CAVALIER-CORPORATE-OVERVIEW-APRIL-2010

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					                    COMMERCIAL SERVICES
                         Corporate Overview




Cavalier - Opening the door to a new wave of productivity-enhancing services.
                                                       Corporate Overview



 100% Facilities-based network, fully
  owned and operated by Cavalier

 Serving more than 70,000 U.S. companies

 Deep coverage in 16 states and D.C.

 50 Markets and growing




             Providing advanced communications solutions and support
                    for businesses of all sizes in the eastern U.S.
                                                                       1
                                                         Financial Stability



 10+ Years in business

 Positive EBITDA and free cash flow since 2002

 Privately held, large, stable shareholders including; Bank of America, BB&T
  and GE

 Steady growth of strategic services

 1,200 Employees




                                                                                2
                                                              Network Overview
                                                        Technology partners

 Owned and managed by Cavalier, with deep and
  extensive eastern U.S. coverage
     17,000 Fiber miles (includes 3,500 metro fiber miles)

 900 On-net buildings

 600 Collocations (more than half on Cavalier fiber)

 Ongoing investment in network and infrastructure
     Increased Central Office (CO) density in served
      markets
     Diverse routes on inter-market transport
     Increased capacity on IP backbone to 10 Gigabit per
      second (Gbps)
     Platforms to support advanced applications like VoIP,
      VPLS, SIP trunking, and network management
                                                                              3
                                                    The Converged Network


SONET backbone
   Diverse, self-healing rings enhance
    redundancy and increase network resilience

Metro Ethernet
   Advanced access with speeds up to 10 Gbps
   Consistently strong operational metrics
The bridge to the future
   Migrating customers from traditional services
    to an all Internet Protocol (IP) environment,
    at a pace that works for them
   MPLS-enabled backbone addresses even the
    most complex private networks




                                                                      4
                                         Industry-specific Experience

Hospitality     Finance      Education        Health Care   Non-profit




   Retail     Automotive   Manufacturing      Government     Energy




                                                                         5
                                           Simple Products on Simple Terms


    Basic Voice and Data        Access                                 Private Networks
    POTS                          Integrated voice and data                 Virtual Private LAN Service (VPLS)
    Local and long distance       Dynamic voice via IP                      MPLS
    Toll-free
                                   PRI (dedicated, bonded,                   Remote access VPN
    Calling cards
                                    dynamic)                                  Point-to-point
    Flexible voice bundles
    DSL                           Dedicated Internet access
                                   Physical layer options: T1, EFM,
                                    SONET, 100Mbps – Gig Ethernet




Managed Services                IP Telephony                               Professional Services
      E-mail security             Auto-attendant                             Dedicated Hosting
      Network based firewall      Remote and mobile workers                  VoIP readiness assessment
      Anti-virus / Anti-spam      Unified messaging                          Collocation
      Web content filtering       Advanced call routing                      Server virtualization
      Managed equipment           Click-to-dial                              Network assessments
                                   Outlook integration                        Systems integration
                                   Unlimited usage
                                   Find-me / follow-me

                                                                                                             6
       Enterprise Express

Secure, high-speed private networking

         Product Overview
                                                                                          Enterprise-class Private Networking




Combines the flexibility of IP, the simplicity of Ethernet, and the reliability
  of SONET technology in our core network.
Two interface options
1.   VPLS (Layer 2) (Virtual Private LAN Service)
       »   MPLS controls traffic flow through Cavalier’s network
       »   Geographically dispersed LANs are meshed into a single-bridged, Ethernet LAN
       »   Ethernet hand-off; Customers maintain their own routing plans, independent of Cavalier’s routing.

2.   MPLS (Layer 3)
       »   Managed router option – Cavalier configures BGP or static routing and maintains routers.
       »   QOS defined by customer, per application.
       »   Up to 13 Useable IP addresses (must be specified).
                                                       Enterprise-class Private Networking




• Access options include EFM, NxT1, Gig-E
• Service options
     Internet Access (per sight or aggregated)
     Combined with integrated voice/data service
• Customer controls traffic prioritization (QoS - Quality of Service)
point to point or multi-point private networking
 As few as 2 locations up to hundreds of locations.
                                             Addressing business priorities


Predictable service levels
The need for end to end Quality of Service (QoS) and predictable service levels for demanding
    applications, such as IP Telephony, VoIP services, and transactional databases.

