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“Net2Phone is in a position to help the cable companies speed up their time to market in challenging incumbent local-exchange carriers." -- Goldman Sachs Equity Research, Summary, May 2003 Learn About the Cable Operator Benefits of the Net2Phone End-to-End Solution NASDAQ:NTOP • 520 Broad Street, Newark, New Jersey 07102 • (973) 438-3075 • [email protected] • http://cable.net2phone.com

Learn About the Cable Operator Benefits of the Net2Phone ...web.net2phone.com/cable/docs/cable_telephony_exec_summary.pdf · to boost top line revenues with ... Bringing seven years

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“Net2Phone is in a position to help the cable companiesspeed up their time to market in challenging incumbentlocal-exchange carriers."

-- Goldman Sachs Equity Research, Summary, May 2003

Learn About the Cable Operator Benefits of the Net2Phone End-to-End Solution

NASDAQ:NTOP • 520 Broad Street, Newark, New Jersey 07102 • (973) 438-3075 • [email protected] • http://cable.net2phone.com

NASDAQ:NTOP • 520 Broad Street, Newark, New Jersey 07102 • (973) 438-3075 • [email protected] • http://cable.net2phone.com

Cable Telephony Service Offer

Net2Phone's Cable Telephony Solution conforms to the CableLabs' PacketCable standards and enables cableoperators to offer competitively priced local and long distance telephony services to their subscribers. The solution is comprised of the following components:

Planning and Deployment

> Network and Systems Engineering > Business Process Development > IP Interconnects, Directory Assistance Plan, and 911

Integration Plan > Billing and Provisioning Integration > Systems Deployment: Softswitch (CMS) • Gateways • Media

Server • QoS Elements • IP Interconnects (switches, routers)

Call Management Server Platform

> Call Agent and Signaling > Announcement Server > CLASS 5 Feature Support > Voice mail, 611, and other applications > Trunking Gateways (universal telephony calling on or off the

cable network)

Real Time Service Assurance Platform (CVOSS)

> Network Management: alarms • remote administration •fault management • network element management

> Service Management: subscriber data management •Record Keeping Server • billing

> 24x7 Network Operation Center: Methods & Procedures •Tier 2 through 4 support • trouble ticketing • Service LevelAgreement management

Telecommunications Administration

> Infrastructure Management: Telephone numbermanagement • Analog • IP Circuit provisioning

> Emergency and Support Services: 911 • CALEA • otherservices

> Enabling Operator Services

Net2Phone leverages the PacketCable architecture to deliver a standards-compliant, end-to-endtelecommunications solution for the MSO industry, including the Net2Phone comprehensive real-time serviceassurance platform - Cable Voice OSS (CVOSS) and Record Keeping Server (RKS).

Net2Phone PacketCable Overlay

Many cable operators understand the strategic imperatives of a telephony offer, but are willing to defer a cable telephony rollout fora variety of reasons: either financial, operational, or technical. Net2Phone established the Cable Telephony Division in order todevelop a PacketCable compliant telephony solution that addresses these barriers by providing operators with a hosted cabletelephony solution that is financially and operationally more attractive than building the capability on their own. With Net2Phone'sleadership position in VoIP technology and wealth of telecommunications management experience, cable operators have a reliable,scalable, and more cost effective alternative to building their own solution.

> Reduce financial risk while enhancing revenue growthPartnering with Net2Phone reduces the operator's capitalrequirements for cable telephony, while still empowering themto boost top line revenues with a telephony offer. Net2Phone'soutsourced solution also enables the operator to reduceoperating expenses and overhead for cable telephony,transferring that responsibility to Net2Phone.

> Provide a flexible business approach that allows anoperator to pay over the lifetime of the subscriberRecognizing that each operator has different strategic andfinancial objectives, Net2Phone works with each operator todevelop their own business case and propose a cabletelephony solution to meet their financial and strategic targets.

> Accelerate speed-to-market by 12 months*Working with Net2Phone, operators have a telephony partnerwho will assist them with the design and deployment of thetelecommunications network, the development of specificmethods & procedures, training of personnel to supporttelephony and the development and management ofinterconnect facilities. Net2Phone has established strongworking relationships with the vendors supplying the variousstandards compliant network elements. This eliminates theneed for operators to perform extended technical trials sincethe outsourced end-to-end solution already incorporatesPacketCable compliant standards and tested best-of-breednetwork components. Futhermore, Net2Phone will integrate(technically and procedurally) key features and capabilitiessuch as the operator's billing and provisioning elements.Operators can be assured that Net2Phone is proactivelyworking with these vendors to test future functionality andinteroperability issues as they arise.

> Create a bridge to future applicationsBecause of the distributed architecture of Voice over IP,Net2Phone can support a residential telephony service todaywhile providing the flexibility to add future applications that tapthe potential of converged voice, video and data withoutrequiring material upgrades to the voice platform.

> Leverage Net2Phone's expertiseBringing seven years of experience in a seven-year industry,Net2Phone has managed more than five billion minutes ofVoice over IP traffic globally. With QoS infrastructure thatproactively monitors, diagnoses and troubleshoots aworldwide IP network, Net2Phone's 24/7 network operationscenter incorporates innovative IP technologies that surpassthe quality of traditional network operations while enablingintegration of IP to improve and update existing legacysystems.

