NetBorder SS7 Gateway Sales Training

Version 5.0 update

Agenda

• • • • • • SS7 Overview NetBorder SS7 Gateway Version 5.0 (NSG 5.0) Pricing and SKUs Use Cases Competition Closing 10/18/2012

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© Sangoma Technologies Inc. 2012

SS7 OVERVIEW

SS7 Overview

• • • • • • • TDM Telecom landscape littered with protocols – ISDN, CAS, R2, V5.2, GR-303, … and SS7 SS7 = S ignalling S ystem Number 7 Deployed in Carriers / Service Providers Networks Roots of specifications date back to the 70s – To counter blue box fraud Incumbent Telcos massively deployed in late 80s It is the basis for LNP, CNAM, 800/freephone numbers, GSM wireless networks Networks moving to VoIP but there are still a lot of SS7 networks out there © Sangoma Technologies Inc. 2012 10/18/2012

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SS7 Protocol Stack

• • • SS7 allows for call to be established, monitored, torn-down, etc.

Network Nodes are identified with Point Codes – it is like an IP address for SS7 networks SS7 protocol has several layers – MTP 1, 2, 3 for routing SS7 messages – ISUP for call set-up and tear-down – TCAP for database transactions (800, CNAM, LNP, Mobile) • TCAP is not a required function for VoIP Gateways

TCAP SCCP MTP3 MTP2 MTP1 ISUP

© Sangoma Technologies Inc. 2012 10/18/2012

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SS7 Structure

T1 or E1 T1 or E1 T1 or E1 © Sangoma Technologies Inc. 2012 1 Channel is reserved to carry the SS7 Protocol messages for all the T1/E1 in the trunk group All other channels carry voice in TDM format (in SS7 parlance called CIC = Carrier Interface Channel, each CIC has a number) 10/18/2012

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SS7 VoIP Gateway Explained

• • They are required to interconnect legacy PSTN networks to next generation VoIP Networks Hence VoIP Gateways are translators – They convert TDM Protocols to IP Based Protocols and vice-versa – They convert TDM voice to IP based voice and vice-versa SS7 Protocol TDM Voice VoIP Gateway IP Protocols Packet Voice © Sangoma Technologies Inc. 2012 10/18/2012

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Similarities with Enterprise Gateways

• • • VoIP Gateways are translators – Take legacy PSTN protocols – Convert them to VoIP Enterprise Gateways convert End-User to Network protocols – Analog, BRI, PRI Carrier Gateways convert Carrier to Carrier protocols – Such as SS7 Analog GWs Analog FXO VoIP GW Digital BRI GWs ISDN BRI VoIP VoIP IP-PBX VoIP GW Digital T1/E1 PRI GWs T1/E1 PRI VoIP IP-PBX VoIP GW IP-PBX © Sangoma Technologies Inc. 2012 10/18/2012

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SANGOMA’S NETBORDER SS7 GATEWAY

Sangoma’s Involvement in SS7

• • • Sangoma has offered SS7 solutions to various degrees over the years Started with our own SS7 ISUP stack – Back then we competed with Open Source – Our solutions were ‘piece parts’ of boards and pieces of software – clunky assembly required – It got our feet wet, developed expertise and allowed us to continually raise the bar We now have NetBorder SS7 Gateway, a full fledged GW, that integrates a carrier grade Trillium SS7 stack. The product comes ready to configure and put in service at the customer site © Sangoma Technologies Inc. 2012 10/18/2012

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Current NetBorder SS7 Gateway

• • • • • •

features

Up to 32 E1 per server SS7 ISUP Signaling with several national variants – ITU, ANSI, Bellcore, France, UK, China, India and Russia SIP VoIP Signalling Wide range of narrowband and wideband codecs supported – for any to any codec transcoding Flexible XML based routing rules for call control For reference, we use a Trillium SS7 stack – Commercial and carrier grade – Facilitates conformance testing with various carriers © Sangoma Technologies Inc. 2012 10/18/2012

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New Features with NSG Ver 5.0

• Key Features: – SNMP monitoring for T1/E1 – Radius Protocol for Management Megaco = Media Gateway Control Protocol – H.323 (legacy VoIP interconnects) – SIGTRAN M2UA – called Signalling GW or SG – MEGACO / H.248 signalling – called Media Gateway or MG These are the big deal features, next few slides explain why © Sangoma Technologies Inc. 2012 10/18/2012

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SS7 to SIP Gateway

(local network intelligence)