Security
Maintaining the integrity of transmitted data while converging to a common infrastructure.

High availability
Deliver data in a reliable and timely manner. Ensure the availability and transmission of critical
    applications.

Scalability
Quickly adapt to changing bandwidth requirements and business requirements. Services need
    to grow easily without labor intensive configuration changes.
                                                                                                       Quality of Service

Cavalier MPLS Backbone Network Latency Performance Objectives
   Round Trip Delay          Data Delivery %                   Jitter

            50ms                    99.99%                     <3ms



Cavalier MPLS Premise to Premise Network Latency Performance Objectives
         Priority Level       Round-Trip Delay                Data Delivery %                 Jitter

               1                     100ms                        99.95%                      <5ms
               2                     100ms                        99.90%                      10ms
               3                     100ms                        99.00%                      20ms




   Class of Service       Priority Level                         Application Sensitivity                           Application Examples

Gold                            1              Highest priority business applications                   IP PBX Voice or Citrix
Silver                          2              High priority business applications                      Video
Bronze                          3              Medium to low priority business applications             Internal Database / e-mail, web




• When use exceeds bandwidth constraints, lower priority traffic will only be serviced
after higher priority traffic is first handled.
• Within available bandwidth constraints, traffic is handled in a priority fashion. If traffic exceeds available bandwidth, SLA
guarantees don’t apply.
                                                              Network performance measurement


Mean Time to Repair (MTTR)
Depends on the physical access method used at a given location. (T1, EFM, Gig-E)
Service Level Agreement (SLA) measurements
“Cavalier MPLS Network Latency" is a monthly measure of the Cavalier network-wide delay,
    which is the average time it takes during the applicable calendar month for test packets of
    data to travel between selected pairs of Cavalier MPLS Network Nodes.
The “Data Delivery Percentage” is the average Data Delivery percentage for that month for all
    selected pairs of Cavalier Network Nodes calculated by dividing Data Received by Data
    Delivered and multiplying by 100.
“Jitter” - Network-wide IP packet delay variation. The average difference in the time it takes for
     selected pairs of test packets to travel between pairs of Cavalier MPLS Nodes - reported as a
     monthly average.
                               14 nodes supporting Midwest & Mid-Atlantic footprint




Alcatel-Lucent 7750 Service Routers (SR)
   - Reston/Alexandria VA - Philadelphia PA      - Cleveland OH


Alcatel-Lucent 7450 Ethernet Service Switches (ESS)
    - Washington DC            - Cleveland OH                - Norfolk VA
    - Newark DE                - Columbus OH                 - Richmond VA
    - Baltimore MD - Pittsburgh PA                 - Grand Rapids MI
    - Detroit MI               - Warminster PA
                                                    Geographic Availability



Available in COs where EFM and/or T-1 access is currently available.

Mid-Atlantic
Midwest
Off net offers are ICB, via SPR Process.
                                                             Enterprise Express


Advantages
Control of Internet and internal network traffic
Centralized Management
Ethernet Hand-off
Ability to mix connection options (EFM, NxT1)
IT Productivity improvements
Consolidated servers
Secure communication
Bandwidth can be increased quickly
Integration of voice, internet and private network traffic
                                              Additional security options




Firewall when public IP is added
e-mail security: anti-virus, SPAM filtering
Web content filtering
Remote Access VPN
Site to site VPN failover option
                                                Network Equipment / CPE


Core Router
     Alcatel-Lucent 7750
Backbone Routers
     Alcatel-Lucent 7450
CO Equipment
     Adtran TA5000
     Hatteras EFM
Customer Premise Equip.
     Hatteras HN 4000 -or- Netvanta 814, 818
        - Plus -

     Adtran 900 series (Managed router)
                                              CPE




                                 NetVanta
                                 T-1 access
     Adtran NetVanta 814
     Adtran NetVanta 818




                                  Hatteras
                                  EFM Access
HN404-CP-1E-1
HN404-U-2E-1-T Internet Access
HN408-CP-1E-1
HN408-U-2E-1-T Internet Access
                Ethernet
                                          2 yr                    3 yr
            (per connection)
                                 MRC             NRC     MRC              NRC
                3 Mbps           $425            $250    $390            Waived

