Upload
andrew-staicer
View
403
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Citation preview
tw telecom
February, 2012
IT Executive OverviewAndrew M. StaicerAccount Executive9665 Granite Ridge Dr. Suite 500San Diego, CA 92123T 858.805.6041C [email protected]
2
A Unique Set of Network Assets
Over 27,000 local and regional fiber route miles across 75 marketsNearly 15,500 buildings with fiber based services and connectivityNational footprint interconnected with fiber and 10 Gig IP backbone
3
We Have A Fully Differentiated Asset
•Massive Local Optical Network
Connecting nearly 15,500 enterprise buildings
Largest competitive fiber based provider (lit buildings)
True fiber based alternative to the incumbent
Managed Quality of Service
Robust portfolio of services
4
Strong Financial Performance• 2011 Financial Results
• $1.367 Billion in Revenue• $497.7 Million in POSITIVE M-EBITDA• $91.3 Million in Levered Free Cashflow• $57.9 Million in Net Income• 2.0% Sequential Revenue Growth• 7.4% Y/Y Revenue Growth
• Financially Disciplined• EBIDTA Positive since 1999• Manageable Debt Structure• $484.9 Million Cash and Equivalents on
Hand• Investing 20-25% of Revenues in Capital
Expenditures, the majority of which is to reach enterprise locations
Our Revenue Mix Is Increasingly Enterprise Focused…
While Data & IP Revenue Grew 18.2%* 2011 over 2010
tw telecom 4Q/EoY2011 Results
*(1) Adjusted revenue for end of year 2011 and 2010.
(2) For a reconciliation to GAAP related numbers please see the supplemental earnings information on the Company’s website, www.twtelecom.com.
5
Strategic Direction&
Corporate History
6
tw telecom – A Corporate History
1993 1996 1998 1999 2000 2001 2003 2006
Time Warner Communications Formed as a JV
between U S WEST and Time Warner to deliver residential cable telephony
(April, 1993)
Time Warner Communications renamed
Time Warner Telecom
Larissa Herda named President and CEO of Time Warner Telecom
(July, 1998)
Time Warner Telecom completes offering of $400M in
High Yield Notes(July, 1998)
Time Warner Telecom completes IPO raising $290M
(May, 1999)
Time Warner Telecom completes IPO raising $290M
(May, 1999)
Time Warner Telecom completes purchase of GST Communications, completing
expansion 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 launches Metro Ethernet product
portfolio (March, 2003)
Time Warner Telecom completes becomes
EBITDA Positive(2Q99)
Time Warner Telecom completes Secondary offering raising $925M
(April, 2000)
Time Warner Telecom completes secondary offering eliminating
controlling shareholders becoming fully
independent (Sept., 2006)
Time Warner Telecom separates from Time Warner
Cable(July, 1998)
Time Warner Telecom separates from Time Warner
Cable(July, 1998)
Time Warner Telecom acquires Xspedius
Communications, completing expansion into 31 new
markets (October, 2006)
2007
Time Warner Telecom rebranded
“tw telecom”(March, 2008)
2008
Time Warner Telecom
acquires ISP inc.net
(Sept, 1998)
7
Critical Differentiators
• We operate our own fiber network• Over 27,000 route miles of fiber – over 70% within the
metro• Ability to construct unique footprint, scale bandwidth,
deliver robust array of network services
• We offer a robust set of products and services• Industry leadership position in Ethernet Services – metro
and wide area
• We strive for world class customer care• Local management – sales & operations, coupled 2
national operations centers create a unique coverage model
8
Product Portfolio
9
How We Think About It
10
Ethernet and MPLS Service Classes
11
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
12
Our Ethernet Position• Leading & innovating with our Ethernet &
IP strategy• Growth engine for enterprise business• Taking share from the incumbents
• Leveraging our fiber footprint and connected buildings
• Nearly 15,500 fiber connected buildings can have Ethernet Services
• Delivering a differentiated value proposition
• Highlighting convergence• Delivering Data, Internet AND Voice over IP
• Industry Leader• 2011 Frost & Sullivan Growth Leadership
Award for Retail Carrier Ethernet Services• 2010 MEF 9 & 14 Certification
