The Bellhaves Decision Matrix
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BellHaves Decision Matrix Project Manager:
Mike Haverhals
Executive Sponsor:
David Fraley
Project Request Subm. Date:
11.1.02
Criteria
Weight 100%
Raw Score (1-100)
Weighted Score
LongBoard Sylantro VocalData LongBoard Sylantro VocalData
Net Present Value
30%
85
85
95
25.5
25.5
28.5
Installation and Supportablility
30%
85
95
80
25.5
28.5
24
Features and Functionality
20%
85
90
95
17
18
19
Customer Satisfaction
20%
85
95
90
17
19
18
85
91
89.5
BellHaves Capital Request Project Manager:
Mike Haverhals
Executive Sponsor:
David Fraley
Project Request Subm. Date:
11.1.02 Project Description
The implementation of a Voice-over-Internet-Protocol (VoIP) system in a small to medium enterprise with the ability to expand to a larger enterprise.
Project Scope What are the objectives? To present a business case comparing 3 vendors of IP Centrex service and selecting one vendor's service for implementation based on an analysis of financial and service related matrices What is the benefit associated with the investment? (generate revenue, increase productivity, cost reduction, other) Turn PBX sales into Rboc Service annuity. Will this project require changes in current business processes? If yes, describe. No.
Link to Strategic Imperatives How does this project tie into strategic initiatives? It enables robust services at a minimal cost in comparison to existing carrier hosted PBX Centrex offerings. How does this project impact other business units? It will replace carrier hosted PBX systems.
Impact of Deferring or Not Approving Project Quantify the impact of project delay or non approval. Lost savings from expenses associated with use of carrier systems versus utilization of own network. Inability to realize enriched services to end users.
BellHaves Summary P&L ($000s)
LongBoard Depreciated value linked to rental rate. Financial Summary Initial Year 1 Year 2 Year 3
Capital Expenditures Hardware Computer Equipment Switching Phones Software Switching OSS/BSS Other Leasehold Improvements Total Capital
570 288
810 80 37 0 (1,785)
Year 4
Year 5
Year 6
Year 7
Year 8
0 1,024 1,250
249 778 3,100
206 1,080 4,032
163 1,643 5,899
130 2,160 7,725
458 2,826 10,075
937 6,752 12,420
0 0 15,420
36 60 60
2,058 0 305 0 (4,637)
1,602 0 303 0 (6,032)
1,780 0 477 0 (7,575)
2,237 0 688 0 (10,630)
2,697 0 946 0 (13,658)
3,284 0 1,257 0 (17,900)
7,636 0 3,276 0 (31,021)
0 0 0 0 (15,420)
36 48 36 120
Income/(Expense) Summary Revenue Expense EBITDA
na na na
3,925 (358) 3,567
17,030 (1,269) 15,940
36,368 (1,777) 34,777
58,544 (2,341) 56,407
86,403 (3,037) 83,602
121,886 (3,820) 118,339
166,173 (4,779) 161,708
222,393 (6,320) 216,439
EBITDA Depreciation/Amortization EBIT
na na na
3,567 (550) 3,017
15,940 (1,792) 14,148
34,777 (3,286) 31,491
56,407 (5,129) 51,278
83,602 (7,667) 75,935
118,339 (10,902) 107,437
161,708 (15,149) 146,559
216,439 (22,933) 193,506
27,202
45,777
69,944
100,439
130,687
201,019
Total Revenue Generated:
712,722
NPV Net Cashflows NPV ($Ms)
(1,785) $
Asset Life (Months)
(1,070)
Payback 9,908
54.8 Million Total Capital Costs:
(108,658)
BellHaves Subscriber Assumptions Year 1 (Avg. customer base for full year per switch)
LongBoard Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Switch 1 Switch 2 Switch 3 Switch 4 Switch 5 Switch 6 Switch 7 Switch 8 Switch 9 Switch 10 Total Subscribers
5,000
10,500 5,000 5,000
14,700 10,500 10,500 5,000
19,110 14,700 14,700 10,500 5,000
23,888 19,110 19,110 14,700 10,500 5,000
29,859 23,888 23,888 19,110 14,700 10,500 5,000
35,831 29,859 29,859 23,888 19,110 14,700 10,500 5,000
5,000
20,500
40,700
64,010
92,308
126,944
168,748
40,131 35,831 35,831 29,859 23,888 19,110 14,700 10,500 5,000 5,000 219,850
New Subscribers
5,000
15,500
20,200
23,310
28,298
34,637
41,803
51,103
BellHaves Investment Detail (Per Switch) Hardware ($000s) Computer Equipment Switching Software ($000s) Switching OSS/BSS Other
LongBoard Initial
570 288 810 80 37
Year 1
512 1,029 153
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
249 778
206 1,080
163 1,643
130 2,160
458 2,826
468 3,376
NA NA
1,602 303
1,780 477
2,237 688
2,697 946
3,284 1,257
3,818 1,638
NA NA NA
BellHaves Per Subscriber Pricing Assumptions
LongBoard Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Per Subscriber Installation Charge
50.00
51.75
53.56
55.44
57.38
59.38
61.46
63.61
Baseline service charge Replacement PBX Pricing Access charge (e.g., T1 or DSL) Phone Total
30.00 8.00 25.08 63.08
31.05 8.28 20.07 59.40
32.14 8.57 16.05 56.76
33.26 8.87 15.25 57.38
