PBX Centralization (Virtual Telephone Number VTN) - 3G/4G Wireless MPLS Backup (Managed) - Equipment for Services Program

Page 17: PAETEC Value

Strategic Investments- Recent Acquisitions Personalized Solutions

One of the nations largest Fiber footprints. 37,000Fiber route miles.Custom network solutions from 10Mb to 10GbSonet/Wavelength& Ethernet

World-class systems integrator and top partner for Avaya on the West Coast, with expertise in IP-based voice and video systems for medium and large businesses.

Among the largest full service providers of advance communications solutions servicing enterprise customers. Avaya Platinum partner specializing in managed services

Uses mobile applications on a smart phone to simplify the way people communicate with each other.

Page 18: PAETEC Value

Equipment Partners Personalized Solutions

2008 Customer Advisory Board Meeting