1 NSG 3 PSTN SS7 Voice 4 SIP 6 Packet Voice IP Network 2 5 1. SS7 traffic arrives at NSG 2. TDM Voice arrives at NSG 3. SS7 Stack decodes protocol up to ISUP layer 4. NSG software translates ISUP to SIP 5. NSG software packetizes the voice 6. VoIP Packets sent to IP Network © Sangoma Technologies Inc. 2012 10/18/2012

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SS7 to SIGTRAN / Megaco Gateway

(distributed network intelligence – scales better for service providers)

1 NSG 3 PSTN SS7 Voice 4 6 8 M2UA Megaco Packet Voice IP Network Softswitch 6 5 2 7 1. SS7 traffic arrives at NSG 2. TDM Voice arrives at NSG 3. SS7 Stack decodes protocol up to MTP2 4. SS7 Stack converts MTP2 to M2UA (SS7 over IP) 5. Softswitch decodes SS7 protocol 6. Instructions sent to NSG via Megaco from Softswitch 7. NSG software packetizes the voice 8. VoIP Packets sent to IP Network In this scenario, NSG is a slave to the softswitch. Large service providers want this because it simplifies their network deployments. Central billing, central monitoring, can install GW everywhere with the same basic configurations.

© Sangoma Technologies Inc. 2012 10/18/2012

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Deployment Options

Before NSG 5.0

SS7 Voice NSG SIP VoIP

With NSG 5.0

SS7 Voice NSG SIP VoIP No need for special licenses Its just a choice you make when you configure the Gateway – Great flexibility!

© Sangoma Technologies Inc. 2012 SS7 Voice OR NSG M2UA Megaco VoIP 10/18/2012

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Go After the Bigger Fish

• • SS7 to SIP is OK for small networks – Small Service provider – Value Added Services SIP is too limiting for networks with large amount of interconnection POPs – Megaco and M2UA allow for better distribution of network – Facilitates integration with large softswitch vendors that service providers use © Sangoma Technologies Inc. 2012 10/18/2012

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PRICING AND SKUS

Purchasing Options

• •

Appliance

All-in-one turnkey transcoding solution Compact 1U or 2U form factor

• •

Software license only

Purchase telephony and transcoding hardware separately Use your own hardware to build your SS7 Media Gateway server © Sangoma Technologies Inc. 2012 + 10/18/2012

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List Pricing

Size

1U 2U

Appliance Capacity

4 E1/T1

SKU

SS7-NSG-AP04 8 E1/T1 SS7-NSG-AP08 16 E1/T1 SS7-NSG-AP16 32 E1/T1 SS7-NSG-AP32

Description

NetBorder SS7 Media Gateway Software License. Telephony and Transcoding hardware sold seperately

Capacity

4 E1/T1 8 E1/T1 16 E1/T1 32 E1/T1

SKU

SS7-NSG-LI04 SS7-NSG-LI08 SS7-NSG-LI16 SS7-NSG-LI32

List Price

$ 11,295 $ 14,495 $ 21,995 $ 34,995

List Price

$ 2, 980 $ 3, 960 $ 5, 940 $ 7, 920 © Sangoma Technologies Inc. 2012 10/18/2012

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Services

• • SS7 is a complex protocol – Will offer Certification Training Always quote with Services: – Getting Started Packages – 8 hours of professional services @ $1600 – not discountable – Annual software support and maintenance packages (s/w upgrades and updates, telephone support) • On appliances: 5% on MSRP • • On software: 20% on Software License price Not discountable © Sangoma Technologies Inc. 2012 10/18/2012

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Conformance Testing

• • • Incumbent Telco often impose lab certification before a competitive service provider is allowed to interconnect It is not a requirement for vendors, it is a requirement for Service Providers – our customers The message is: – We are here to support your certifications efforts – Our Trillium stack provides us with great confidence of compliance © Sangoma Technologies Inc. 2012 10/18/2012

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USE CASES

Typical Megaco / Sigtran deployment

Softswitch PSTN SS7 Voice Broadband Router M2UA Megaco VoIP VoIP PSTN SS7 Voice M2UA Megaco VoIP M2UA Megaco VoIP IP Network VoIP VoIP IP PBX Legacy PBX VoIP GW SS7 PSTN 10/18/2012 © Sangoma Technologies Inc. 2012

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SIP deployment: Combine with OST for MVAS development

Drivers SIP PSTN 1 PSTN 2 PSTN 3 SS7 Voice SS7 Voice SS7 Voice © Sangoma Technologies Inc. 2012 • • Sangoma for SS7 to SIP Asterisk Dial plan for Softswitch VoIP IP Network 10/18/2012

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SIP Use Case: Large Scale IVR

Central IVR Director, proxy, load balancer, etc.