34.43 9.18 14.49 58.10
35.63 9.50 13.76 58.89
36.88 9.83 13.08 59.79
38.17 10.18 12.42 60.77
Baseline Premium (Must justify premium)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Rules based Call management Percent Utilization Average price
1.00 2% 0.02
1.04 4% 0.04
1.07 6% 0.06
1.11 6% 0.07
1.15 6% 0.07
1.19 6% 0.07
1.23 6% 0.07
1.27 6% 0.08
Presence Telephony managemnt Percent Utilization Average price
1.00 2% 0.02
1.04 4% 0.04
1.07 6% 0.06
1.11 6% 0.07
1.15 6% 0.07
1.19 6% 0.07
1.23 6% 0.07
1.27 6% 0.08
Outlook Telephony management Percent Utilization Average price
1.00 5% 0.05
1.04 10% 0.10
1.07 10% 0.11
1.11 10% 0.11
1.15 10% 0.11
1.19 10% 0.12
1.23 10% 0.12
1.27 10% 0.13
285.71 3% 8.57
295.71 5% 14.79
306.06 7% 21.42
316.77 7% 22.17
327.86 7% 22.95
339.33 7% 23.75
351.21 7% 24.58
363.50 7% 25.45
Conference Services Percent Utilization Average price Total Monthly Revenue
72
74
78
80
81
83
85
86
Annual revenues per subscriber ($s)
864
892
941
958
976
995
1,016
1,038
Annual revenues per subscriber ($000s)
0.86
0.89
0.94
0.96
0.98
0.99
1.02
1.04
Notes: 1. Annual inflation is assumed to 3.5%. 2. Markup on phone rental not to exceed a factor of 3.5x times depreciation value.
BellHaves Phone Purchase
LongBoard Initial
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Executive Set (15% of Units) Phone purchase price Depreciation value (Based on 60 months) Monthly rental value
450 7.50 26.25
441 7.35 25.73
432 7.20 25.21
424 7.06 24.71
415 6.92 24.21
407 6.78 23.73
399 6.64 23.25
391 6.51 22.79
Standard Set (85% of Units) Phone purchase price Depreciation value (Based on 60 months) Monthly rental value
175 2.92 10.21
172 2.86 10.00
168 2.80 9.80
165 2.75 9.61
161 2.69 9.42
158 2.64 9.23
155 2.58 9.04
152 2.53 8.86
Weighted Average Sets Phone purchase price Depreciation value (Based on 60 months) Monthly rental value
243 4.06 14.20
239 3.98 13.91
234 3.90 13.64
229 3.82 13.36
225 3.74 13.10
220 3.67 12.84
216 3.59 12.58
211 3.52 12.33
5,000 243.35 1,217
15,500 238.50 3,697
20,200 233.75 4,722
23,310 229.09 5,340
28,298 224.52 6,353
34,637 220.05 7,622
41,803 215.67 9,016
51,103 211.37 10,802
Phone capital expenditures $(000s) New Subscribers Phone Purchase Price Total ($000s)
BellHaves Investment Detail Switch 1 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 2 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 3 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 4 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 5 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 6 Hardware Computer Equipment
LongBoard Initial
Year 1
Year 2
Year 3
Year 4
570 288 810 80 37
0 512 1,029 0 153
0 512 1,029 0 153
249 778 1,602 0 303
206 1,080 1,780 0 477
163
Year 5
Year 6
Year 7
Year 8
Switching Software Switching OSS/BSS Other Switch 7 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 8 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 9 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 10 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Total Hardware Computer Equipment Switching Software Switching OSS/BSS Other
1,643 2,237 0 688
130 2,160 2,697 0 946
458 2,826 3,284 0 1,257
468 3,376 3,818 0 1,638
468 3,376 3,818 0 1,638
570 288
0 1,024
249 778
206 1,080
163 1,643
130 2,160
458 2,826
936 6,752
810 80 37
2,058 0 306
1,602 0 303
1,780 0 477
2,237 0 688
2,697 0 946
3,284 0 1,257
7,636 0 3,276
BellHaves Revenue Detail ($000s) Subscribers Service revenue Total revenue switch 1 Installation revenue Other Total
LongBoard Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
5,000 0.9 4,320
20,500 0.9 18,295
40,700 0.9 38,299
64,010 1.0 61,295
92,308 1.0 90,053
126,944 1.0 126,295
168,748 1.0 171,407
219,850 1.0 228,183
250
802
1,082
1,292
1,624
2,057
2,569
3,251
4,570
19,098
39,381
62,588
91,677
128,351
173,977
231,434
BellHaves Expense Detail ($000s) Maintenance Upgrades Incremental Personnel Sub-detail 6 Sub-detail 7 Sub-detail 8 Sub-detail 9 Sub-detail 10 Sub-detail 11 Sub-detail 12 Sub-detail 13 Sub-detail 14 Sub-detail 15 Sub-detail 16 Sub-detail 17 Sub-detail 18 Sub-detail 19 Sub-detail 20 Sub-detail 21 Sub-detail 22 Sub-detail 23 Sub-detail 24 Sub-detail 25 Total Maintenance & include 25 x 7 x 365
LongBoard Year 1 191 0 167 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 358
Year 2 825 0 444 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,269
Year 3 1,123 0 654 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,777
Year 4 1,472 0 869 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,341
Year 5 1,925 0 1,112 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,037