                5 Mbps           $625            $375    $575            Waived

                10 Mbps         $1,100           $500   $1,025           Waived
                15 Mbps         $1,525           $625   $1,425           Waived
                20 Mbps         $1,900           $750   $1,800           Waived



          T1 (per connection)            2 yr                    3 yr

                                MRC              NRC    MRC               NRC
Pricing
               1.5 Mbps         $450             $250   $410             Waived

               3 Mbps           $810             $325   $750             Waived

               4.5 Mbps         $1,175           $400   $1,075           Waived
               6.0 Mbps         $1,525           $475   $1,420           Waived




            Internet Access              2 yr                    3 yr

                                MRC              NRC    MRC               NRC
               1.5 Mbps          $68             $200    $64             Waived

               3 Mbps           $126             $200   $119             Waived

               4.5 Mbps         $176             $200   $166             Waived
               5 Mbps           $190             $200   $179             Waived
               6.0 Mbps         $216             $200   $204             Waived
Proprietary & Confidential
                              VOIP Overview
Voice over IP
       Voice over Internet Protocol
       Voice over private IP is even more descriptive
* Hosted IP Telephony
       Cavalier “IPeer” solution
       Hosted means that all call processing, intelligence, voicemail, etc. is hosted
        by Cavalier at the data center and does not reside at your premises
Voice over Internet
       Voice calls over the public Internet
       Cavalier DOES NOT route your voice traffic across the public Internet




 Proprietary & Confidential
                                                Who is Aastra?




Founded in 1983
Headquartered in Concord, Canada (Toronto Stock Exchange: Symbol T: AAH)
Profitable for 44 consecutive quarters (through Q1 2009)
Revenue: $750 million in 2008
100% Focused on Enterprise Communications
More than 50 million lines around the world
Top 3 SIP Phone vendor in the world (along with Polycom and SNOM)
Acquired several product lines from manufacturers such as Nortel, Lucent and
   Ericsson




   Proprietary & Confidential
                                                 IPeerBasic IP Phone

                             Up to 9 lines supported with 3 dedicated line
                             buttons
                             Up to 6 paper labeled programmable function
                             keys
                             3 line LCD screen
                             Full-duplex speakerphone
                             Dual 10/100 switched Ethernet ports
                             PoE or AC adapter (included)
                             Configuration via telephone, Web, or
                             TFTP/FTP/HTTP/HTTPS config download
                             Firmware field upgradeable
                             Modular Headset jack
                             Integrated XML browser
                             Supports G.711u/a & G.729 codecs
                             Display screen is not backlit




Proprietary & Confidential
                                                                        2
                                                 IPeer Advanced IP Phone
                             Largest Aastra display phone
                             Up to 9 lines supported with 4 dedicated line buttons
                             30 Programmable Function Keys
                                      6 LCD labeled Top Softkeys programmable up to 10
                                       features
                                      6 LCD labeled Softkeys programmable up to 20
                                       functions
                             Graphical LCD screen
                                      144 x 128 pixels
                             White LED backlight
                             Full-duplex speakerphone
                             Dual 10/100 switched Ethernet ports
                             PoE or AC adapter (included)
                             Configuration via telephone, Web, or
                             TFTP/FTP/HTTP/HTTPS config download
                             Firmware field upgradeable
                             Modular Headset jack
                             Integrated XML browser
                             Supports G.711u/a & G.729 codecs




Proprietary & Confidential
                                                                                      2
                                                                       IPeer CT IP Phone

                                         Cordless mobility (CT)
                                                 Radio transceiver and antennae integrated in
                                                  phone
                                                 WDCT 2.4 GHz ISM band compliant & license free
                                                 WDCT link from handset to desktop phone; SIP
                                                  from desktop phone outward over IP
                                                 300,000 sq. ft. coverage area
                                         Cordless handsets support:
                                                 Intercom
                                                 Headset
                                                 Vibrating Alert
Executive phone with cordless mobility           Backlit keypad and LCD
                                                 15 programmable function keys
    – No wireless infrastructure         Supports two simultaneous calls
      required                                   One on base, one on cordless handset
                                         Environmental and capacity planning
                                                 Typical cubicle set up is limited to 15-20 cubicles,
                                                  with 6/8 CT phones active at any one time

  Up to 4 handsets per base
  Only one talk path between CT and Base
  IP telephone at one time.


