tw telecom

September 2009

Executive Overview

We aretw telecom

An obsession with delivering exceptional customer care.

Instead of bureaucracy and runaround, you get committed people who listen carefully, respond quickly and make things happen.

Maybe that’s why over 80% of our customers say they’d recommend us with confidence—a remarkably high number for any industry, let alone ours.

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A Unique Set of Network Assets

One of the Top 3 Metro Ethernet Providers for U.S. BusinessesNational footprint interconnected with fiber and 10 Gig IP backbone

One of the Top 3 Metro Ethernet Providers for U.S. BusinessesNational footprint interconnected with fiber and 10 Gig IP backbone

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A Fully Differentiated Asset

• Massive Local Optical Network

• Connecting nearly 10,000 enterprise buildings

• Largest competitive fiber based provider (lit buildings)

• True fiber based alternative to the incumbent

• Managed Quality of Service• Robust portfolio of services

Strategic Direction & Corporate History

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NationalMulti-City

Multi-Location

RegionalMulti-City

Multi-Location

City WideMulti-Location

SingleSite

Our Customer Focus

Connectivity

ManagedSolutions

Reach ApplicationsCustomers

Fortune1000

Large> 500 Seats

Medium< 500 Seats

SME< 100 Seats

Complex ManagedSolutions

Storage, DistributedData Centers, DR/BC,

Imaging, EnterpriseApps (CRM, ERP),

VPNEnhanced

ConnectivityMedical Image,

VoIP VPNSimple

Package

tw telecom’s“Sweet Spot”

Bringing unique value to the enterprise

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tw telecom

Customer Strategy

• Medium & large enterprises in target vertical markets such as healthcare, finance, hospitality, higher education and manufacturing

• Carriers, wireless providers, Internet and Content service providers

• Government – Federal, State and Local entities

• Systems Integrators needing robust data services

Growth Strategy

• Invest in our networks, our products, our systems and our people

• Create powerful portfolio of innovative solutions

• Leading product portfolio, with a differentiated local fiber infrastructure, delivering a robust MPLS IP network

• Differentiated and unique customer experience which customers value

• Solutions approach helping customers win

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tw telecom – A Corporate History

1993 1996 1998 2000 2001 2003 2006

Time Warner Communications Formed as a JV between U S

WEST and Time Warner Cable to deliver residential cable

telephony(April 1993)

Time Warner Communications renamed

Time Warner Telecom

Larissa Herda named President and CEO

(July 1998)

Time Warner Telecom completes purchase of GST

Communications, expands into 15 new markets(January 2001)

Time Warner Telecom announces expansion into 5 new markets - Minneapolis, Chicago, Atlanta,

Columbia, Denver(May 2000)

Time Warner Telecom completes over 30 network

expansions, increasing market footprint to 44 Markets

(2003 through 2006)

Time Warner Telecom separates from Time

Warner Cable(July 1998)

Time Warner Telecom acquires Xspedius

Communications, expands into 31 new markets

(October 2006)

2008

Time Warner Telecom becomes tw telecom

(July 1, 2008)

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Critical Differentiators

• We strive for world class customer care• Local management – sales & operations, coupled with 2

national operations centers create a unique coverage model

• We operate our own fiber network• Over 70% within the metro• Ability to construct unique footprint, scale bandwidth, deliver

robust array of network services

• We offer a unique set of products and services• Industry leadership position in Ethernet Services – metro

and wide area

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My Portal – Transactional Services

• Comprehensive services “dashboard”• Allows customers to track and manage ongoing business with tw telecom

• On-Line access to variety of activities• View Invoices, Pay Bills, Track Orders, Manage Circuit Inventory, Initiate

and Manage Trouble Tickets• Delivers proactive level of customer care to facilitate a better service

experience

TW TELECOM

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My Portal - Performance Portal• Network performance

data delivered graphically to highlight:

• Network bandwidth utilization

• Quality of network services

• Enabling applications management

• Compliments existing enterprise network management infrastructure to improve total service management

• Circuit by circuit level detail for Ethernet, MPLS IP VPN, Internet Access services

• Network performance data delivered graphically to highlight:

• Network bandwidth utilization

• Quality of network services

• Enabling applications management

• Compliments existing enterprise network management infrastructure to improve total service management

• Circuit by circuit level detail for Ethernet, MPLS IP VPN, Internet Access services

Product Portfolio

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Products and Services Strategy

