EJ Butler, Jr.Chief Operating Officer

What Utilities Can Learn From Telcos

PAETEC Overview• One of the largest Nationwide

providers of Competitive Communications Solutions(1)

• Extensive National Footprint

• Presence in 47 of the top 50; 84 of the top 100 MSAs

• Over 75,000 enterprise customers

• 27 quarters of positive free cash flow generation

(1) Based upon revenue(2) Annualized YTD Q309 Revenues

2009 Revenue Composition(2)

Total Revenue = $1.6 Billion

Network Services

78%

Integrated Solutions

5%Carrier Services

17%

Extensive National Footprint with Regional Focus

What Utilities Can Learn From Telcos

1. Competition Will Drive Innovation

• Portability• VoIP• Wi-Fi / Max• Network Security• Cloud Computing

What Utilities Can Learn From Telcos

2. Grow Relationships – Not Customers

• Advisory Boards• Customer Satisfaction Metrics• Regulatory Updates

What Utilities Can Learn From Telcos

3. Fight Unfair

• Create Differentiators

• Reporting Software (expense, utilization, trends)

• Infrastructure Procurement• Financing Options

Fighting UnfairPAETEC Acquisition Timeline

1999 Campuslink LLC – Managed Services Provider

2000 East Florida Communications – Avaya Reseller

2001 Data / Voice Networks – Cisco Distributor

2002 Pinnacle Software Solutions – Telecom Expense Management Software

2007 Allworx – IP PBX Manufacturer

2008 MPX – Fixed Wireless Provider

2008 VARO Technologies – Telecom and Utilities