Regional Channel Manager: Brian Buchman Sales Engineer: Seth Gibbs

1. Regional Channel Manager: Brian Buchman Sales Engineer: Seth Gibbs Vice President of Channel Sales: Bruce Wirt

2. 1 2 3 4 Agenda What keeps CIO’s, CISO’s & CEO’s awake at night? Raw Internet vs. Secure Internet (SIaaS) Case Studies: The Path to the Million Dollar Commission Telesystem Overview

3. 124Attacks per month What keeps CIO’s and CEO’s awake? 171 Million $ 3 Billion $ More spent on Cyber Security (DDoS) by the year 2021. (Gartner 1Q-17) An increase of 9% from Q4 2016 resulting in major economic losses and brand damage. (Trend report June 2017 Corero) Reported hard cost of Sony Entertainment DDoS Attack

4. The role of the CISO A Chief Information Security Officer (CISO) is the senior-level executive within an organization responsible for establishing and maintaining the enterprise vision, strategy, and program to ensure information assets and technologies are adequately protected.

5. DDoS in simple terms A DDoS attack is when a malicious agency bombards a network with input & output requests, slowing the service to a crawl and prevents customers from accessing the company’s website.

7. What is SIaaS? Secure Internet as a Service is when the DDoS mitigation is happening inside the carrier’s network that is providing the Dedicated Internet Access.

8. Connecting to a “Raw” Internet Feed

9. Telesystem Secure Internet as a Service

10. 04 01 02 03 Pricing Comparison Always-On DDoS Mitigation National Tier 1 $3,500 Monthly + 1K 100mb = $4,500/Mo. Large MSO $6,500 Monthly + 1K 100mb = $7,500/Mo. DDoS Specialist $8,000 Monthly + 1K 100mb = $9,000/Mo. Telesystem 1K 100mb = $1,995 Average/Mo. Savings can go into additional products! Pricing subject to site survey; $1,699-$2,400

11. It’s about Security • Primary Verticals to Target for Secure Internet Sales: • Education • Finance • Retail • Healthcare • Government

12. Applications for SIaaS DDoS Protected Internet Solution – School District Disrupted the online standardized testing district-wide MSO ISP identified the source, but would not solve the problem until receiving $5,000 per incident Student inflicted DDoS event Telesystem solution is always on to detect and block DDoS attacks Telesystem’s Network, Corero Protected Secure Internet

13. Applications for SIaaS DDoS Protected Internet Solution - Education

14. Our Partner Earned… • Total Agent Commission of $49,200 over a 36 month term • 1x SPIFF of $6,000 • MRC = $6000/mo • Residual @ 20% = $1,200 • x 36 Month Term = $43,200 $

15. Applications for SIaaS • DDoS Protected Internet Solution – Finance (Mortgage) 46 Locations 18 States 16 sites with diverse last mile path, electronics, and POPs Gave security and POP/Fiber diversity at a savings from existing provider Managed Layer 2 Network Solution Grew to $200,000 MRC after layering SIaaS and SIP Trunks

17. Our Partner Earned… • 1x SPIFF of $200,000 • MRC of Ethernet/MPLS = $125,000 • Residual @ 20% = $12,500 • MRC of Voice Service = $75,000 • Residual @ 25% = $18,750 • Total Monthly Residual = $31,250 x 60 months = $1,875,000 • Total Commission Paid to Partner = • $2,075,000!!!!! $

18. Applications for SIaaS National Food Retailer 202 Locations • Unlimited Local & Long Distance • Cabling Price per Drop (as needed) $125.00 • Hardware Configuration • Live Webinar Training 26 States 1,414 Hosted Seats Secure Internet at HQ led to $103,000 total MRC 7 Cable Providers on 1 Bill ScienceLogic

19. Applications for SIaaS National Food Retailer – Network Architecture

20. Our Partner Earned… • SPIFF of $93,650 • MRC of Ethernet/Aggregation Services = $17,650 • Residual @ 20% = $3,530 • MRC of Hosted Voice Service = $38,000 • Residual @ 22% = $8,260 • MRC of Cable Broadband = $30,000 • Residual @ 18% = $5,400 • Total Monthly Residual = $17,190 x 60 months = $1,031,400 • Total Commission Paid to Partner = • $1,125,050!!!!! $

21. End-to-End Security • Company training for employees • Back ups and Cyber Liability Insurance • Sandbox, Phishing & Ransomware • Data protection & ENCRYPTION = Compliance • Root Cause Analysis-Sophos Labs • Firewalls, Endpoint and Server protection

22. What is RDoS? Ransom DDoS According to Radware’s 2016-2017 Global Application and Network Security Report, ransom is the #1 motivation behind cyber-attacks. One out of six organizations worldwide reported having received at least one such ransom note. (6/23/2017)

23. How to Get More Opportunities • Educate YOURSELF first – CALL US! • Google alert “DDoS” • Pay specific attention to attacks in your customers’ verticals. Use these to educate your customers. • Upon renewal for your Ethernet clients, offer both a Raw Internet Quote as well as a Secure Internet Quote, and show them the value vs the risk • Be visible & available $

24. Telesystem Overview • 23 Years in business operation (founded in 1994) • National Network, 39 Physical POPs • Over 4,000 regionalized private fiber route miles • Built-In DDoS protection protection • HIPAA & SOC II Compliant private Data Centers • GEO Redundant Switches: Metaswitch and Broadsoft • LNP in all 50 states • $2 Billion Dollars in Organizational Assets • MSOs: Mississippi, Alabama and Ohio • National CLEC: Includes legacy Telesystem (Midwest, Midsouth and LSI acquisition (Mid Atlantic, Southeast, Northeast) • Network Television Affiliates: ID, IL, OH, KY • Newspapers: Toledo Blade, Pittsburgh Post Gazette

25. Telesystem’s Network

26. Select Telesystem Enterprise Customers

27. Select Telesystem Healthcare Customers

28. Select Telesystem Education Customers

29. Select Telesystem Government Customers

30. Additional Telesystem Services Comprehensive Solutions

31. On-Net DDoS Pricing