Synopsis of Green marketing trends that we\\\'re seeing in the telecom equipment space - June 2009

1. Sustainability in Telecom – Green Marketing Trends Jason Marcheck June 2, 2009

3. Power metrics

6. Trends sell

7. Trend = market opportunity

8. Market opportunity = Money

10. What We Think Resonates POWER IS STILL KING! TCO ADVANTAGES OF GREEN LEVERAGING EXISTING MODELS QUANTIFYING INTERNAL INITIATIVES ATTEMPTS AT STANDARDIZATION

11. Power Is Still King Product approach Operators shop for solutions, but they evaluate products Can target specific network pain points Claims easier to justify/validate Service approach Helps enhance value of a portfolio offering Makes connection to service revenue more tangible Demonstrates comprehensive commitment by vendor

12. TCO Advantage of Being Green Demonstrates command of Green issue Power draw is paramount, but it still about more than that Gives vendor opportunity to address multiple angles Weapon to combat price competition Includes life-cycle management Shows how vendor manages its supply chain Marketing opportunity for professional services Enhances idea of supplier as comprehensive partner

13. Leveraging Existing Models IxiaGreen – type products Carries credibility that test and measurement brings to the table Adaptable to multiple classes of equipment Don’t have to go it alone Verizon TEEER Credibility – big network, lots of equipment Public domain = well known Can be leveraged by non-VZ suppliers Make up your own!

14. Quantifying Internal Initiatives How much travel did you save Translate to carbon footprint Translate to bottom line savings Demonstrates the Green ICT argument in action What are your carbon reduction benchmarks Shows deeper level of commitment; not just “lip service” Opportunity to highlight innovation; steps that are being taken Stakeholders are impressed by progress

15. Attempts at Standardization Participation with ITU-T initiative(s) Influence in the process Head’s up on the process Plan to the benchmarks No surprises Work with Ixia’s of the world Demonstrates confidence in product performance Good PR opportunity Applies pressure to competitors

16. What We Think Falls Shortaka “Greenwashing” The “ICT is the savior” routine is becoming overused We’ve heard nebulous arguments about travel reductions, teleconferences, etc. If you’re going to use it, make sure that there’s meat on the bone! Overhyping the altruism Sunshine and singing birds are great… but be honest, its all about the bottom line! Make sure Green marketing is framed in terms of good business sense Anti-Greenwashing Fine line between healthy skepticism and condescension Recognize the desire to be Green is real; address it accordingly

17. What Might WorkWe haven’t seen much of, but would like to… Joint Marketing – Vendor and Operator Both eager to seem Green Helps end user make connection Good opportunity for service delivery approach Joint Marketing – Supplier and Supply Chain Details on TCO – proverbial “meat on the bone” Standards / 3rd Party Test Buy-in ITU’s actions seem to involve rather closed group Ixia seems to be shouting into the wind Both ideas need refining, but are probably worth the effort

18. Conclusions Hype Aside, Green is Real and Worthwhile Obviously, it’s a topic to address comprehensively However, while altruism is noble, its value has limits Green needs to be a path towards Greenbacks!! (or Euros or Kroner…) As Hype Abates, Specifics Will Be Key Internal – How it helps your bottom line Will resonate with investors/employees External – How it helps operators bottom line Duh! Operators Will Want to Move beyond OpEx How Green can help create demand Helping end-users feel eco-conscious Where altruism meets the bottom line!

19. Jason Marcheck - Bio Jason brings more than ten years of experience to Current Analysis clients as an economic, technology and marketing analyst in the telecommunications industry. As a senior analyst covering the Optical Infrastructure market, Jason focuses on tracking, analyzing and reporting on developments that primarily impact the metro, and long-haul optical infrastructure market. His areas of coverage include the companies, technologies and strategies related to the market for WDM-based access, switching, optical add/drop and PON products. In addition to his optical infrastructure coverage, Jason also writes on environmental sustainability issues pertaining to the telecommunications industry. He coordinates Current Analysis’ “Green” market coverage, and engages with the industry’s leading equipment vendors regarding their environmental sustainability initiatives. Prior to joining Current Analysis, Jason worked at the U.S. Securities and Exchange Commission in the Department of Economic Analysis. In addition, Jason served as a Senior Analyst for Pioneer Consulting where he was primarily responsible for covering core optical switching and DWDM-based long-haul transport networks, as well as developments in lambda switching technologies. Previous to that he was an Analyst with The Strategis Group where he covered optical networking infrastructure and broadband services. Throughout his career, Jason has been quoted in leading newspapers, and top telecommunications trade publications. He has often served as a featured speaker and panelist at optical networking trade shows, and has authored numerous columns and articles related to the topics that he covers. Jason holds an MBA from Johns Hopkins University and a BA in Political Science from the University of Pittsburgh.

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