Year 6 2,459 0 1,361 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,820
Year 7 3,090 0 1,689 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4,779
Year 8 3,864 0 2,456 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6,320
BellHaves Depreciation Schedule ($000s) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Total
LongBoard Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
550
550 1,242
550 1,242 1,494
550 1,242 1,494 1,843
550 1,242 1,494 1,843 2,538
550 1,242 1,494 1,843 2,538 3,235
550 1,242 1,494 1,843 2,538 3,235 4,247
550
1,792
3,286
5,129
7,667
10,902
15,149
Year 8 550 1,242 1,494 1,843 2,538 3,235 4,247 7,784 22,933
BellHaves Summary P&L ($000s)
Sylantro
Initial Capital Expenditures Hardware Computer Equipment Switching Phones Software Switching OSS/BSS Other Leasehold Improvements Total Capital
Year 1
Financial Summary Year 2 Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
250 0 0
518 0 1,217
268 0 3,697
277 0 4,722
287 0 5,340
297 0 6,353
307 0 7,622
636 0 9,016
0 0 10,802
36 60 60
63 30 375 0 (718)
401 62 776 0 (2,974)
270 32 402 0 (4,669)
323 33 416 0 (5,771)
406 34 430 0 (6,498)
514 36 445 0 (7,646)
642 37 461 0 (9,069)
1,625 76 954 0 (12,308)
0 0 0 0 (10,802)
36 48 36 120
Income/(Expense) Summary Revenue Expense EBITDA
na na na
3,716 (250) 3,466
16,321 (532) 15,789
32,372 (885) 31,487
51,462 (1,291) 50,170
75,569 (1,781) 73,788
106,111 (2,374) 103,737
144,198 (3,256) 140,942
192,320 (3,921) 188,399
EBITDA Depreciation/Amortization EBIT
na na na
3,466 (237) 3,229
15,789 (1,061) 14,728
31,487 (2,122) 29,365
50,170 (3,413) 46,757
73,788 (4,864) 68,924
103,737 (6,562) 97,175
140,942 (8,566) 132,376
188,399 (11,460) 176,939
11,120
25,716
43,673
66,142
94,668
128,634
177,597
Total Revenue Generated:
622,068
NPV Net Cashflows NPV ($Ms)
(718) $
Asset Life (Months)
Payback 492
53.7 Million Total Capital Costs:
(60,453)
BellHaves Subscriber Assumptions Year 1 (Avg. customer base for full year per switch)
Sylantro Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Switch 1 Switch 2 Switch 3 Switch 4 Switch 5 Switch 6 Switch 7 Switch 8 Switch 9 Switch 10 Total Subscribers
5,000
10,500 5,000 5,000
14,700 10,500 10,500 5,000
19,110 14,700 14,700 10,500 5,000
23,888 19,110 19,110 14,700 10,500 5,000
29,859 23,888 23,888 19,110 14,700 10,500 5,000
35,831 29,859 29,859 23,888 19,110 14,700 10,500 5,000
5,000
20,500
40,700
64,010
92,308
126,944
168,748
40,131 35,831 35,831 29,859 23,888 19,110 14,700 10,500 5,000 5,000 219,850
New Subscribers
5,000
15,500
20,200
23,310
28,298
34,637
41,803
51,103
BellHaves Investment Detail (Per Switch) Hardware ($000s) Computer Equipment Switching Software ($000s) Switching OSS/BSS Other
Sylantro Initial
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
250 -
259 -
268 -
277 -
287 -
297 -
307 -
318 -
NA NA
63 30 375
201 31 388
270 32 402
323 33 416
406 34 430
514 36 445
642 37 461
813 38 477
NA NA NA
BellHaves Per Subscriber Pricing Assumptions
Sylantro Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Per Subscriber Installation Charge
70.00
72.45
74.99
77.61
80.33
83.14
86.05
89.06
Baseline service charge Replacement PBX Pricing Access charge (e.g., T1 or DSL) Phone Total
30.00 8.00 14.20 52.20
31.05 8.28 13.91 53.24
32.14 8.57 13.64 54.34
33.26 8.87 13.36 55.49
34.43 9.18 13.10 56.70
35.63 9.50 12.84 57.97
36.88 9.83 12.58 59.29
38.17 10.18 12.33 60.68
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
ComCierge Percent Utilization Average price
15.00 9% 1.35
15.53 6% 0.93
16.07 6% 0.96
16.63 6% 1.00
17.21 6% 1.03
17.82 6% 1.07
18.44 6% 1.11
19.08 6% 1.15
ComMerchant Percent Utilization Average price
25.00 5% 1.25
25.88 9% 2.33
26.78 9% 2.41
27.72 9% 2.49
28.69 9% 2.58
29.69 9% 2.67
30.73 9% 2.77
31.81 9% 2.86
ComConsole Percent Utilization Average price
40.00 2% 0.80
41.40 4% 1.66
42.85 4% 1.71
44.35 4% 1.77
45.90 4% 1.84
47.51 4% 1.90
49.17 4% 1.97
50.89 4% 2.04
EMS Percent Utilization Average price
50.00 1% 0.50
51.75 7% 3.62
53.56 7% 3.75
55.44 7% 3.88
57.38 7% 4.02
59.38 7% 4.16
61.46 7% 4.30
63.61 7% 4.45
Baseline Premium (Must justify premium)
Total Monthly Revenue
56
62
63
65
66
68
69
71
Annual revenues per subscriber ($s)
673
741
758
776
794
813
833
854
Annual revenues per subscriber ($000s)
0.67
0.74
0.76
0.78
0.79
0.81
0.83
0.85
Notes: 1. Annual inflation is assumed to 3.5%. 2. Markup on phone rental not to exceed a factor of 3.5x times depreciation value. 3. Due to the competitive nature of the industry, Sylantro's value added options are only estimated prices since actual prices were not disclosed.
