NEON Communications Overview

							                 NEON Communications Overview
                       Russ Schomber
                       Vice President, Engineering




                                            2200 West Park Drive
                                            Westborough, MA 01581
                                            508-616-7800
                                            www.neoninc.com
August 2, 2006
                       Who is NEON?


NEON, a wholly owned subsidiary of
Globix, is the premier regional
service provider of advanced optical
networking solutions and services
for our customers in the Northeast
and mid-Atlantic markets.
                                                                  1989 - NEON Communications incorporated




                                                                  1994-1997-
                                                                  Obtained RoW to install network
                                                                  throughout New England

                                                                  1998 - NEON IPO – publicly
                                         1980’s 1980’s 1990’s
                                                         1990’s   traded on NASDAQ

                                                                  2002 - NEON EBITDA positive &
                                                                  emerged from Chap 11
                                                                  2003 - NEON acquired Columbia TransCom
                                                                  2005 - NEON became wholly-owned
                                                                  subsidiary of Globix
NEON well positioned for future growth


                                                                  2006 – Globix sold off its Hosting Dv
                                         2000’s



                                                                  assets to focus on NEON
                                                                                                            NEON Milestones
               Where is NEON?




Headquartered in
Westborough MA
         Why Customers Buy from NEON

Service/Support
• We have superior customer service
• We are easy to do business with
• We turn up services quickly and on time
• Our solution selling approach focuses on the
  customer’s needs

Technical Expertise
• We provide custom networks and solutions that our
  customer’s view as extensions of their own network
• We are the best in the industry at delivering complex
  network solutions
         Why Customers Buy from NEON


Price
• We offer cost effective solutions
Reach
• Deep penetration of COs
• Tier II and Tier III market presence
• Enables bypass of local ILEC
• We connect with all major carriers
• We leverage unique RoW to enable route diversity
         NEON’s Network Control Center




• Redundancy               • Monitor power; HVAC;
• State-of-the-art facility ingress and egress of
                             POPS
• 398 network elements
  monitored 24/7           • Five 9’s of reliability
                                                     Network Overview
              •   NZ-DSF and SM Fiber Cable
Fiber Optic   •   Enhanced Bandwidth Capacity Fiber in Metro
 Facilities   •   Built Primarily Over Electric Utility Company ROWs
              •   Augmented by Select Routes with Leased Fiber

 Long-Haul    •   24+ Waves @ 10 Gbps Present Optical Layer
  Optical     •   Future Migration Path > 1.6 Tbps per Fiber Pair
 Backbone     •   OC-192 4-Fiber BLSR Deployed on Optical Backbone

 Regional     •   SONET & Optical Collector Rings to Aggregate Traffic
  Access      •   Extensive Fiber Coverage in Secondary and Tertiary Markets

              •   Fiber Deployed in Metro Markets
   Metro
              •   Metro-Optical & SONET Carrier POP Access Rings form Present
Environment       On-Ramps for Regional / Long-Haul Network

              •   8% of owned fiber is in use (with typical fiber count of 96-144)
 Capacity     •   46% of leased fiber is lit (with typical fiber count of 4-12 strands)
              •   30-60 days to light incremental fiber strands


              •   4 of Tier 1 cities
Colocation    •   11 of Tier 2 cities
              •   Approximately 92,737 sq. ft. of space

              •   Physically diverse network routes
Redundancy    •   Optically protected network
       Unique Right-of-Way Agreements
• Electric Utility ROWs
  – Route diversity enhancing reliability and improving
    penetration (competitive networks are primarily built
    along rail/highway ROWs and are vulnerable to
    common disruptions)
  – Tier 1 as well as Tier 2 and Tier 3 market coverage
    under ROWs enabling NEON to gain in building access
    (something competitors must negotiate and pay
    landlords for)
• Long-term
  – 20-30 years
  – Separate from utility equity commitments
• Strong benefits in implementation of
  network extensions
  – Ubiquitous coverage
  – Single approval process
  – Less costly (conduits, manholes, poles exist today)
                         Who Buys from NEON?
• Incumbent/Local Exchange Carriers &
  Independent Telcos
• Facilities-Based Interexchange Carriers
• Wireless Carriers
• Competitive Local Exchange Carriers
• Internet Service Providers
• International Telecommunications Providers
• Enterprise Customers
• Video Transport Providers
                  Description of NEON Core Services
               • NEON offers SONET services from DS-3
  SONET          - OC-192
Private Line


           • Available at 2.5 Gbps & 10 Gbps. Can be
Wavelength   configured as either a protected or
             unprotected wavelengths.

           • Dedicated point-to-point connectivity at
 Ethernet Fast Ethernet ( 50 or 100 Mbps) as well as
Private Line
             Gigabit Ethernet (600 or 1000 Mbps).
           • Colocation services in 22 facilities.
Colocation
             Facilities offer state-of- the-art secure
             carrier class conditioned and power
             ready space, racks, and cabinets.
          Description of NEON Enhanced Services
                • Provides an OC-48 or OC-12 virtual SONET
                  ring connecting a predetermined set of
 SONET Virtual    locations. Provisioned over multiple,
Private Network
                  shared SONET rings, the service is fully
                  protected with SONET reliability.

                  • Backup services to supplement
Network Control     customer Network Operations Center
    Center          activities needed for disaster recovery.

                 • NEON can design, build, and manage a
 Custom Private    private network on behalf of a
Optical Networks   customer. Can be either at the SONET
                   or DWDM layer.
Extensive Customer Base
              Illustrative solutions NEON has
                        provided to customers

• Enterprise customer needed a private
    network solution
•   Enterprise customer wanted to connect to
    multiple long distance carriers and ISPs
•   Major wireless carrier needed a resilient
    network to connect their switch sites
•   CLEC needed to interconnect metro rings
    quickly, securely, and inexpensively
•   ISP needed to access enterprise
    customers
•   Ethernet DLEC needed to cost effectively
    interconnect routers
                                 2007 Strategic Initiatives
                               Continue to expand
                                to new markets


                                        New
                                       Markets
                                                         Enhance
                                                          existing
                       New                                service set
                     Segments                            Introduce new
                                                          services
 New segments
 New capabilities
                                         New
                                       Products


       Evolve to continue to meet the needs of our customers &
       prospects while remaining true to our mission statement
NEON Communications
    thanks you!