• 10 Gig, Fractional 10 Gig, Long haul• 2006 Awarded “Best in Class” for metro
Ethernet Services -Atlantic ACM
13
Fractional 10 Gig Ethernet Services
Storage & ServerSystems
A Unique tw telecom OfferFractional 10 Gigabit Ethernet Access (2 to 9 Gig) offering more cost effective capacity, scalability, &
Class of Service to support growing Enterprise bandwidth demands for multiple, differing
applications
4 Gig Ethernet forTelepresence, Storage
IP Access
2 Gig Ethernet forServers, Storage
4 Gig Ethernet forTelepresence, IP Access
10 Gig Ethernet forData Center AppsMPLS, IP Access
2 Gig Ethernet forTelepresence, Office Apps
IP Access
Central Office
14
Ethernet EcosystemOn-Net Access
-Nearly 15,500 On-Net Enterprise Buildings
Cloud Access~ 350 3rd Party Data
Centers
Enterprise Networking- Thousands of
Enterprise owned Corporate Data Centers
Internet Platform
Local Reach-Access to 50%+ of all U.S.
BusinessesGlobal Reach
-Top 10 Most Connected Internet Backbone-MPLS IP VPN Partners with Global Reach
•Industry Leading Ethernet Services Portfolio
•World Class Customer Care•27,000 Fiber Miles
- Ethernet NNI- Special Access
15
Internet Services Suite
16
IP Network Services
• Variety of Connectivity - DS-1 to 10 Gigabit Ethernet• TDM Services to T1 to OC-N• Ethernet – Available in Fractional and Burstable
• From 2 Mbps to 10,000 Mbps
tw telecom - one of the 10 most
interconnected IP networks
WorldWide
tw telecom - one of the 10 most
interconnected IP networks
WorldWide
• Robust Service Suite• Dedicated, Switched Solution Options
• Service Level Commitments• 24 x 7 support – Locally, Nationally
• Primary, Secondary DNS, BGP support• Bandwidth Performance Reports
17
IPv6 from tw telecom
• tw telecom has been successfully implementing customer solutions with IPv6 since 2008
• tw telecom uses a dual-stack arrangement, where both IPv4 and IPv6 traffic are handled across the same Internet circuit. • A single direct network will be assigned a /64
• /64 is size of today’s IPv4 Internet – squared!
• A network with a routed connection will receive a /56• /48 available with documented support provided to ARIN.• BGP is supported with Provider Independent space. These
/48 netblocks may be requested directly from ARIN.
• Customers may tunnel IPv4 / IPv6 networks directly
18
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
19
Converged Services
Fully integrate Voice (lines, & PRI or Digital Trunks), secure Internet access, IP VPN and
managed services onto a single IP connection.
20
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
21
Managed Security ServicesCPE-Based
• L3SPI Firewall• Customer defined security policies at
customer premise• DDoS protection (limited to premise – doesn’t
protect bandwidth)• Point-to-point data encryption via IPSec VPN• Network Address Translation
Included Features:
• Comprehensive Security Consultation
• Installation of Service (inclusive of on-site technician for CPE installation)
• 24x7x365 Monitoring and Response
• Dedicated Team of Security Professionals
• Policy Change Management*• Monthly Executive Report*• Service Level Agreements
Network-Based
• L3SPI Firewall• “Clean-pipe” to the premise via customer
defined filters employed in the core• DDoS Mitigation through static filters• Augments CPE security solutions
• Allows higher efficiency of existing security tools
• Allows complex features to be used at the network edge
*Inclusive with Premium level service, additional charge for Business level service
22
Managed Firewall Reportstw telecom
23
Managed Security Services (DDoS Mitigation)
DDoS Mitigation Service
• Available in two options:• “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 tw telecom’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
24
IP Backbone Value Summary
• National Footprint with “Best of Breed” infrastructure
• Multiple 10 Gb/s backbone links
• Diverse / Redundant Network Connectivity• Within Network Backbone • To Customer Premise
• MPLS used within the core increases performance, enables additional services
• 60% utilization target for backbone links and connections.
