CITEL TechnologiesProduct Overview: CITEL Technologies Product Overview John Drolet V.P. World Wide Sales January 2002


Agenda: Agenda Company Overview Target Market CITEL Innovation Product Overview Target End-User and Pricing Examples Nortel Networks vs. NBX Selling Solutions CITEL Summary


Company Overview: Company Overview


CITEL Technologies: CITEL Technologies TransAtlantic Company Product Marketing - U.S. 1420 Fifth Avenue, 22nd Floor Seattle WA 98101 Development - U.K. Wheatcroft Business Park Landmere Lane, Edwalton, Nottingham NG124DG World Wide Sales – New England Venture Funded – Advent Venture Partners, Aberdeen Technology & Hexagon Investments Inc. Deep background in Phone Protocols Nortel, Avaya, Panasonic, Toshiba, Mitel IP protocols: IP, 3Com NBX, SIP & MGCP PBX Protocol Mapping Reverse Engineering Specialists Clean room practices Intellectual Property 30 Employees and growing


Management Team: Management Team Executive Team CEO Alan Law IBM, Data General, AST Xylogics -> Bay Networks CTO Mike Robinson 3rd Employee Active Voice, TeLanophy inventor IPO & Bus. Dev. Experience VP World Wide Sales John Drolet NBX -> 3Com Corp. Channel and Bus. Dev. Voice and Data Convergence specialist


CITEL Strategy: CITEL Strategy “CITEL’s mission is to radically improve the way our customers communicate by simplifying and accelerating the transition to converged communications through innovative products which link the two worlds of legacy PBX and IP telephony”


Target Market: Target Market


Millions of PBX Handsets Sold (N.A. InfoTech): Millions of PBX Handsets Sold (N.A. InfoTech)


Large Embedded Investment Billions of Dollars: Large Embedded Investment Billions of Dollars Average Useful Life of Handset 8 years Top Four S.M.E Manufacturers: Nortel, Avaya, Inter-Tel, Toshiba Five Year Avg # of Handsets per year Nortel 1,084,133 Avaya 1,347,333 Inter-Tel 808,400 Toshiba 607,867 Five Year Total Top 4 23,086,400 Proprietary Handsets Average PBX handset cost $220 = $5.0 Billion embedded investment


New IP Solutions by Category consider the PBX Handset: New IP Solutions by Category consider the PBX Handset 1. IP Enabled PBXs - VOIP Cards enable PBX systems to use the WAN, LAN left out. 2. New - Multi Functional systems combine (new) Circuit Switch Phones and LAN services. 3. IP Telephony Systems – IP Phones, Full integration with LAN. Old Handsets Preserved on Old Platform New Proprietary Circuit Switch Handsets New IP Handsets Toll By-Pass Only No LAN Telephony Extending Life of PBX systems No IP Phones Ideal Solution No Circuit Switch Phone Support


Slide11: When will IP Telephony Take Over? IP Telephony market share hits 50% in 5 years. IDC 2000 KEY Circuit = Circuit Switch PBX or Key System Handsets IP = IP PBX handsets


IP Telephony is the FUTURE!: IP Telephony is the FUTURE! But what about all those PBX Handsets left behind? TEQConsult Group in “IP: Only Bright Spot In A Down PBX Market.” By Allan Sulkin IP Stations (000)


CITEL InnovationCITEL Changes the Rulesby Bridging Two Worlds and allowing Circuit Switch Handsets to work with new IP telephony platforms: CITEL Innovation CITEL Changes the Rules by Bridging Two Worlds and allowing Circuit Switch Handsets to work with new IP telephony platforms


How Does CITEL Do this? CITEL Experience: 50 plus man years in circuit switch PBX and related experience CTI pioneers IP telephony experience Long term view and understanding of IP PBX market How Does CITEL Do this? CITEL Experience


CITEL Engineering: CITEL Engineering Dialogic (now part of Intel), Natural Micro Systems Communications (NMS), and others created PC/Server Cards to Bridge Circuit Switch PBX Systems and the PC based Software Applications over 20 years ago Applications that have used the technology: Third Party Voice Mail (mid 1980’s) Contact Management Programs (Goldmine, Act) (1990’s) Software based PC phone applications.(1990’s) CITEL uses Similar Technology and Techniques and Applies the solution not to the PC but to the Circuit Switch PBX Handset PBX


CITEL Engineering Process: CITEL Engineering Process Process: PBX systems are purchased on the open market A oscilloscope is used to analyze the electrical impulse output by the PBX showing button pushes and feature use PBX protocols, as in the code burned into the ROMS or EPROMS are not disturbed PBX handsets are re-purposed to the CITEL Handset Gateway not re-created


CITELlink Design: CITELlink Design This Side Provides CITEL Specific PBX Protocol Mapping to the PBX Handset of choice This Side of the Board Provides CITEL Specific IP Interface to the IP Call Control Device Dial tone NBX IP Call Control Features & Functions LCD and Button Indicators PSTN and LAN access


3Com IP PBX and: 3Com IP PBX and


Overview: Overview 16 Ports RJ 11C type Connectors for 16 Norstar Phones, via RJ21 X connector Cable to Norstar phones – Level 3, two pair only 10 Megabyte Ethernet Connector External power adaptor – will power all 16 telephones 100-240v ~ 47-63Hz 1.6A for keysets PSU NBX and SS3 V5000 Chassis & v 4.x software 3Com NBX Key Code applies; 3Cxxxxxx. Utilizes existing universal slots Up to two cards in NBX Chassis, up to four in SS3 V5000 Programming via NetSet and CITELlink Templates Dimensions: Height: 25.4 mm (1.0 in) Width: 287mm (11.25in) Depth: 230mm (9.0in) Weight: 500g (1.1 lb)