Sangoma NetBorder SS7 Gateway pool LAN / WAN SS7 + 32 E1 1 SIP + RTP + SS7 Relay SIP IVR App SIP + RTP 32 E1 2 SIP + RTP + SS7 Relay IVR svr SIP + RTP IVR svr SIP + RTP IVR svr 32 E1 3 SIP + RTP + SS7 Relay 10/18/2012 © Sangoma Technologies Inc. 2012

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COMPETITION

Open Source SS7

• • • • • LibSS7 (Digium) / Chan_ss7 Unstable and difficult to work with Poor variant coverage and certification record Most serious carriers are not interested in using an open source stack and making their own gateways Only a factor in emerging markets where price is the only decision factor. Sangoma does not compete in such situations where the buyer only wants the cheapest/free solution.

© Sangoma Technologies Inc. 2012 10/18/2012

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Telcobridges

• • • • • Proprietary H/W design TMG800 (1-8 T1/E1) , TMG3200 (8-64 T1/E1) Pricing OK, poor channel coverage Does not support SPIROU ISUP (FT variant) Patton OEMs TMG 3200 under the 10K Series

Model List Price Sangoma Pricing comparison

TMG 800 4 spans TMG 3200 8 spans TMG 3200 16 spans TMG 3200 32 spans $ 16,100 $ 21,000 $ 34,000 $ 48,000 Sangoma 4 spans Sangoma 8 spans Sangoma 16 spans Sangoma 32 spans $ 11, 295 $ 14, 495 $ 21, 995 $ 34, 995 © Sangoma Technologies Inc. 2012 10/18/2012

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Dialogic

• • • • Proprietary H/W design Financial situation?

IMG1004 (1-4 T1/E1), IMG1010 (4 T1 – 32 T1) High priced

Model

IMG 1004 2 spans IMG 1004 4 spans IMG 1010 8 spans IMG 1010 16 spans IMG 1010 24 spans

List Price

$ 12,040 $ 19,600 $ 45,437 $ 58,210 $ 73,110

Sangoma Pricing comparison

Sangoma 4 spans Sangoma 8 spans Sangoma 16 spans Sangoma 32 spans $ 11, 295 $ 14, 495 $ 21, 995 $ 34, 995 © Sangoma Technologies Inc. 2012 10/18/2012

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Audiocodes

• • • • Proprietary H/W design Mediant 2000 and Mediant 3000 – Old design > 10 years old – Does not support SIP Revenue dropped 21% in Q1 2012 High priced solution

Model

Mediant 2000 4 spans Mediant 2000 8 spans Mediant 2000 16 spans Mediant 3000 32 spans

List Price

$ 15,550 $ 26,820 $ 39,390 $ 66,411

Sangoma Pricing comparison

Sangoma 4 spans Sangoma 8 spans Sangoma 16 spans Sangoma 32 spans $ 11, 295 $ 14, 495 $ 21, 995 $ 34, 995 © Sangoma Technologies Inc. 2012 10/18/2012

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Squire Technologies

• • • • • • UK based, founded approx in 2002, About 25 people, £ 5M run rate annually All solutions built from Audiocodes Boards and APIs – expensive and can only hope to offer the same features as Audiocodes Extensive SS7 solutions (not just gateways) Poor channel coverage Very present at Service Providers shows Actively promoting as replacement to Cisco EOL products – Cisco PGW and Cisco IPT © Sangoma Technologies Inc. 2012 10/18/2012

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Cisco SS7 EOL products

• • Cisco PGW: – it is a softswitch – Can be configured as a VoIP GW but it does a lot more – Can recommend our NSG but we are not feature comparable – only if the PGW is used as a GW, then we are good Cisco ITP: – It is mostly a Signalling Transfer Point (STP) and a Signalling Gateway – With NSG release 5.0, we can replace a Cisco ITP if it is used as a signalling gateway (we cannot be an STP) © Sangoma Technologies Inc. 2012 10/18/2012

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NSG Competitive Chart

Solution Pricing MTP2/3 ISUP SIGTRAN TCAP SIP MEGACO

© Sangoma Technologies Inc. 2012 10/18/2012

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CLOSING

Summary

• • • The NetBorder SS7 Gateway is a cost effective and robust solution delivered in a compact 1U or 2U appliance.

It offers a good protocol coverage and feature set at the best price per port of the commercial market.

This product is perfectly suited for the carrier market in emerging markets where CAPEX budgets are tight.

© Sangoma Technologies Inc. 2012 10/18/2012

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