* Time to market advantage based on existing operator experience. Timeadvantage could vary based on requirements and circumstances of eachoperator.

> Reduce operational and technical risk associated withdeveloping and operating a cable telephony serviceThe operator has access to Net2Phone's real time serviceassurance platform (CVOSS - Cable Voice OSS), which is afully automated, end-to-end management suite thatincorporates monitoring, diagnosis and trouble-shootingelements across the local HFC network, Net2Phone's global IPnetwork, and the PSTN. Through this platform, an operatorcan monitor many network, traffic and Quality of ServiceMetrics. The table below outlines the standard quality ofservice and operating metrics captured and assessed by theNet2Phone solution in order to meet the operator's high levelsof voice quality, service availability, and operationalperformance monitoring.

Quality Assurance Metrics> Dial Tone Delay> Post Dial Delay> MOS Score (via PESQ)**> Routing TerminationCall Statistics> Usage (total calls, total minutes)> Call Success Ratio> Answer Seizure Ratio (ASR)> Average Length of Call (ALOC)> Categorization of failed calls (16 categories)> Simultaneous Calls

HFC Statistics> Upstream Signal Quality> Upstream and Downstream Power Levels> Packet Loss> CMTS Interface Statistics (bps)> CMTS Uncorrectables

Subscriber Statistics> Distribution by Billing Plan> Distribution by Location> Distribution by Status

Traffic Statistics> Destination Distribution (local, regional, long

distance, international)> Distribution by Time of Day> Distribution by Day of Week> Unsuccessful Calls

NASDAQ:NTOP • 520 Broad Street, Newark, New Jersey 07102 • (973) 438-3075 • [email protected] • http://cable.net2phone.com

Why Outsource to Net2Phone?

**ITU Standard P.862 -- the Perceptual Evaluation of Speech Quality algorithm

fiber

CAT5

Net2PhoneBackbone

DedicatedBandwidth

VoIP GatewaySegment

NMSSegment

MediaServer

VoIP GatewaySegment

CMSSegment

Router Router

Switch Switch Switch Switch

RouterRouter

Switch Switch Switch

CVOSS

Switch

CVOSSRKS RKS

Miner Miner

BackBoneRouters

Access Routers

Access Switches

MSOIP Network

NetProbe

CDRDB CDRDB

CMS CMS

NetProbeOPSDialer

Dialer

Switch Switch

Billing System

Carrier2outboundinbound

SD

FOUNDRYNETWORKS

BigIron 8000

Carrier1outboundinbound

Carrier4outboundinbound

VPN overInternet

OPS

HFCPlant

FiberOptic

DNS, TFTP,DHCP,TODBroadband

Provisioning

Carrier3outboundinbound

M20M20

M40M40 M40M40

MTAs

CMTS

M20M20

NASDAQ:NTOP • 520 Broad Street, Newark, New Jersey 07102 • (973) 438-3075 • [email protected] • http://cable.net2phone.com

Net2PhoneThe left side of the diagram represents the Net2Phone centrally-located infrastructure, consisting of two network segments:

1. VoIP Gateway Segment that interfaces to the PSTN.2. Network Management Segment that contains the management

systems, billing systems, and the Record Keeping Server.

MSOThe right side of the diagram represents the operator's head-end,voice-specific infrastructure, consisting of three segments:

1. VoIP Gateway Segment that interfaces to the PSTN.2. CMS (also known as softswitch) Segment that performs all of the

call control functions in a fully redundant configuration. By placingthe softswitch within the operator's network, the service remainsoperational for subscribers should a failure of the links back to theNet2Phone segments occur.

3. MSO Local Access Network Segment that contains the CMTS andthe MTAs.

Highlights

> Multiple Data Links for Network ManagementThe service remains fully operational even in the event of primary link failure between Net2Phone and the operator. All off-net calls are directed tothe local operator VoIP segment. Management data utilizes the backup data link (VPN tunnel).

• Dedicated Point-to-Point Connectivity will be established between the operator and Net2Phone as the primary signaling path for data (control andmanagement functions) and may also be used for voice transport to and from the Net2Phone VoIP gateway segment.

• VPN Tunnel will be established through the Internet as a back-up management link between Net2Phone and the operator. This link is only used fordata (control and management functions) between Net2Phone and the operator in the event of point-to-point connectivity failure.

> Traffic PrioritizationRTP and MGCP have priority within the network over management or other data packets.

> Redundant Carriers & Redundant EquipmentShould one facility from any carrier fail, a back-up facility exists from another carrier. In addition, actual facilities and loops are provisioned withredundancy to minimize single points of failure. The CMS (softswitch) is deployed in a redundant configuration. The gateways implement highlyreliable configurations. Separate gateways are used for each PRI or SS7 facility and can serve as a cold spare if needed.

> In-Band and Out-of-Band Remote Equipment ManagementAll systems are monitored using standard management protocols such as SNMP, and can be managed remotely through the redundant data links.

Net2Phone VoIP Sample Network Architecture