Slide20: Product Overview Handset Gateway for 3Com NBX Systems


3Com IP PBX and : 3Com IP PBX and Plug in to 3Com chassis, growth to 200 Ports Connection to LAN via Ethernet 16 Port CITEL Handset Gateway Existing Handsets are repurposed Existing PBX cable is retained


3Com SuperStack 3 NBX and: 3Com SuperStack 3 NBX and SS3 NBX grows to 600 Phones CITELlink Handset Gateway fits both the NBX Chassis and the SS3 NBX 3Coms SS3 NBX L A N PBX Handsets Use Existing Wiring CITELlink Handset gateway


M7208 becomes a NBX phone: M7208 becomes a NBX phone


M7310 becomes a NBX Phone: M7310 becomes a NBX Phone


Product Implementation Highlights: Product Implementation Highlights Norstar user interface will be changed NBX will auto-detect Norstar telephones plugged in to the CITEL blade. A new NBX Handset default button profile will occur Do Not assume features from Old Norstar profile will map to new CITEL/NBX/Norstar solution Certain buttons, i.e. Line Appearances will change


End User Offer: End User Offer Handset Gateway for 3Com NBX* 16 port blade $2,000 * Prices subject to change. Prices do not include any license or key code costs that 3Com will charge.


Target End-User andPricing Examples: Target End-User and Pricing Examples


Target End-Users : Target End-Users Any end user moving, renovating, upgrading or considering new applications (CTI, UM etc…) The customer has Norstar Equipment Nortel Networks – Norstar Handset is the largest single Handset installed base worldwide


Investment Benefits“Remember Top 5 NBX 100 / SS3 Positioning Features”: Investment Benefits “Remember Top 5 NBX 100 / SS3 Positioning Features” FREE Voice Mail & Email in one in-box FREE Browser Based Administration FREE Call Detail Reporting software FREE Computer Telephony Integration One click dialing from Outlook – Contacts Other TAPI applications IP enabled features One wire to the desktop - Save per cable run Telecommuting made easy Add Advantage: Retain two thirds of original PBX investment Retain Telephone Handset & Reuse existing wiring


Pricing Examples Norstar versus 3Com NBX: Pricing Examples Norstar versus 3Com NBX Business is outgrowing a Norstar Compact ICS (6X16) system Business is upgrading to Norstar Voice Mail and adding telecommuters Business expanding Norstar system Considering new BCM from Nortel Upgrading number of Lines Upgrading number of Users Considering CTI Business has reached maximum capacity of the Norstar Modular ICM


Pricing Example 1Outgrowing Norstar -Compact ICS (6x16) - upgrading to the Modular ICS, adding 6 ports of voice mail: Retained $5,200 from original investment Pricing Example 1 Outgrowing Norstar -Compact ICS (6x16) - upgrading to the Modular ICS, adding 6 ports of voice mail Total Savings $11,715


Pricing Example 2Upgrading to Norstar Voice Mail (configured 12x80), and adding 10 telecommuters: Compare to new NBX @ $44,000! For only $4,365 You get 90 UM clients 10 telecommuters CTI interface CDR Pricing Example 2 Upgrading to Norstar Voice Mail (configured 12x80), and adding 10 telecommuters


Pricing Example 3Upgrading Norstar system to new BCM IP-enabled system. Unified Messaging and CTI for 40 users and VM upgrade. Re-using 30 phones and 12 PSTN line cards. Adding 10 new phones: Pricing Example 3 Upgrading Norstar system to new BCM IP-enabled system. Unified Messaging and CTI for 40 users and VM upgrade. Re-using 30 phones and 12 PSTN line cards. Adding 10 new phones Unlimited users More key codes Total Savings $2,430


Pricing Example 4Maxing out of a Norstar Modular ICM : Pricing Example 4 Maxing out of a Norstar Modular ICM No upgrade path from Nortel Norstar to Meridian 1 PBX system Throw away the phones Throw away the Chassis/KSU Throw away the Voice Mail system Throw away the investment With and NBX SS3 Keep all the Norstar phones and grow to 600 Combine NBX business sets with Norstar Phones Receive the new IP PBX platform for enhanced applications


CITEL SummaryLarge Existing Investment in PBX Handsets vs. Hot New (IP PBX) Technology: CITEL Summary Large Existing Investment in PBX Handsets vs. Hot New (IP PBX) Technology


CITEL Summary Internet Telephony is the future!: CITEL Summary Internet Telephony is the future! CITEL Technologies uncovers New Investment Protection for Nortel Users Protects Norstar Handsets Lessens Dependency on Nortel IP Strategy CITEL Bridges the Two Worlds of PBX Handsets and IP Telephony Solutions PBX Handsets are re-purposed Customer investment is preserved Handsets represent 2/3 of overall PBX purchase price. Businesses Resist Change “CITEL Products Lessen the Pain.”


CITEL Summary: CITEL Summary “Billions of Dollars invested in PBX Handsets can now receive the savings and efficiencies of the new IP Telephony Revolution” CITEL – Bridging Two Worlds For More Information, Contact: Sunlink Systems Inc. (480) 380-7977