    Proprietary & Confidential
                                                                                                2
                                        Customer Portal - Dashboard




Access the following by logging on to
the customer portal:
  Call Logs
  Contacts
  Feature Setting
• Find me/Follow me
  Unified Messaging
  Click-to-dial
• Manage call pick up groups




          Proprietary & Confidential
                                    Customer Portal - Administration




Account administrators can make basic MACs:
 - Add Lines (previously allocated)
 - Add/Remove Features
 - Change feature settings
 - Alter hunt groups
 - Add speed dials and contacts




       Proprietary & Confidential
                                         Key Features



                   Included Key Features
                    SimRing (Simultaneous Ring)
                    Find me/Follow me (Sequential Ring)
                    Extension Dialing
                    Multi-line Hunt Groups

                   Features available at an Additional Cost
                    Auto Attendant
                    Music on Hold
                    Tool bar with Call Control Options


* Feature available at additional cost

      Proprietary & Confidential
                                                                                          Feature Packs


    Features
                                        User Features
                                                               •Directed call pick-up
•Call waiting (with or without caller ID)
                                                               •Short codes (group and personal)
•Call forwarding (unconditional, busy, selective, fixed)
                                                               •Account codes (mandatory and optional)
•Call park / retrieve
                                                               •Internal/external caller ID presentation
•Do not disturb
                                                               •Distinctive ringing for internal/external calls
•Automatic recall (AR) and callback (AC)
                                                               •Call rejection (anonymous or selective)
•Caller ID / calling name (delivery and blocking)
                                                               •SimRing
•Message waiting lamp
                                                               •SIP Call Forking
•Station-to-station intercom dialing
                                                               •Find Me Follow Me (configurable via web portal)
•Attendant console (line state monitoring)



                                        Group Features
•   Web-based Administration                               •   Find Me Follow Me
•   Auto Attendant                                         •   Business Group Dialing Plan
•   Automated Call Distribution (ACD)                      •   Special Intercept Announcements
•   Shared Line Appearance                                 •   Multiple Appearance Directory Number (MADN)
•   Outgoing Call Blocking                                 •   Multi-Line Hunt Groups
•   Mandatory Account Codes                                •   Music on Hold
•   Selective Call Rejection                               •   Click to call (with Desktop Assistant)
•   Anonymous Call Rejection                               •   Remote Worker support
•   Screening List Editing
•   Toll Restriction


Proprietary & Confidential
                                               Ethernet in the First Mile




Ethernet Express uses an industry standard for bonding multiple circuits to
   form a symmetrical Ethernet connection

Designed for reliability and performance for business customers

Multi-pair operation provides more bandwidth and redundancy

Customer remains active as long as one circuit is active
                                                                 Cavalier is offering 3, 5 and 10 Mbps options




3 Mbps - 3 circuits
5 Mbps - 4 circuits
10 Mbps – 8 circuits

Circuits are bonded by Hatteras HN400 series equipment at
           the customer’s premise

Ethernet Express is monitored through the Hatteras
          equipment

If one circuit fails, the Hatteras equipment is self-adjusting
           and can adjust the bandwidth
                                                                                                         EFM

                                                  Reliablility, Redundancy & Scalable Bandwidth

                                               Businesses have the flexibility to purchase Ethernet Express in
Ethernet Express bonding of multiple           increments suitable for their business requirements
circuits keeps customers active even in        Upgrading bandwidth, ie. From 3 Mbps to 5 Mbps, does not
                                               automatically require a truck roll. The bandwidth is controlled
the presence of failures                       by Cavalier using simple configuration tools.

   - vs. T-1 failure will cause complete       Reliability with Service Level Agreement:
                                               99.9% availability
customer outage                                60 milliseconds latency or less
Cavalier will allocate an additional circuit   3% packet loss or less

for N+1 protection scheme. In the
presence of a circuit failing, the
customers typically do not experience
loss
   - vs. T-1 failure will cause complete
customer outage

				
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