BellHaves Phone Purchase
Sylantro Initial
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Executive Set (15% of Units) Phone purchase price Depreciation value (Based on 60 months) Monthly rental value
450 7.50 26.25
441 7.35 25.73
432 7.20 25.21
424 7.06 24.71
415 6.92 24.21
407 6.78 23.73
399 6.64 23.25
391 6.51 22.79
Standard Set (85% of Units) Phone purchase price Depreciation value (Based on 60 months) Monthly rental value
175 2.92 10.21
172 2.86 10.00
168 2.80 9.80
165 2.75 9.61
161 2.69 9.42
158 2.64 9.23
155 2.58 9.04
152 2.53 8.86
Weighted Average Sets Phone purchase price Depreciation value (Based on 60 months) Monthly rental value
243 4.06 14.20
239 3.98 13.91
234 3.90 13.64
229 3.82 13.36
225 3.74 13.10
220 3.67 12.84
216 3.59 12.58
211 3.52 12.33
5,000 243.35 1,217
15,500 238.50 3,697
20,200 233.75 4,722
23,310 229.09 5,340
28,298 224.52 6,353
34,637 220.05 7,622
41,803 215.67 9,016
51,103 211.37 10,802
Phone capital expenditures $(000s) New Subscribers Phone Purchase Price Total ($000s)
BellHaves Investment Detail Switch 1 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 2 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 3 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 4 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 5 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 6 Hardware Computer Equipment
Sylantro Initial
Year 1
Year 2
Year 3
Year 4
250 0 63 30 375
259 0 201 31 388
259 0 201 31 388
268 0 270 32 402
277 0 323 33 416
287
Year 5
Year 6
Year 7
Year 8
Switching Software Switching OSS/BSS Other Switch 7 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 8 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 9 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 10 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Total Hardware Computer Equipment Switching Software Switching OSS/BSS Other
0 406 34 430
297 0 514 36 445
307 0 642 37 461
318 0 813 38 477
318 0 813 38 477
250 0
518 0
268 0
277 0
287 0
297 0
307 0
636 0
63 30 375
401 62 776
270 32 402
323 33 416
406 34 430
514 36 445
642 37 461
1,625 76 954
BellHaves Revenue Detail ($000s) Subscribers Service revenue Total revenue switch 1 Installation revenue Other Total
Sylantro Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
5,000 0.7 3,366
20,500 0.7 15,198
40,700 0.8 30,857
64,010 0.8 49,653
92,308 0.8 73,296
126,944 0.8 103,231
168,748 0.8 140,601
219,850 0.9 187,769
350
1,123
1,515
1,809
2,273
2,880
3,597
4,551
3,716
16,321
32,372
51,462
75,569
106,111
144,198
192,320
BellHaves Expense Detail ($000s) Maintenance Upgrades Incremental Personnel Sub-detail 6 Sub-detail 7 Sub-detail 8 Sub-detail 9 Sub-detail 10 Sub-detail 11 Sub-detail 12 Sub-detail 13 Sub-detail 14 Sub-detail 15 Sub-detail 16 Sub-detail 17 Sub-detail 18 Sub-detail 19 Sub-detail 20 Sub-detail 21 Sub-detail 22 Sub-detail 23 Sub-detail 24 Sub-detail 25 Total
Sylantro Year 1 185 0 65 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 250
Year 2 265 0 267 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 532
Year 3 355 0 529 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 885
Year 4 459 0 832 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,291
Year 5 581 0 1,200 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,781
Year 6 723 0 1,650 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,374
Year 7 1,063 0 2,194 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,256
Year 8 1,063 0 2,858 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,921
BellHaves Depreciation Schedule ($000s) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Total
Sylantro Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
237
237 824
237 824 1,061
237 824 1,061 1,291
237 824 1,061 1,291 1,451
237 824 1,061 1,291 1,451 1,698
237 824 1,061 1,291 1,451 1,698 2,004
237
1,061
2,122
3,413
4,864
6,562
8,566
Year 8 237 824 1,061 1,291 1,451 1,698 2,004 2,894 11,460
BellHaves Summary P&L ($000s)
VocalData