25
Intelligent NetworkStrategies
26
Bridging the Gap
27
Evolution Of The Cloud
28
Applications Aware Networking
Dynamic Capacity
Enhanced Management
tw telecom’s Intelligent Network
Easy access to end-to-end network performance metrics including utilization, CoS, latency, jitter and packet delivery to assist with planning, trouble shooting and fine tuning your network for optimal application performance. Backed by comprehensive performance SLAs
Easy access to end-to-end network performance metrics including utilization, CoS, latency, jitter and packet delivery to assist with planning, trouble shooting and fine tuning your network for optimal application performance. Backed by comprehensive performance SLAs
Cost effective, on-demand, dynamic bandwidth capacity when and where you need it allowing your network to adopt to specific application traffic demands
Cost effective, on-demand, dynamic bandwidth capacity when and where you need it allowing your network to adopt to specific application traffic demands
Real-time, granular visibility of application traffic and the ability to adjust prioritization by specific application on the fly to optimize performance and minimize non-business impacting bandwidth consumption.
Real-time, granular visibility of application traffic and the ability to adjust prioritization by specific application on the fly to optimize performance and minimize non-business impacting bandwidth consumption.
29
What An Intelligent Network Enables
Phase 3Applications Aware
Networking
Phase 2Dynamic Capacity
Phase 1Enhanced Management
Traffic/Demands
ERP
Financial
Consumer Traffic
Telepresence
Storage
Instant Portal Visibility
Types of Applications
30
Applications Aware Networking
Dynamic Capacity
Enhanced Management
Doorstep-to-Doorstep real time visibility
Granular visibility segment by segment
Ability to detect network congestion
Ability to make real time network decisions
Doorstep-to-Doorstep real time visibility
Granular visibility segment by segment
Ability to detect network congestion
Ability to make real time network decisions
VisibilityVisibility
The Capabilities of Intelligent NetworksThe Capabilities of Intelligent Networks
31
Customer Network
Choose Time FrameChoose Time Frame
Choose Class of Service
Choose Class of Service
Key Metrics by Location,
Sort Ascending or Descending
Key Metrics by Location,
Sort Ascending or Descending
Click to view POP to POP Metrics
Click to view POP to POP Metrics
Click to View SiteSpecific Charts
Click to View SiteSpecific Charts
Click to Export DataClick to Export Data
Sample Summary ReportSample Summary Report
32
Site Specific
• Actual data for a specific site:
• Bandwidth Utilization
• Jitter• Latency• Packet Delivery
• Measures Premise to POP traffic
• Reports available hourly, daily, weekly or monthly
• Data presented as frequent as every 5 minutes
• Easy export to Excel
Sample Latency ReportSample Latency Report
33
Applications Aware Networking
Dynamic Capacity
Enhanced Management
• Ability to add “on-demand” capacity
• When & where customers need it
• More cost effective than fixed capacity
• Improved ROI - pay for what you use
TelepresenceTelepresence StorageStorage
The Capabilities of Intelligent NetworksThe Capabilities of Intelligent Networks
34
Dynamic Capacity*• Ordering interface via
MyPortal (prototype)• Allows customers to
scale to line rate• Provides appropriate
budgeting information
* Prototype and proposed user interface screens
• Real time performance management
• Highlights bandwidth utilization during increased consumption period
35
Applications Aware Networking
Dynamic Capacity
Enhanced Management
• Improves - critical application network
performance
• Mitigates - unwanted bandwidth
consumption
The Capabilities of Intelligent NetworksThe Capabilities of Intelligent Networks
ERP
Financial
Consumer Traffic
36
Applications Enabling Platform
~350 3rd Party Data Centers Connected
37
Voice over IP
38
Our VoIP Product Strategy• Rapidly develop and implement new services that create new and
incremental value for our customers• Cap Legacy Switching Infrastructure – Grow Next-Gen Capabilities• Implemented Traditional Services• Implement Value Added Services
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 CapabilitiesCurrent Capabilities Future Opportunities
Unified MessagingMultimedia ConferencingHosted TelephonyDistributed Call CenterMobilityIM, Presence ManagementWiFi IntegrationHD Voice
39
Convergence
> 100% Bandwidth Increase
20 – 30% Savings on Monthly Spend
40
What Makes tw telecomDifferent?
