1. INNOVATION IN OUTSOURCING
2011 eSEMINAR SERIES
March 24, 2011
Audio: +1 (323) 417-4600, Access code 280-431-831
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© 2011 Alsbridge. All rights reserved.
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2. Strategy Cost
ADM
Selection Price
Negotiation Performance
Applications
Business Process
Governance Terms & Conditions
IT Infrastructur
Infrastructure
e
Network
Network
Hardware /
Hardware / Software
Software
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© 2011 Alsbridge. All rights reserved.
Contains proprietary and confidential information. Audio: +1 (323) 417-4600 Access code 280-431-831

3. Speaker Introduction
Dieter Thompson, President of Alsbridge Network Services Group
 Dieter Thompson is the founder and President of NSG, a service line
of Alsbridge, Inc.
 Dieter has been a major force in the telecommunications industry
since 1988. During his 22 year career, he has held numerous
leadership positions and launched multiple businesses that have
helped shape the industry, create jobs and improve processes.
 In 2002, Dieter launched Thompson Advisory Group (TAG) which
helped corporations achieve greater IT and telecom value i.e. SAVE
MONEY.
 TAG, now Alsbridge Network Services Group, was acquired by
Alsbridge in 2009. Today the company operates as a service line of
Alsbridge, a global leader in outsourcing, shared services and
optimization.
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© 2011 Alsbridge. All rights reserved.
Contains proprietary and confidential information. Audio: +1 (323) 417-4600 Access code 280-431-831

4. eSeminar Agenda
 What is the Wire Line Market?
 Current Macro Industry Overview - Wire Line
 Future Macro Industry Trends
 Pricing Examples
 Pricing Trends
 International Markets
 Leverage and Negotiating Strategies
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© 2011 Alsbridge. All rights reserved.
Contains proprietary and confidential information. Audio: +1 (323) 417-4600 Access code 280-431-831

5. What is the Wire Line Market?
 What is the wire line market?
• Tier 1 = AT&T and VZB
• Do not accept Tier 2 label…EMERGING PROVIDERS
 XO, PAETEC, Global Crossing, Level 3, TWT
• Qwest = Tier 1.5?
• Sprint = Wireless?
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6. Current Macro Industry Overview – Wire line
 Consolidation of providers is continuing
 Financial stability has returned to the industry
 Bandwidth consumption is growing exponentially (Ethernet)
 2011 Enterprise IT investment expected to grow
 Integration issues are plaguing the consolidated companies
 Tier 1 providers fighting on many fronts
 Tier 1 retention of QFTE’s and delivery issues getting worse
 Tier 1 billing, service support, stewardship getting worse
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© 2011 Alsbridge. All rights reserved.
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7. Current Macro Industry Overview (cont’d)
 Huge gap in the “emerging provider” space trying to be filled.
• Enterprise market should be embrace change and accept entrants in the space
• We like: XO, Global Crossing, Qwest, Granite, Level 3, Paetec, TWT
 Look for niche data services providers like Virtella, US Signal, Cogent, New
Edge, etc…
 IT organizations struggling internally with fully meshed IP global strategies
 VoIP, SIP and next generation convergence is aggressively being studied
and slowly being adopted
 Integrators are becoming more relevant to the Network Tower
 Marketplace is still very volatile with no clear winner
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8. Future Macro Industry Trends
 More of the same for 2011
 Tier 1 providers will continue to be difficult on T&C’s
 Unit price points will continue to fall
 Delta between price point and averages will continue to
increase
 Tier 1 providers will continue to make market based
concessions harder to obtain
 More layoffs and restructuring in the Tier 1 space
 Providers looking towards outsourcing core functions
 Look for a leader to appear in the emerging provider space
Page 8
© 2011 Alsbridge. All rights reserved.
Contains proprietary and confidential information. Audio: +1 (323) 417-4600 Access code 280-431-831

9. Audience Poll #1
 On average, what is the annual decrease in cost we achieve the first
time we renegotiate a contract?
• 0-10 %
• 10-20%
• 20-30%
• 30-40%
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10. Telecom Pricing Trends
 The Providers have seen dramatic Price Point reductions over the
past five years:
2005 APP 2007 APP % Decline 2009 APP % Decline
Domestic TDM Voice $0.0231 $0.0166 28.4% $0.0115 30.5%
Inter TDM Voice $0.0885 $0.0261 49.7% $0.0216 51.6%
Domestic Data $554.96 $348.90 37.1% $177.81 48.9%
 NSG forecasts these type of “Price Point” declines to continue in
2011
 Continued growth between Price Point and Averages
 Legacy Local has been the only service offering the ILEC’s stability,
however displacement, SIP and wireless are beginning to pressure
pricing
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© 2011 Alsbridge. All rights reserved.
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11. MPLS Port Price Trending
Interstate Direct Dial/Toll Free Dedicated Voice
$0.0325
$0.0275
$0.0225
$0.0175
$0.0125
$0.0075
Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10
Contract Rate --- Average Price Trend --- Price Point Trend
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© 2011 Alsbridge. All rights reserved.
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12. Voice Pricing Sample by Commitment Level
Domestic Dedicated Internet DS3
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10
Contract Rate --- Average Price Trend --- Price Point Trend
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13. Historical and Future Pricing Trends
Domestic DS1 Access 6-10 Miles
$600
$500
$400
$300
$200
$100
$0
Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10
Contract Rate --- Average Price Trend --- Price Point Trend
Page 13
© 2011 Alsbridge. All rights reserved.
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14. Audience Poll #2
 Is it likely that your current contract has an annual rate review
provision?
• Yes
• No
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© 2011 Alsbridge. All rights reserved.
Contains proprietary and confidential information. Audio: +1 (323) 417-4600 Access code 280-431-831

15. International Markets
 Rapidly growing area of focus for enterprise clients
 Corporate IT groups growing need for fully meshed IP
networks and control
 Foreign to foreign voice still hard to get
 Not typically a good logical break point, Domestic /
International for dual vendor strategy
 International based carriers, BT, C&W, Colt, etc. not
aggressively pushing in US market
 Lots of price compression opportunities
Page 15
© 2011 Alsbridge. All rights reserved.
Contains proprietary and confidential information. Audio: +1 (323) 417-4600 Access code 280-431-831

16. Leverage and Negotiating Strategies
 Leverage is everything: term, commitment, relationship
 Multiple vendor RFP process
 Start early, use an advisor
 Pursue an “active” secondary strategy
 Think outside the “usual provider” box
 Be very cautious of “The Channel”
 Contract terms and structure are critical
 Disconnect something…
Page 16
© 2011 Alsbridge. All rights reserved.
Contains proprietary and confidential information. Audio: +1 (323) 417-4600 Access code 280-431-831

17. Americas
Europe
Dieter Thompson
President of Alsbridge Network Services Group
Email: dieter.thompson@alsbridge.com
Alsbridge Americas
3535 Travis St., Suite 105
Dallas, TX 75204
United States of America
Tel: +1 214-696-6410
Fax: +1 214-239-0698
www.Alsbridge.com
Page 17
© 2011 Alsbridge. All rights reserved.
Contains proprietary and confidential information. Audio: +1 (323) 417-4600 Access code 280-431-831