Initial Capital Expenditures Hardware Computer Equipment Switching Phones Software Switching OSS/BSS Other Leasehold Improvements Total Capital
Year 1
Financial Summary Year 2 Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Asset Life (Months)
606 1,250 0
550 2,750 1,217
285 1,050 3,697
295 1,103 4,722
305 1,194 5,340
316 1,493 6,353
327 1,493 7,622
676 2,150 9,016
0 0 10,802
36 60 60
4,086 0 149 0 (6,091)
626 0 328 0 (5,471)
344 0 125 0 (5,500)
263 0 131 0 (6,513)
276 0 142 0 (7,257)
299 0 178 0 (8,639)
373 0 178 0 (9,992)
746 0 256 0 (12,844)
0 0 0 0 (10,802)
36 48 36 120
Revenue Expense EBITDA
na na na
4,870 (1,062) 3,808
20,215 (2,617) 17,598
40,599 (3,252) 37,347
65,049 (3,957) 61,092
95,970 (4,803) 91,168
135,250 (5,761) 129,489
184,389 (7,102) 177,287
246,592 (7,869) 238,723
EBITDA Depreciation/Amortization EBIT
na na na
3,808 (1,864) 1,944
17,598 (3,159) 14,439
37,347 (4,360) 32,987
61,092 (5,754) 55,338
91,168 (7,302) 83,866
129,489 (9,135) 120,354
177,287 (11,251) 166,036
238,723 (14,043) 224,680
(6,091)
(1,662)
30,834
53,835
82,529
119,497
164,444
227,922
Total Revenue Generated:
792,935
Income/(Expense) Summary
NPV Net Cashflows NPV ($Ms)
$
Payback 12,098
61.7 Million Total Capital Costs:
(73,109)
BellHaves Subscriber Assumptions Year 1 (Avg. customer base for full year per switch)
VocalData Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Switch 1 Switch 2 Switch 3 Switch 4 Switch 5 Switch 6 Switch 7 Switch 8 Switch 9 Switch 10 Total Subscribers
5,000
10,500 5,000 5,000
14,700 10,500 10,500 5,000
19,110 14,700 14,700 10,500 5,000
23,888 19,110 19,110 14,700 10,500 5,000
29,859 23,888 23,888 19,110 14,700 10,500 5,000
35,831 29,859 29,859 23,888 19,110 14,700 10,500 5,000
5,000
20,500
40,700
64,010
92,308
126,944
168,748
40,131 35,831 35,831 29,859 23,888 19,110 14,700 10,500 5,000 5,000 219,850
New Subscribers
5,000
15,500
20,200
23,310
28,298
34,637
41,803
51,103
BellHaves Investment Detail (Per Switch) Hardware ($000s) Computer Equipment Switching Software ($000s) Switching OSS/BSS Voicemail
VocalData Initial
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
606 1,250
275 1,375
285 1,050
295 1,103
305 1,194
316 1,493
327 1,493
338 1,075
NA NA
4,086 149
313 164
344 125
263 131
276 142
299 178
373 178
373 128
NA NA NA
BellHaves Per Subscriber Pricing Assumptions
VocalData Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Per Subscriber Installation Charge
50.00
51.75
53.56
55.44
57.38
59.38
61.46
63.61
Baseline service charge Replacement PBX Pricing Access charge (e.g., T1 or DSL) Phone Total
30.00 8.00 14.20 52.20
31.05 8.28 13.91 53.24
32.14 8.57 13.64 54.34
33.26 8.87 13.36 55.49
34.43 9.18 13.10 56.70
35.63 9.50 12.84 57.97
36.88 9.83 12.58 59.29
38.17 10.18 12.33 60.68
Baseline Premium (3-way,call block,callfw,speed dial, etc.) Call Waiting, etc. Percent Utilization Average price
14.95
15.47
16.01
16.58
17.16
17.76
18.38
19.02
24.95 6% 1.50
25.82 6% 1.55
26.73 6% 1.60
27.66 6% 1.66
28.63 6% 1.72
29.63 6% 1.78
30.67 6% 1.84
31.74 6% 1.90
Conference Calling, etc. Percent Utilization Average price
34.95 9% 3.15
36.17 9% 3.26
37.44 9% 3.37
38.75 9% 3.49
40.11 9% 3.61
41.51 9% 3.74
42.96 9% 3.87
44.47 9% 4.00
Anywhere V-mail, etc. Percent Utilization Average price
42.95 4% 1.72
44.45 4% 1.78
46.01 4% 1.84
47.62 4% 1.90
49.29 4% 1.97
51.01 4% 2.04
52.80 4% 2.11
54.64 4% 2.19
Web Mobility, etc. Percent Utilization Average price
49.95 7% 3.50
51.70 7% 3.62
53.51 7% 3.75
55.38 7% 3.88
57.32 7% 4.01
59.32 7% 4.15
61.40 7% 4.30
63.55 7% 4.45
Road Warrior Pkg., etc. Percent Utilization Average price
69.95 7% 4.90
72.40 7% 5.07
74.93 7% 5.25
77.55 7% 5.43
80.27 7% 5.62
83.08 7% 5.82
85.99 7% 6.02
89.00 7% 6.23
Total Monthly Revenue
77
79
81
83
85
87
90
92
Annual revenues per subscriber ($s)
924
947
971
996
1,022
1,049
1,077
1,107
Annual revenues per subscriber ($000s)
0.92
0.95
0.97
1.00
1.02
1.05
1.08
1.11
Notes: 1. Annual inflation is assumed to 3.5%. 2. Markup on phone rental not to exceed a factor of 3.5x times depreciation value.