41
Customer Experience Strategy
tw telecom’s commitment to customer service excellence is based on:• passionate people in local and national customer service roles• customer service choices personalized to your preferences• voice of the customer programs that help us capture customer feedback
and use it to improve the service we provide
With every customer interaction, we strive to Listen, Collaborate and Improve
42
Passionate People
Over two-thirds of our
employees are dedicated to
customer service
43
Unique Approach to Customer Care
Network ApplicationOrganization
Customer ProjectManagement
ProvisioningInstallation
Maintenance & Repair
• Applications Engineering
• Solutions Design
• Consultative Approach
• Network Documentation
• Local Operations Implementation
• National Provisioning
• Testing
• Proactive Status
• Pro-Active Network Monitoring
• Centralized Trouble Ticket Coordination
• Service Assurance Follow Up
• Proactive Status
STRONG LOCAL OPERATIONS AND MANAGEMENT TEAMS
• Comprehensive Project Management
• Implementation Coordination
• Local Field Engineering
44
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
• 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
45
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
46
Voice of the Customer
•Customers consistently said that tw telecom provides a superior customer experience compared to the other telecommunications providers they work with
*tw telecom and competitor satisfaction ratings from tw telecom's September 2009 Customer Relationship Survey
47
Voice of the Customer Program• External validation - Top 10
Finalist for Forrester Voice of Customer (VoC) Award
• Cultural employee embracing of VoC through training and incentives
• Selling the VoC as critical pillar in CE strategy - empowering Sales to have a different conversation with customers
• Vision:• Master the improvements• Skip the plateau• Jump start innovation
Award winners: American Express, CDW, Dell
48
Examples of Our Satisfied Customers
Public Sector Health Services Professional Services
Financial Media & Information Industry Leaders
49
Summary
50
tw telecom
• tw telecom’s nearly 20 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• Over 27,000 Route Miles of Fiber• Metro Ethernet available to nearly 15,500
Buildings in 75 Markets
51
Links to related information tw telecom
GeneralAndrew M. StaicerCorporate Managementtw telecom NASDAQ Press ReleasesMy Portal Instructional Video
ReferencesOur Network Voice of the Customer Announcement Forrester’s Official Voice of The Customer Announcement Carrier Ethernet News Article Reviews from IT Professionals Financial Strength
Andrew M. StaicerAccount Executive II TW Telecom Nasdaq: TWTC9665 Granite Ridge Drive, Suite 500San Diego, CA 92123 Tel: (858) 805-6041Fax: (858) 309-0121Cell: (760) [email protected]
***Contact for softcopy of presentation for the active links on this page***
52
Thank You
Semper Fi! Andrew M. StaicerAEII, San Diego
9665 Granite Ridge Dr, Suite 500San Diego, CA 92123T: 858.805.6041C: 760.586.9640 F: [email protected]
Semper Fi! Andrew M. StaicerAEII, San Diego
9665 Granite Ridge Dr, Suite 500San Diego, CA 92123T: 858.805.6041C: 760.586.9640 F: [email protected]