© 2010 Colt Technology Services Group Limited. All rights reserved.

Colt Unbranded Backbone Solution

Obtain your backbone solutions from the European specialists in high performance and secure Networks across Europe

Alessandro CaianiAccess & Backbone Solutions Snr. Manager

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Unbranded Solutions

A portfolio of solutions that help you achieve your business goals

AccessSolutions

Obtain your end-customer access from the specialists in high performance and secure access at a metro, national and international level

Dat

a

BackboneSolutions

Upgrade your infrastructure, extend your backbone or completely outsource your backbone in Europe without the need for capital investments

White-LabelSolutions

Broaden your business by including white-label services from Colt into your own portfolio of solutions (Data & Corporate Voice)

Voice Interconnect

Solutions

Get help with the origination and termination of voice and VoIP traffic from a leading pan-European public voice operator

Voi

ce

Managed ServicesSolutions

Open doors to new ways of working by introducing hosting services, enterprise cloud and virtualisation to your organisation or your-end customers’ IT environment M

anag

ed

Ser

vice

s

AccessSolutions

Obtain your end-customer access from the specialists in high performance and secure access at a metro, national and international level

Dat

a

BackboneSolutions

Upgrade your infrastructure, extend your backbone or completely outsource your backbone in Europe without the need for capital investments

White-LabelSolutions

Broaden your business by including white-label services from Colt into your own portfolio of solutions (Data & Corporate Voice)

Voice Interconnect

Solutions

Get help with the origination and termination of voice and VoIP traffic from a leading pan-European public voice operator

Voi

ce

Managed ServicesSolutions

Open doors to new ways of working by introducing hosting services, enterprise cloud and virtualisation to your organisation or your-end customers’ IT environment M

anag

ed

Ser

vice

s

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Agenda

Colt Company profile

Market dynamics and challenges

Backbone solution

Why Colt ?

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4 © 2010 Colt Technology Services Group Limited. All rights reserved.

Colt company profile

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Company profile

• Founded in 1992

• Shareholder stability: Fidelity Investments

• 2010 revenues of €1.583m

• 2010 EBITDA of €330,2m and profit of €77,1m

Our Performance

• Data, Voice & Managed Services

• 5.000 employees in 14 countries

• Over 35,000 European business and government organisations rely on us

• Trusted by carriers, operators and service providers

Our Capabilities

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Colt Reach• Live customer services in 65 countries

• 150+ comprehensive list of certified network partners

• 35,000km 21-country network grown organically since 1992

• 100+ directly connected cities/towns in Europe

• 250+ Carrier hotels, co-location facilities, IP and Ethernet exchanges connected

• 400 Ethernet point-to-point interconnection agreements with operators worldwide

• 39 Metropolitan Area Networks with 17,000 Colt fibre-connected buildings

• 19 owned and managed state-of-the-art data centres across Europe (ISO 27001)

• Customer service desks in 13 countries, Technical Service Centre located in Barcelona with 24/7 helpdesk, speaking 15 languages and managing 1.2 m calls/Y

• Best-in-class Security Operations Centre and Network Operations centre, disaster recovery BS 25999 certified.

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Upgrade your infrastructure, extend your network or completely outsource your backbone without the need of capital investments

Colt Backbone Solution footprint

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2001-2004 WCA for Best Customer Care

2005 WCA for Best Regional Operator

2006 WCA for Best Brand

2005 200720062004 2008

Strongest Ethernet product portfolio

2009

Service Provider of the Year – Best Product Portfolio

International Optical Service Innovation

Service Provider of the Year

Best Service Portfolio

Best Regional Operator

2010

Service Provider of the Year

Best Business Ethernet Service

Award-winning Ethernet services

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As Europe’s leading information delivery platform, the CCS Unbranded Division of Colt brings together

pioneering European Ethernet and IP networks, significant IT infrastructure

and services across Europe.

10 © 2010 Colt Technology Services Group Limited. All rights reserved.

Market dynamics and challenges

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Market dynamics

• Legacy systems give way to next-generation networks Evolutions in telecommunication core networks with Frame Relay and SDH replaced with Ethernet and IP VPN

• Network obsolescence The majority of backbone networks were built many years and as such suffer from manufacturer discontinuity, high cost and lack of new product support

• All major players in the market focused on reducing costsBackbone costs form a substantial and increasing proportion of their total service related costs, and hence operators are working hard to control them

• Top line revenue stagnatingDeregulation and increased competition have eroded prices and encouraged commoditisation

The challenge is to drive new revenues at higher margins by developing value added services such as low latency solutions whilst maintaining a

strong focus on costs so that you can improve profitability.