BellHaves Phone Purchase
VocalData Initial
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Executive Set (15% of Units) Phone purchase price Depreciation value (Based on 60 months) Monthly rental value
450 7.50 26.25
441 7.35 25.73
432 7.20 25.21
424 7.06 24.71
415 6.92 24.21
407 6.78 23.73
399 6.64 23.25
391 6.51 22.79
Standard Set (85% of Units) Phone purchase price Depreciation value (Based on 60 months) Monthly rental value
175 2.92 10.21
172 2.86 10.00
168 2.80 9.80
165 2.75 9.61
161 2.69 9.42
158 2.64 9.23
155 2.58 9.04
152 2.53 8.86
Weighted Average Sets Phone purchase price Depreciation value (Based on 60 months) Monthly rental value
243 4.06 14.20
239 3.98 13.91
234 3.90 13.64
229 3.82 13.36
225 3.74 13.10
220 3.67 12.84
216 3.59 12.58
211 3.52 12.33
5,000 243.35 1,217
15,500 238.50 3,697
20,200 233.75 4,722
23,310 229.09 5,340
28,298 224.52 6,353
34,637 220.05 7,622
41,803 215.67 9,016
51,103 211.37 10,802
Phone capital expenditures $(000s) New Subscribers Phone Purchase Price Total ($000s)
BellHaves Investment Detail Switch 1 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 2 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 3 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 4 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 5 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 6 Hardware Computer Equipment
VocalData Initial
Year 1
Year 2
Year 3
Year 4
606 1,250 4,086 0 149
275 1,375 313 0 164
275 1,375 313 0 164
285 1,050 344 0 125
295 1,103 263 0 131
305
Year 5
Year 6
Year 7
Year 8
Switching Software Switching OSS/BSS Other Switch 7 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 8 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 9 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 10 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Total Hardware Computer Equipment Switching Software Switching OSS/BSS Other
1,194 276 0 142
316 1,493 299 0 178
327 1,493 373 0 178
338 1,075 373 0 128
338 1,075 373 0 128
606 1,250
550 2,750
285 1,050
295 1,103
305 1,194
316 1,493
327 1,493
676 2,150
4,086 0 149
626 0 328
344 0 125
263 0 131
276 0 142
299 0 178
373 0 178
746 0 256
BellHaves Revenue Detail ($000s) Subscribers Service revenue Total revenue switch 1 Installation revenue Other Total
VocalData Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
5,000 0.9 4,620
20,500 0.9 19,413
40,700 1.0 39,517
64,010 1.0 63,757
92,308 1.0 94,347
126,944 1.0 133,193
168,748 1.1 181,820
219,850 1.1 243,341
250
802
1,082
1,292
1,624
2,057
2,569
3,251
4,870
20,215
40,599
65,049
95,970
135,250
184,389
246,592
BellHaves Expense Detail ($000s) Maintenance Upgrades Incremental Personnel Sub-detail 6 Sub-detail 7 Sub-detail 8 Sub-detail 9 Sub-detail 10 Sub-detail 11 Sub-detail 12 Sub-detail 13 Sub-detail 14 Sub-detail 15 Sub-detail 16 Sub-detail 17 Sub-detail 18 Sub-detail 19 Sub-detail 20 Sub-detail 21 Sub-detail 22 Sub-detail 23 Sub-detail 24 Sub-detail 25 Total
VocalData Year 1 987 0 75 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,062
Year 2 2,309 0 308 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,617
Year 3 2,641 0 611 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,252
Year 4 2,996 0 960 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,957
Year 5 3,418 0 1,385 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4,803
Year 6 3,856 0 1,904 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5,761
Year 7 4,571 0 2,531 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7,102
Year 8 4,571 0 3,298 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7,869
BellHaves Depreciation Schedule ($000s) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
VocalData Year 1 1,864
Year 2 1,864 1,295
Year 3 1,864 1,295 1,201
Year 4 1,864 1,295 1,201 1,394
Year 5 1,864 1,295 1,201 1,394 1,548
Year 6 1,864 1,295 1,201 1,394 1,548 1,833
Year 7 1,864 1,295 1,201 1,394 1,548 1,833
Year 8 1,864 1,295 1,201 1,394 1,548 1,833
Mike Haverhals
Executive Sponsor:
David Fraley
Project Request Subm. Date:
11.1.02
Criteria
Weight 100%
Raw Score (1-100)
Weighted Score
LongBoard Sylantro VocalData LongBoard Sylantro VocalData
Net Present Value
30%
85
85
95
25.5
25.5
28.5
Installation and Supportablility
30%
85
95
80
25.5
28.5
24
Features and Functionality
20%
85
90
95
17
18
19
Customer Satisfaction
20%
85
95
90
17
19
18
85
91
89.5
BellHaves Capital Request Project Manager:
Mike Haverhals
Executive Sponsor:
David Fraley
Project Request Subm. Date:
11.1.02 Project Description
The implementation of a Voice-over-Internet-Protocol (VoIP) system in a small to medium enterprise with the ability to expand to a larger enterprise.
Project Scope What are the objectives? To present a business case comparing 3 vendors of IP Centrex service and selecting one vendor's service for implementation based on an analysis of financial and service related matrices What is the benefit associated with the investment? (generate revenue, increase productivity, cost reduction, other) Turn PBX sales into Rboc Service annuity. Will this project require changes in current business processes? If yes, describe. No.
