About tw telecom

We know your network.

But we also know your name

We know your network.

But we also know your name

2

We are now tw telecom

Different name. Same obsession with delivering exceptional customer care.

Instead of bureaucracy and runaround, you get committed people who listen carefully, respond quickly and make things happen.

Maybe that’s why over 80% of our customers say they’d recommend us with confidence—a remarkably high number for any industry, let alone ours.

3

Who is tw telecom?

• One of the top three business Ethernet service providers nationwide• Over 26,000 metro and regional fiber route miles across the country*• Over 8,800 buildings lit with fiber-based services*• National footprint interconnected with fiber and multipurpose 10 Gig IP

backbone

What really sets us apart from other

providers is a deep-rooted, customer-first mindset at every level of our company, from

our CEO on down.

*as of 9/30/2008

4

tw telecom – A Corporate History

1993 1996 1998 2000 2001 2003 2006

Time Warner Communications Formed as a JV between U S

WEST and Time Warner Cable to deliver residential cable

telephony(April 1993)

Time Warner Communications renamed

Time Warner Telecom

Larissa Herda named President and CEO

(July 1998)

Time Warner Telecom completes purchase of GST

Communications, expands into 15 new markets(January 2001)

Time Warner Telecom announces expansion into 5 new markets - Minneapolis, Chicago, Atlanta,

Columbia, Denver(May 2000)

Time Warner Telecom completes over 30 network

expansions, increasing market footprint to 44 Markets

(2003 through 2006)

Time Warner Telecom separates from Time

Warner Cable(July 1998)

Time Warner Telecom acquires Xspedius

Communications, expands into 31 new markets

(October 2006)

2008

Time Warner Telecom becomes tw telecom

(July 1, 2008)

5

NationalMulti-City

Multi-Location

RegionalMulti-City

Multi-Location

City WideMulti-Location

SingleSite

Our Customer Focus

Connectivity

ManagedSolutions

Reach ApplicationsCustomers

Fortune1000

Large> 500 Seats

Medium< 500 Seats

SME< 100 Seats

Complex ManagedSolutions

Storage, DistributedData Centers, DR/BC,

Imaging, EnterpriseApps (CRM, ERP),

VPNEnhanced

ConnectivityMedical Image,

VoIP VPNSimple

Package

tw telecom’s“Sweet Spot”

Bringing unique value to the enterprise

6

Metro Networks - Positive Industry Trends

• Ethernet has become the preferred method of connecting data networks

• Metro Ethernet equipment market estimated to triple to $15.5 billion worldwide by 2009(1)

• Metro Ethernet services revenues expected to increase to $22.5 billion worldwide by 2009(1)

• Technology key to supporting applications

(1) Market Data, Infonetics Research “Ethernet Services, Market Size and Forecast”

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Our Ethernet Position• Leading & innovating with our Ethernet &

IP strategy• Growth engine for enterprise business• Taking share from the incumbents

• Leveraging our fiber footprint and connected buildings

• Over 8,500 fiber connected buildings can have Ethernet Services

• Delivering a differentiated value proposition

• Highlighting convergence• Delivering Data, Internet AND Voice

over IP• Industry Leader

• 2006 Awarded “Best in Class” for metro Ethernet Services -Atlantic ACM

• 2005 Frost & Sullivan Award for product line strategy leadership

August, 2007

8

Ethernet Is the New Public Network

• Pervasive In Enterprises

• Familiar to Customers

• Highly Scalable

A Logical Migration of LAN Wide Area

Frame Relay Ethernet

Metro Ethernet offers up to 2200% more bandwidth than Frame Relay

45 M

b

10 M

b

100

Mb

1-10

Gig

T-156

K

9

Products and Services Strategy

Voice & DataIntegrated Access

VoIPBusiness

Class

StorageTransport

Security & IPVPN Services

Managed Services - 24x7x365 Monitoring & MaintenanceManaged Services - 24x7x365 Monitoring & Maintenance

Hosted ServicesAnti-VirusAnti-Spam

UnifiedMessaging

Transport & WavelengthsDS-1, DS-3, OC-3, OC-12, OC-48, OC-192

Switched ServicesDigital Trunks, Primary Rate Interface, LD

IP ServicesInternet Access to 1 Gig

ERP CRM Storage Supply Chain

NLANMetro

Ethernet

FoundationalNetworkServices

ManagedBundledServices

ManagedApplications

PartnerOpportunities

Available Today

Planned or In Progress

Extended NLAN (WAN Service)

Robust service portfolio meeting wide range of enterprise applications

10

Metro Ethernet Services Portfolio

Corporate Facility (Data Center)

Enterprise Branch Offices

Service portfolio supports wide range of enterprise applications & requirements • Internet Access, Voice over IP, National Ethernet, Data Center Storage• Scalable bandwidth to 10 Gig• Ethernet over Copper facilities for cost effective branch office connectivity

tw telecomMetro Fiber Network

tw telecom Ethernet

Access Ring

Enterprise Regional and Branch Office Buildings

T1(s) Access

T1(s) Access

tw telecomIP Access

tw telecomInter-City Ethernet

Gigabit Ethernet

tw telecomVoIP Network

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Telecom Savings with Convergence