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Backbone challenges

• Manage relationships with multiple suppliers

• Achieve operational efficiencies with lowest unit cost

• Cope with pressure on your margins due to increased competition

• Be prepared for rising bandwidth needs

• Satisfy your customers’ demands for greater network coverage

• Comply with ever more stringent regulations

• Look for low latency solutions as these are critical for the financial community

Market dynamics create Backbone challenges

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Core business “defocus" • If you decide to build your own network:

– Slow time to market– Significant amount of CAPEX and OPEX is required– Investors are in short supply, and they’re nervous

• If you decide to buy single circuits from different vendors in several countries:– Complexity increases– Logistic challenges arise– Economies of scale are limited– Cultural barriers and different business practises may appear– Development status of third-party network technology affects you

Most operators are not looking to build their own networks – it’s expensive and the capital just isn’t available. Therefore the third party route is being actively considered.

The challenge is to minimize the number of different suppliers so that you can benefit from the economies of scale and reduce carrier relation effort.

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“Do it yourself” impacts

Options available for you with multi-country European access requirements

High

HighLow

Options:

A. Building own network

B. Leasing circuits from local tier 2 or tier 3 carriers

C. Leasing circuits from local Incumbents

D. Leasing circuits from an alternative carrier/supplier with pan-European network coverage

A

BC

Ability to

achieve

low

Cost of O

wn

ership

Multi Country Coverage Across Europe

D

Pricing constraints due to regulation

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Backbone – cost example

Consider a typical, three city backbone network, i.e. London - Paris - Frankfurt

• Year 1 cost to build

• Typical cost saving for virtual network may typically exceed 50%– Minimal Capex outlay

– Minimal Opex

– Still retain full control of your backbone

Cost element

10 year IRU* € 2,000,000

Install costs € 150,000

Capex € 1,000,000

Annual fibre maintenance costs € 200,000

Total € 3,350,000*Indefeasible right of use

16 © 2010 Colt Technology Service Group Limited. All rights reserved.

Backbone Solution

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Concentrate on what you do best and let Colt support your networking needs and deliver

the metro, national and international backbone you require right across Europe.

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Your benefits at a glance

with customer wins in further geographic areasBoost your revenues

Outsourcing (fully or part of the network) reduces your cost base and can deliver a strategic operational value

Reduce costs

of our local staff in countries across Europe Take advantage of the

expertise

by using cost effective Hub & Spoke or virtual optical networking solutions

Benefit from innovative technologies

Reduce number of different partner carriersand standardise interfaces/relationships

Streamline your vendor management

with Colt‘s best in class service level agreementsPlay it safe

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One solution, a range of options

Colt Backbone Solutions: based on a wide product portfolio

• Colt IP VPN (MPLS NNI)

• Colt Link

• Colt LANLink• Colt LANLink Hub & Spoke• Colt Ethernet Private NetworkBackbone

Solutions

Colt Solutions

NetworkTechnology Product

Metro

National

International

Variant

MPLS

Wavelength

SDH

Ethernet

Please contact your account executive for more detailed product information

• Colt Wavelength

• Optical Private Network

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Virtual networks and outsourcing – realise an commercial and operational advantages• All telecommunication operators are under pressure

to reduce their cost base

• With virtual networks and full or partial outsourcing you will be able to • focus on the core of your business

• concentrate on your own network

• concentrate on your own higher margin products and services

• take advantage of Colt’s continuous product enhancements

• Colt has the Network and the expertise to support you

• Colt NOC-to-NOC-Service: the direct communication channel, to quicker analyse problems and perform troubleshooting without wasting valuable time

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Example: MPLS Network NNI Solution

MPLS NODE

With an MPLS NNI the providers coverage is effectively extended

Sites in France and the UK communicate with one another in this example via a fully meshed network

NNI

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NNI “Everywhere”

Indicates the Cities where Carriers can currentlyinterconnect with Colt – currently 53 locations

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Customer self-service portal

• The user-friendly online tools for our customers

• Make business easier and faster

• Accessible via internet web-browser

• Secured access

• You can:– Obtain availability information

and prices in real time– Order services– View orders, bills and

call detail records (CDRs)– View fault trouble tickets– View list of services in operation– View billing tickets

24 © 2010 Colt Technology Services Group Limited. All rights reserved.

Why Colt ?

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Colt Solutions make Customer life easier

Our offer Your benefit

Economies of scale and third party managementConnectivity across Europe

Fast provisioning with firm delivery dates

Strong SLAs and competitive lead times

Strong relationship and easy communication

Single point of commercial contact

Tailored tools making Colt easy to do business with

Online customer self-service portal

Reliable service assurance Unified services across all geographies

First class supportCentral customer service in your local language

Better managing your cost baseCompetitively priced services

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Colt is a high quality partner for you

“Superb customer service in the carrier Ethernet services market across the continent”(Frost & Sullivan, 2006)

„Network performance and SLAs are strong “ (Current Analysis, Feb 2009)

„Best in Class for Wholesale in Europe“(BroadGroup, 2005 and 2006)

„Best Pan-European Wholesale Offering“(Capacity, 2005)

ISO 9001:2000 Certification, renewed 2007. Achieves customer satisfaction through consistent products and services which meet customer expectations.

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To be your infrastructure partner of choice,

that is the easiest to do business with for backbone services across Europe

Our goal

© 2010 Colt Technology Services Group Limited. All rights reserved.

Thank youAlessandro.Caiani@colt.netwww.colt.net