Link to Strategic Imperatives How does this project tie into strategic initiatives? It enables robust services at a minimal cost in comparison to existing carrier hosted PBX Centrex offerings. How does this project impact other business units? It will replace carrier hosted PBX systems.
Impact of Deferring or Not Approving Project Quantify the impact of project delay or non approval. Lost savings from expenses associated with use of carrier systems versus utilization of own network. Inability to realize enriched services to end users.
BellHaves Summary P&L ($000s)
LongBoard Depreciated value linked to rental rate. Financial Summary Initial Year 1 Year 2 Year 3
Capital Expenditures Hardware Computer Equipment Switching Phones Software Switching OSS/BSS Other Leasehold Improvements Total Capital
570 288
810 80 37 0 (1,785)
Year 4
Year 5
Year 6
Year 7
Year 8
0 1,024 1,250
249 778 3,100
206 1,080 4,032
163 1,643 5,899
130 2,160 7,725
458 2,826 10,075
937 6,752 12,420
0 0 15,420
36 60 60
2,058 0 305 0 (4,637)
1,602 0 303 0 (6,032)
1,780 0 477 0 (7,575)
2,237 0 688 0 (10,630)
2,697 0 946 0 (13,658)
3,284 0 1,257 0 (17,900)
7,636 0 3,276 0 (31,021)
0 0 0 0 (15,420)
36 48 36 120
Income/(Expense) Summary Revenue Expense EBITDA
na na na
3,925 (358) 3,567
17,030 (1,269) 15,940
36,368 (1,777) 34,777
58,544 (2,341) 56,407
86,403 (3,037) 83,602
121,886 (3,820) 118,339
166,173 (4,779) 161,708
222,393 (6,320) 216,439
EBITDA Depreciation/Amortization EBIT
na na na
3,567 (550) 3,017
15,940 (1,792) 14,148
34,777 (3,286) 31,491
56,407 (5,129) 51,278
83,602 (7,667) 75,935
118,339 (10,902) 107,437
161,708 (15,149) 146,559
216,439 (22,933) 193,506
27,202
45,777
69,944
100,439
130,687
201,019
Total Revenue Generated:
712,722
NPV Net Cashflows NPV ($Ms)
(1,785) $
Asset Life (Months)
(1,070)
Payback 9,908
54.8 Million Total Capital Costs:
(108,658)
BellHaves Subscriber Assumptions Year 1 (Avg. customer base for full year per switch)
LongBoard Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Switch 1 Switch 2 Switch 3 Switch 4 Switch 5 Switch 6 Switch 7 Switch 8 Switch 9 Switch 10 Total Subscribers
5,000
10,500 5,000 5,000
14,700 10,500 10,500 5,000
19,110 14,700 14,700 10,500 5,000
23,888 19,110 19,110 14,700 10,500 5,000
29,859 23,888 23,888 19,110 14,700 10,500 5,000
35,831 29,859 29,859 23,888 19,110 14,700 10,500 5,000
5,000
20,500
40,700
64,010
92,308
126,944
168,748
40,131 35,831 35,831 29,859 23,888 19,110 14,700 10,500 5,000 5,000 219,850
New Subscribers
5,000
15,500
20,200
23,310
28,298
34,637
41,803
51,103
BellHaves Investment Detail (Per Switch) Hardware ($000s) Computer Equipment Switching Software ($000s) Switching OSS/BSS Other
LongBoard Initial
570 288 810 80 37
Year 1
512 1,029 153
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
249 778
206 1,080
163 1,643
130 2,160
458 2,826
468 3,376
NA NA
1,602 303
1,780 477
2,237 688
2,697 946
3,284 1,257
3,818 1,638
NA NA NA
BellHaves Per Subscriber Pricing Assumptions
LongBoard Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Per Subscriber Installation Charge
50.00
51.75
53.56
55.44
57.38
59.38
61.46
63.61
Baseline service charge Replacement PBX Pricing Access charge (e.g., T1 or DSL) Phone Total
30.00 8.00 25.08 63.08
31.05 8.28 20.07 59.40
32.14 8.57 16.05 56.76
33.26 8.87 15.25 57.38
34.43 9.18 14.49 58.10
35.63 9.50 13.76 58.89
36.88 9.83 13.08 59.79
38.17 10.18 12.42 60.77
Baseline Premium (Must justify premium)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Rules based Call management Percent Utilization Average price
1.00 2% 0.02
1.04 4% 0.04
1.07 6% 0.06
1.11 6% 0.07
1.15 6% 0.07
1.19 6% 0.07
1.23 6% 0.07
1.27 6% 0.08
Presence Telephony managemnt Percent Utilization Average price
1.00 2% 0.02
1.04 4% 0.04
1.07 6% 0.06
1.11 6% 0.07
1.15 6% 0.07
1.19 6% 0.07
1.23 6% 0.07
1.27 6% 0.08
Outlook Telephony management Percent Utilization Average price
1.00 5% 0.05
1.04 10% 0.10
1.07 10% 0.11
1.11 10% 0.11
1.15 10% 0.11
1.19 10% 0.12
1.23 10% 0.12
1.27 10% 0.13
285.71 3% 8.57
295.71 5% 14.79
306.06 7% 21.42
316.77 7% 22.17
327.86 7% 22.95
339.33 7% 23.75
351.21 7% 24.58
363.50 7% 25.45
Conference Services Percent Utilization Average price Total Monthly Revenue
72
74
78
80
81
83
85
86
Annual revenues per subscriber ($s)
864
892
941
958
976
995
1,016
1,038
Annual revenues per subscriber ($000s)
0.86
0.89
0.94
0.96
0.98
0.99
1.02
1.04
Notes: 1. Annual inflation is assumed to 3.5%. 2. Markup on phone rental not to exceed a factor of 3.5x times depreciation value.
