on the Internet The Power of Voice - Packetizer...Total VoIP and PSTN Traffic, 1997-2002 Note: Voice-over-IP (VoIP) traffic includes all cross-border voice calls carried on IP networks

© 2003 ITXC Corp. ® All rights reserved. Proprietary and Confidential.

The Power of Voice on the Internet

Tom EvslinChairman and CEO

© 2003 ITXC Corp. ® All rights reserved. Proprietary and Confidential.2

020,00040,00060,00080,000

100,000120,000140,000160,000180,000200,000

1997 1998 1999 2000 2001 2002

Total VoIP and PSTN Traffic,1997-2002

Note: Voice-over-IP (VoIP) traffic includes all cross-border voice calls carried on IP networks but terminated on public switched telephone network; PC-to-PC communications and private network traffic are excluded. PSTN traffic includes circuit-switched voice and fax traffic carried on traditional international facilities as well as international simple resale (ISR) facilities. Figures for 2002 are estimated.Source: TeleGeography research. © TeleGeography, Inc. 2002

Inte

rnat

iona

l Min

utes

(Milli

ons)

7.5 m

150

1,555

5,849

9,91618,478

International VoIP TrafficInternational PSTN Traffic


Wholesale VoIP Service Forecast (Minutes in Millions), 2000-2005

0

100000

200000

300000

400000

500000

600000

2000 2001 2002 2003 2004 2005WholesaleSource: Frost & Sullivan, February 2003


Market Share of International VoIP Minutes, 1998-2002

0%

20%

40%

60%

80%

100%

1998 1999 2000 2001 2002

Other VoIP Carriers

Primus

ITXCiBasis

Deltathree

Net2Phone

Source: TeleGeography research and company reports. © TeleGeography, Inc. 2002Note: Traffic statistics include only international VoIP minutes


ITXC Quarterly Revenue

23.527.6

36.1 38.846.5

51.857.7

66.070.1

74.581.7

0.2 1.0 3.1 4.6 6.511.1

15.1 18.6

0

20

40

60

80

100

Q398 Q199 Q399 Q100 Q300 Q101 Q301 Q102 Q302 Q103

$MM


0 5,000 10,000 15,000 20,000

Telecom ItaliaTelefonica

C&WITXC

British TelecomFrance Telecom

Deutsche TelecomSprintAT&T

WorldCom

ITXC one of the World’s Leading International Carriers

Source: TeleGeography research. © TeleGeography, Inc. 2002. Note: ITXC data is 2002. All other carriers are 2001 which is latest available. WorldCom, AT&T, and C&W data includes traffic from multiple countries of origin documented in the list of the top 40.

53

3

122

Ranking changefrom previous year

Top 10 Carriers in 2001 based on Annual International Minutes of Use in Millions


Inherent Benefits of Building on the Internet

➘ Fully meshed network➘ Distance insensitive cost structure➘ Ubiquitous presence ➘ Highly resilient➘ Low capital/recurring costs


7 PoPs7 PoPs7 cities each with an

E1 (2 Mbps) connection to each of

the others. 21 E1s

$1,029,472a month

Amsterdam

A Fully Meshed Network Add a PoP for

$225,816 More;

Cost Increases with

each new PoP

Source: Lynx Global Telecom Database 5/03 and Bandwidthmarket.com. Prices based on fiber optic capacity and a 1 year contract. Prices exclude local loop charges and taxes.

Los Angeles

Frankfurt

Tokyo Sydney

New York

London


7 PoPs7 PoPs7 cities each with

an 6 Mbps Internet connection

$63,987a month

Amsterdam

Cost Efficient Internet-based Network; Pops Added at Linear Cost

Internet

$5,400 to add an IP PoP!

Los Angeles

Frankfurt

Tokyo Sydney

New York

London

Source: MCI (WorldCom) public pricing and Bandwidthmarket.com. Prices only include monthly recurring charges and do not account for installation charges or taxes. 6MB price = 3 x 2MB price.


InternationalSwitch

NEW YORK

LONDON

InternationalSwitch

MUNICH BONN LYON MONTPELIER BARREDRESDEN

TORONTO MONTREAL CALI BOGATAGUADALAJARA

LocalSwitch

LocalTandem

LocalSwitch

LocalTandem

FRANKFURT

NationalSwitch $$

$$

$$MEXICO CITY

NationalSwitch

$$

$$$$


MUNICH BONN LYON MONTPELIER BARREDRESDEN

TORONTO MONTREAL CALI BOGATAGUADALAJARA

LocalSwitch

VoIPGateway

LocalSwitch

VoIPGateway

VoIP Networkon the Internet


Enterprise IP Telephony Equipment 2003: An Inflection Point in the Industry

Source: InfoTech, December 2002TDM line shipments for PBXsIP line shipments for IP, IP-Enabled & Converged Systems

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1999 2000 2001 2002 2003 2004 2005 2006

IP Line Shipments TDM Line Shipments

$MM


Growth of IP PBX’s

23.7%

46.3%50.0%+

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

2001 2002 2003

% of Enterprise Telephone Stations Sold in the U.S. that are IP-based

Source: In-Stat/MDR


Enterprise VoIP Service Forecast (Minutes in Millions), 2000-2005

0

100000

200000

300000

400000

500000

600000

2000 2001 2002 2003 2004 2005

EnterpriseSource: Frost & Sullivan, February 2003


InternationalSwitch

NEW YORK

FRANKFURT

NationalSwitch

MUNICH

LocalTandem

LocalSwitch

$$

Corporate Customer TodayCorporate

PBX

LONDON

InternationalSwitch

GUADALAJARA

LocalTandemLocal

Switch

$$ $$

$$ NationalSwitch$$

$$


The Significance of VoIP on Customer Premises

InternetDESKTOP

PHONE

DESKTOP PHONE

Corporate IP Network With IP PBX

Controller

VoIPGateway

LocalSwitch

LOCALPHONE


Consumer VoIP Service Forecast (Minutes in Millions), 2000-2005

0

100000

200000

300000

400000

500000

600000

2000 2001 2002 2003 2004 2005

ConsumerSource: Frost & Sullivan, February 2003


Total VoIP Service Forecast (Minutes in Millions), 2000-2005

0

200000

400000

600000

800000

1000000

1200000

2000 2001 2002 2003 2004 2005

Wholesale Enterprise ConsumerSource: Frost & Sullivan, February 2003


All Voice will be on the Internet by 2010

WholesaleServices and

Transport

ConsumerServices

EnterpriseServices

Internet


Tom EvslinChairman and CEO

ITXC Worldwide

Santiago+562.209.8278

Sao Paulo+55.11.9656.4710

Buenos Aires+54.114.978.4566

Miami+1.305.443.9444

Manila+63.917.539.6796

Tokyo+81.90.9813.3977

Bangalore+91.98440.32675

Hong Kong+852.91901231

Sydney+61.402.000660

Singapore+65 68385298

Moscow+7.095.9987752

Johannesburg+27.11.258.85.68

Tel Aviv+972.3.7783007

Frankfurt+49.06196.920.2.190

London +44.207.872.5623

Over 175 countries through direct traffic relationships with over hundreds of national and global carriers

Documents

on the Internet The Power of Voice - Packetizer...Total VoIP and PSTN Traffic, 1997-2002 Note: Voice-over-IP (VoIP) traffic includes all cross-border voice calls carried on IP networks