Voice & DataIntegrated Access

VoIPBusiness

Class

StorageTransport

Security & IPVPN Services

Managed Services - 24x7x365 Monitoring & MaintenanceManaged Services - 24x7x365 Monitoring & Maintenance

DDos MitigationAnti-VirusAnti-Spam

UnifiedMessaging

Transport & WavelengthsDS-1, DS-3, OC-3, OC-12, OC-48, OC-192

Switched ServicesDigital Trunks, Primary Rate Interface, LD, 8XX Tandem

IP ServicesInternet Access to 1 Gig

ERP CRM Storage Supply Chain

NLANMetro

Ethernet

FoundationalNetworkServices

ManagedBundledServices

ManagedApplications

PartnerOpportunities

Available Today

Planned or In Progress

Extended NLAN (WAN Service)

Co-location Infrastructure and Services

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Metro Network Architecture

Core Fiber Backbone< 256 Strands

Distribution Rings< 24 Strands

DWDM System32 – 64 Waves

Up to 10G

LEC Office

Carrier Hotel/POPEnd User Bldg

MSPPSONET ADM

VoiceDS-nOC-nEthernetInternet

tw telecom C.O.

MSPPSONET ADM

MSPPSONET ADMType II

VoiceInternetDS-n

Class 5DCS3/1

VoIPMedia

Gateway

Next GenIntegrated

Access

MSPPSONET ADM

EthernetSwitch

EdgeIP

Routers

Core IPRouters

DWDM

PSTN

TWTCSS7 Network

DS-nOC-n

24 x 7 Monitoring/Maintenance, NEBs-3, UPS, Diesel Generator, etc.

IPBackbone

Up to OC-192

End User Bldg

VoiceDS-nOC-nEthernetInternet

MSPPSONET ADM

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MPLS Service Class – Definition

Product Portfolio

Metro Ethernet Services

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Service portfolio supports wide range of enterprise applications & requirements • Internet Access, Voice over IP, National Ethernet, Data Center Storage• Scalable bandwidth from 1 Mb to 10 Gig• Ethernet over Copper facilities for cost effective branch office connectivity

Metro Ethernet Services Portfolio

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Native LAN Services Overview

• Managed Metro & Long Haul Ethernet Transport Service• Point-to-Point, Point-to-Multipoint, Multipoint

• Suite of Services Serves Broad Customer Set• Customer Direct• Integrated Native LAN (I-LAN @ sub 10 Mbps)• Switched Native LAN• Elite Native LAN (Ethernet over SONET)• Extended Native LAN (VPLS) & Regional Native LAN (Waves)

• Supports 1 to 10 Megabits to 10 Gigabits• Variety of Tagging Implementations to Meet Customer Demand

for Networking Scalability• Copper based solutions for expanded reach to small, branch offices

and highly distributed enterprises

Product Portfolio

IP VPN

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IP Backbone Value Summary

• National Footprint (75 Markets)• OC-192 (10 Gb/s) backbone• Diverse / Redundant Network Connectivity from Network

Backbone to Customer Premise• POS layers IP routing onto inherent fault tolerance of

SONET• MPLS used within the core increases performance and

provides more granular TE• 60% utilization target for backbone links and connections.• “Best of Breed” infrastructure (Juniper, Cisco, Extreme)

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IP Network Services

Variety of Connectivity - DS-1 to Gigabit Ethernet• T1 (1.5 Mbps), NxT1 – Non-bonded and bonded service (3 Mbps to 6 Mbps)• T3 (45 Mbps) – Available in Fractional and Burstable T3 bandwidth levels• OC-n (155, 622 Mbps) – Available in Fractional and Burstable bandwidth

levels• Ethernet – Available in Fractional and Burstable

• From 2 Mbps to 1,000 Mbps bandwidth levels

Robust Service Suite• Dedicated, Switched Solution options• 24x7 support, local and national• Service Level Commitments

• Primary/secondary DNS/ IP Addressing/ BGP• Bandwidth Performance reports via web

tw telecom one of the 10 most interconnected IP

networks Worldwide

tw telecom one of the 10 most interconnected IP

networks Worldwide

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tw telecom VPN Solutions

• MPLS Standards Based• RFC 2547 Compliance

• Fully Meshed Architecture• Entirely Scalable

• TDM - DS-1 to OC-12 (622 Mbps)• Ethernet to Gigabit (1,000 Mbps) Speeds

• Wide Applications Support• 5 Classes of Service supporting Best

Effort to Latency Sensitive Voice, Video

• Compliments Ethernet WAN (City-to-City) Solutions

• Business Class Capabilities• Branch Office Connectivity• Multimedia Support• VoIP