Convergence Savings - 28%Bandwidth Increase - 122%

PRI(1) $1,220IP Access (T1)(2) $ 500Intranet $ 500 (Frame Relay T1)(3)

Total $2,220

Site to Site LD $ 300 100 seats @ $3/seat/mo

Total $2,520

IP TrunksEIS IP Access

Intranet (10 Mb NLAN)

Voice VPN(Site to Site LD)

Total $1,8001 Average Tariffed rate across RBOCs, 36 months2 Average “street” price for T1 of IP Access3 Average Tariffed Frame Relay rates across RBOCs, 36 months

tw telecom Network

We know your network.

But we also know your name

We know your network.

But we also know your name

12

Product Portfolio

13

Metro Network Architecture

Core Fiber Backbone< 256 Strands

Distribution Rings< 24 Strands

DWDM System32 – 64 Waves

Up to 10G

LEC Office

Carrier Hotel/POPEnd User Bldg

MSPPSONET ADM

VoiceDS-nOC-nEthernetInternet

tw telecom C.O.

MSPPSONET ADM

MSPPSONET ADMType II

VoiceInternetDS-n

Class 5DCS3/1

VoIPMedia

Gateway

Next GenIntegrated

Access

MSPPSONET ADM

EthernetSwitch

EdgeIP

Routers

Core IPRouters

DWDM

PSTN

TWTCSS7 Network

DS-nOC-n

24 x 7 Monitoring/Maintenance, NEBs-3, UPS, Diesel Generator, etc.

IPBackbone

Up to OC-192

End User Bldg

VoiceDS-nOC-nEthernetInternet

MSPPSONET ADM

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Quality of Service - MPLS

tw telecom IP MPLS BackboneService Class Applications

Expedited ForwardingCBR

Assured ForwardingVBR - rt

Enhanced DeliveryVBR – nrt

Basic or Best EffortUBR

Voice, Signaling, Surveillance

DB Replication, Mirroring, Video E-NLAN (Premium)

VPN, E-NLAN (Basic)

IP Access, e-Mail, VPN

CBR Constant Bit Rate Traffic Latency Dependent ApplicationsVBR – rt Variable Bit Rate Traffic Real Time ApplicationsVBR – nrt Variable Bit Rate Traffic Non-Real Time ApplicationsUBR Unspecified Bit Rate Traffic Best Effort Applications

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Based on its breadth of services and network reach, tw telecom is positioned as a leader in the industry

Competitive Advantage• Expansive reach:

• More than 8,600 buildings with tw telecom fiber

• Relative ubiquity in the market with Type II access

• Multiple Ethernet service offerings for best fit with customer applications within budget parameters

• Customer Experience (people & expertise) based on industry leading longevity in Ethernet services

Winner of the 2005 Frost & Sullivan Award for Product Line Strategy Leadership!

Ethernet Services Portfolio

tw telecom

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Native LAN (NLAN) Portfolio

• Native Local Area Network (NLAN)

• Full duplex business-to-business Ethernet connectivity between multiple customer locations

• Comprehensive Ethernet Product Suite

• Elite NLAN• Point-To-Point

Connectivity• Point-To-MultiPoint

Connectivity• MultiPoint Connectivity

• S NLAN (Switched NLAN)• CD NLAN (Customer-Direct

NLAN)• Extended Native LAN

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Native LAN (NLAN) PortfolioChoose the Right Service for Your Business

Various Equipment Types

Hybrid SONET Equipment Ethernet Switch Equipment

BEST GOODBETTER

Elite NLAN

CD NLAN

CD NLAN

SNLAN

DedicatedBandwidth

SharedBandwidth

• Ethernet Private Line (EPL) and Private LAN (EPLAN) services - Elite NLAN

• Dedicated and Non-Oversubscribed bandwidth to customer.

• High Availability - SONET-protected NLAN service.

• Higher Priced

• Ethernet Virtual Private Line (EVPL), Virtual Private LAN (EVPLAN) services - Switched NLAN

• Shared and Oversubscribed bandwidth to customer.

• Standard Availability - Non-SONET protected NLAN service.

• Lower Priced

• Ethernet Private Line (EPL) service - CD NLAN

• Lowest Priced, “No Frills”, basic point-to-point connectivity.

• Non-managed, No availability guarantees.

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We know your network.

But we also know your name

We know your network.

