William McKinneyDirector, Solutions Management

January 31, 2001

TelecommunicationsBilling Strategy

Billing is Customer Care

OSS Component Penetration

0%10%20%30%40%50%60%70%80%90%

100%

Billing OrderMgmt

CustomerCare

TroubleMgmt

NetworkMgmt

Source: Business Edge Solutions

The Changing Telecom Marketplace

• Deregulation• Emerging Market

Segments• Competitive Pressure

• Mergers andAcquisitions

• Bill and ServiceConvergence

• New TechnologyCapabilities

Areas of Revenue Loss

Source: PricewaterhouseCoopers

Order Entryand Provisioning

Billing NetworkOperations

Sales andMarketing

Other

The Five Segments of Billing

BillingService Bureau

CICService Bureau

CC&BConsulting

CC&BIntegration

CC&BPlatform

BillingService Bureau

CICService Bureau

CC&BConsulting

CC&BIntegration

CC&B Platform

Billing Competition

• Convergys• Alltel• EDS• Amdocs• Spectrum Telecorp• Sema Group• CSG Systems

• Convergys

• Convergys• Portal• Keanan (Lucent)• LHS (Sema Group)• Daleen• CSG Systems• Amdocs• Saville Systems (ACD)

• KPMG• Anderson

Consulting• Pricewaterhouse

Coopers• Cap Gemeni E & Y• EDS• Deliotte

Consulting• IBM• Telcordia

• KPMG• Anderson

Consulting• Pricewaterhouse

Coopers• Cap Gemeni E & Y• EDS• Deliotte

Consulting• Sema Group

TeleTech Billing SWOT

Strengths• Service Bureau Culture• Strong CIC Presence• Existing Telecom Clients• Data Center Infrastructure

Opportunities• Margin Growth• Increased “Stickiness”• Top-line Growth• Increased Multiple

Threats• Risk of Current Accounts• Investment w/o Return• Loss of Focus• Slow Adoption Rate

Weaknesses• No Billing Experience• No Billing IP or Process• Not Viewed as Credible

Multiple EnhancementClosing Price 01/24/01

TeleTech P/E = 17 Convergys P/E = 40

Price/Share

Earnings/Share

$16 1/16

$0.95

$49 9/16

$1.23

TeleTech’s Billing Strategy

TeleTech’s Billing Strategy

BillingService Bureau

CICService Bureau

CC&BConsulting

CC&BIntegration

CC&BPlatform

TeleTech’s Billing Strategy

BillingService Bureau

CICService Bureau

CC&BConsulting

CC&BIntegration

CC&BPlatform

TeleTech’s Billing Strategy

BillingService Bureau

CICService Bureau

CC&BConsulting

CC&BIntegration

CC&BPlatform

TeleTech’s Billing Strategy

BillingService Bureau

CICService Bureau

CC&BConsulting

CC&BIntegration

CC&BPlatform

TeleTech’s Billing Strategy

BillingService Bureau

CICService Bureau

CC&BConsulting

CC&BIntegration

CC&BPlatform

Near-term Strategy

Rationale• Quickly Go to Market• Build Credibility• Create New CC Opportunities

Deliverables• Alliance Management• Concept Collateral• Engagement Process

Long-term Billing Target Markets

CableVideoInternetVoice

WirelessMobile TelephonyMobile PrepaidPaging SatelliteWireless Data / IPWireless Local Loop

WirelineLocalLong DistanceDedicated ServicesIP Services

LAAP EUNA

=Primary Market =Secondary Market

Long-term Billing Target Customers

XLegacy

Tier 1

Competitive

Incumbent

Tier 2

Opportunistic

Tier 3

Billing and TeleTech’s Strategy

Questions and Answers

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