Product Portfolio

Managed Services

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Managed Services

• Service provides full ordering, provisioning, maintenance and management of customer edge router equipment

• Delivered in conjunction with tw telecom’s data service portfolio – Metro and National Ethernet, Internet Access, MPLS IP VPN

• Foundational capability for ongoing converged applications networks• To deliver Internal Data, Internet Access, Voice

• Service provides full ordering, provisioning, maintenance and management of customer edge router equipment

• Delivered in conjunction with tw telecom’s data service portfolio – Metro and National Ethernet, Internet Access, MPLS IP VPN

• Foundational capability for ongoing converged applications networks• To deliver Internal Data, Internet Access, Voice

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Managed Security Services (DDoS Mitigation)

DDoS Mitigation Service

• Available in two flavors:• “Clean-bandwidth” via a combination of

‘learned’ traffic behaviors & alarmed customer defined thresholds for an entire circuit

• “Clean-IPs” via a combination of ‘learned’ traffic behaviors & alarmed customer defined thresholds for a specified IP Address

• Adapts to a dynamic data environment• False positives eliminated through ‘attack verification’ by TWTC’s Security Operations Center

• Attacks blocked closest to origination of attack as technically feasible (furthest from the customer premise)

Included Features:

• Comprehensive Security Consultation

• Installation of service (non-intrusive)

• Proactive monitoring with customer confirmation and mitigation of attack

• Dedicated Team of Security Professionals

• Policy Change Management• Reporting Portal providing detailed

and executive service reports• Service Level Agreements

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Managed Storage Transport

Managed StorageTransport Service

• Streamline the network• Collapse multiple private lines onto

single wavelength system• Native connections eliminate need for

expensive protocol conversion devices• On-Demand Networking with 99.999%+

availability• Managed 24 x 7 x 365

• Support for:• ESCON, FICON, Fiber Channel,

Ethernet• IBM, EMC Certified Applications

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Co-location ServicesLocalized Disaster Recovery &

Business Continuity Strategy

Co-location services include:• Dedicated Internet Access• Storage Transport• Private Line Transport• IP VPN• Native LAN solutions • Local dial-tone• Business continuity• Hardened / central office facility

• Communications• Power (Generator & UPS)• Security• Fire Detection / Suppression• Environment / HVAC

tw telecom Customer Site and Co-Location Cabinet

tw telecom Customer Site and Co-Location Cabinet

Optical & IP NetworkOptical & IP Network

tw telecom co-location sitetw telecom co-location site

Product Portfolio

Voice over IP

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VoIP – State of the Industry

VoIP is poised to be the single largest telephony initiative in decades• A technology for sending telephone calls over data networks

instead of traditional telephone networks• VoIP brings reduced access costs, simplified network

management and a new world of service opportunities

VoIP Marketplace Activity

• Technology replacement delivering lower cost infrastructure

• Long Distance Transport• Select New Services

Service Provider

• “POTS” Substitution• Technology leverage

supporting competitive attack strategies

• New entrants• Cable companies

Residential

• Convergence driving cost savings

• Single wire, Branch office connectivity, MAC control, Toll avoidance

• Intranet centric solutions• “VPN” implementations

dependant on best effort IP connectivity

Enterprise

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Our VoIP Product Strategy

Rapidly develop and implement new services that create new and incremental sources of revenue

• Cap Legacy Switching Infrastructure – Grow Next-Gen Capabilities• Implemented Traditional Services Driving New Revenue• Implement Value Added Services, Creating Customer Loyalty

Packet/IP Infrastructure Gateway End User

Convergence Value Added ApplicationsLower Cost Voice

Digital TrunksPRIsLong DistanceDisaster RecoveryInternational TerminationCalling Cards

IP TrunksVoice VPN (Site-to-Site)VoIP Virtual Number ServiceVoIP “Features” to Digital PBXsVoIP Network PeeringNext-Gen IAD

Current Capabilities Future Opportunities

Unified MessagingMultimedia Conferencing Hosted TelephonyDistributed Call CenterMobilityIM, Presence ManagementWiFi IntegrationHD Voice

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Convergence

> 100% Bandwidth Increase

20 – 30% Savings on Monthly Spend

Summary

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tw telecom

• tw telecom’s 15 year Track Record of Success Means…

• Financial Strength to Grow • Product and Service Innovation

• Industry Leading Data & IP Services• Metro Ethernet, IP Networks, VoIP

• Broad Fiber Optic Reach

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Thank You