But we also know your name

Internet Services Suite

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IP Network Services

Variety of Connectivity - DS-1 to Gigabit Ethernet• T1 (1.5 Mbps), NxT1 – Non-bonded and bonded service (3 Mbps to 6

Mbps)• T3 (45 Mbps) – Available in Fractional and Burstable T3 bandwidth

levels• OC-n (155, 622 Mbps) – Available in Fractional and Burstable

bandwidth levels• Ethernet – Available in Fractional and Burstable

• From 2 Mbps to 1,000 Mbps bandwidth levels

Robust Service Suite• Dedicated, Switched Solution options• 24x7 support, local and national• Service Level Commitments

• Primary/secondary DNS/ IP Addressing/ BGP• Bandwidth Performance reports via web

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Ethernet Internet Service

• Dedicated Internet Access over Full Duplex Native LAN Connection

• Scalable to 1 Gig

• 2 Mbps increments to 10 Mbps

• 5 Mbps increments to 100 Mbps

• 20 Mbps increments to 1 Gig

• Easily Connects to Existing Customer CPE

tw telecom IP Backbone

CD-NLANS-NLAN

EthernetOver SONET

2 Mbps to 1 Gig

tw telecom NativeLAN Network

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IP VPN Solutions – Product Overview

• tw telecom’s IP VPN Solutions gives customers control over resource deployment for both Intranet and Extranet

• Choose how your network is configured• Choose the bandwidth you need• Choose the level of service wanted for each application

Option to pay for ONLY the bandwidth you consume

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IP VPN Service Diagram

tw telecom

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IP VPN – Class of Service

• Premium IP VPN, will deliver Class of Service as a value add-on

• The IP VPN CoS offering delivers five Service Classes

• Realtime (Highest Priority)• Interactive • Mission Critical • Priority • Best Effort (Lowest Priority)

• A “Service Class” represents a group of traffic with similar network performance requirements

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IP VPN Performance Monitoring Tools

• MyPerformance• Service visibility through a secure web-based portal• Premium (CoS) Customers

• Password Protected• On-demand performance statistics• SLA conformance information• Network and equipment utilization• Trouble ticket submission and tracking (coming soon)

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IP Backbone

• OC-192 (10 Gb/s) backbone• Diverse / Redundant Connectivity from Backbone to

Customer• Packet-over-SONET (POS) • MPLS• 60% utilization target for links and connections• “Best of Breed” infrastructure

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We know your network.

But we also know your name

We know your network.

But we also know your name

Business Voice over IP - VoIP

27

VoIP – State of the Industry

VoIP is poised to be the single largest telephony initiative in decades

VoIP Marketplace Activity

• Technology replacement delivering lower cost infrastructure

• Long Distance Transport• Select New Services

Service Provider

• “POTS” Substitution• Technology leverage

supporting competitive attack strategies

• New entrants• Cable companies

Residential

• Convergence driving cost savings

• Single wire, Branch office connectivity, MAC control, Toll avoidance

• Intranet centric solutions• “VPN” implementations

dependant on best effort IP connectivity

Enterprise

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VoIP

• “One Wire to the Desktop”

• “Toll Bypass” - Site-to-Site Communications

• Eliminate Moves, Adds & Change Charges

• Portability & Telework• Key To Disaster

Recovery Plans

Are you using or planning to use IP telephony?

19%

13%

3%

3%

62%

Currently RunningTrialPlan To Implement1-2 YearsPlan To Implement6-12 MonthsPlan To Implement0-6 MonthsCurrently Using

Is the quality of IP telephony holding you back from further application?

35%

65%

Yes

No

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Enterprise VoIP Adoption

• Increasing trend for enterprise adoption

• 90%+ of equipment being shipped by 2010 will be VoIP

• Cisco, Avaya, Nortel comprise nearly half of equipment market

• Next steps

0% 20% 40% 60% 80% 100%

US

Canada

500 - 1,499 Employees

1,500 - 4,999 Employees

5,000 + Employees

Enterprise Adoption of VoIP

Yes

No

Enterprise Voice Market Share

19.80%

16.40%

10.90%

52.90%

Cisco

Avaya

Nortel

Other

Source: Yankee Group 2005 Economics of IP Communications Survey The Deal Magazine, TechConfidential, July, 2006

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Our VoIP Product Strategy

Rapidly develop and implement new services that create new and incremental sources of revenue

• Cap Legacy Switching Infrastructure – Grow Next-Gen Capabilities• Implemented Traditional Services Driving New Revenue• Implement Value Added Services, Creating Customer Loyalty

Packet/IP Infrastructure Gateway End User

Convergence Value Added ApplicationsLower Cost Voice

Digital TrunksPRIsLong DistanceDisaster RecoveryInternational TerminationCalling Cards

IP TrunksVoice VPN (Site-to-Site)VoIP Virtual Number ServiceVoIP “Features” to Digital PBXsVoIP Network PeeringNext-Gen IAD

Current Capabilities Future Opportunities

Hosted TelephonyDistributed Call CenterMobilityIM, Presence ManagementWiFi IntegrationHD Voice

Unified MessagingMultimedia Conferencing

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VoIP – Direct SIP IP Trunks

32

VoIP

> 100% Bandwidth Increase

20 – 30% Per Month Convergence Savings

tw telecom Network

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tw telecom

• tw telecom’s Track Record of Success Means…

• Financial Strength to Grow • Product and Service Innovation• Broad Fiber Optic Reach

We know your network.

But we also know your name

We know your network.

But we also know your name

34

Thank You