NEON Communications Overview
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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!