BellHaves Phone Purchase
LongBoard Initial
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Executive Set (15% of Units) Phone purchase price Depreciation value (Based on 60 months) Monthly rental value
450 7.50 26.25
441 7.35 25.73
432 7.20 25.21
424 7.06 24.71
415 6.92 24.21
407 6.78 23.73
399 6.64 23.25
391 6.51 22.79
Standard Set (85% of Units) Phone purchase price Depreciation value (Based on 60 months) Monthly rental value
175 2.92 10.21
172 2.86 10.00
168 2.80 9.80
165 2.75 9.61
161 2.69 9.42
158 2.64 9.23
155 2.58 9.04
152 2.53 8.86
Weighted Average Sets Phone purchase price Depreciation value (Based on 60 months) Monthly rental value
243 4.06 14.20
239 3.98 13.91
234 3.90 13.64
229 3.82 13.36
225 3.74 13.10
220 3.67 12.84
216 3.59 12.58
211 3.52 12.33
5,000 243.35 1,217
15,500 238.50 3,697
20,200 233.75 4,722
23,310 229.09 5,340
28,298 224.52 6,353
34,637 220.05 7,622
41,803 215.67 9,016
51,103 211.37 10,802
Phone capital expenditures $(000s) New Subscribers Phone Purchase Price Total ($000s)
BellHaves Investment Detail Switch 1 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 2 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 3 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 4 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 5 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 6 Hardware Computer Equipment
LongBoard Initial
Year 1
Year 2
Year 3
Year 4
570 288 810 80 37
0 512 1,029 0 153
0 512 1,029 0 153
249 778 1,602 0 303
206 1,080 1,780 0 477
163
Year 5
Year 6
Year 7
Year 8
Switching Software Switching OSS/BSS Other Switch 7 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 8 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 9 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 10 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Total Hardware Computer Equipment Switching Software Switching OSS/BSS Other
1,643 2,237 0 688
130 2,160 2,697 0 946
458 2,826 3,284 0 1,257
468 3,376 3,818 0 1,638
468 3,376 3,818 0 1,638
570 288
0 1,024
249 778
206 1,080
163 1,643
130 2,160
458 2,826
936 6,752
810 80 37
2,058 0 306
1,602 0 303
1,780 0 477
2,237 0 688
2,697 0 946
3,284 0 1,257
7,636 0 3,276
BellHaves Revenue Detail ($000s) Subscribers Service revenue Total revenue switch 1 Installation revenue Other Total
LongBoard Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
5,000 0.9 4,320
20,500 0.9 18,295
40,700 0.9 38,299
64,010 1.0 61,295
92,308 1.0 90,053
126,944 1.0 126,295
168,748 1.0 171,407
219,850 1.0 228,183
250
802
1,082
1,292
1,624
2,057
2,569
3,251
4,570
19,098
39,381
62,588
91,677
128,351
173,977
231,434
BellHaves Expense Detail ($000s) Maintenance Upgrades Incremental Personnel Sub-detail 6 Sub-detail 7 Sub-detail 8 Sub-detail 9 Sub-detail 10 Sub-detail 11 Sub-detail 12 Sub-detail 13 Sub-detail 14 Sub-detail 15 Sub-detail 16 Sub-detail 17 Sub-detail 18 Sub-detail 19 Sub-detail 20 Sub-detail 21 Sub-detail 22 Sub-detail 23 Sub-detail 24 Sub-detail 25 Total Maintenance & include 25 x 7 x 365
LongBoard Year 1 191 0 167 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 358
Year 2 825 0 444 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,269
Year 3 1,123 0 654 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,777
Year 4 1,472 0 869 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,341
Year 5 1,925 0 1,112 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,037
Year 6 2,459 0 1,361 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,820
Year 7 3,090 0 1,689 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4,779
Year 8 3,864 0 2,456 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6,320
BellHaves Depreciation Schedule ($000s) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Total
LongBoard Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
550
550 1,242
550 1,242 1,494
550 1,242 1,494 1,843
550 1,242 1,494 1,843 2,538
550 1,242 1,494 1,843 2,538 3,235
550 1,242 1,494 1,843 2,538 3,235 4,247
550
1,792
3,286
5,129
7,667
10,902
15,149
Year 8 550 1,242 1,494 1,843 2,538 3,235 4,247 7,784 22,933
BellHaves Summary P&L ($000s)
Sylantro
Initial Capital Expenditures Hardware Computer Equipment Switching Phones Software Switching OSS/BSS Other Leasehold Improvements Total Capital
Year 1
Financial Summary Year 2 Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
250 0 0
518 0 1,217
268 0 3,697
277 0 4,722
287 0 5,340
297 0 6,353
307 0 7,622
636 0 9,016
0 0 10,802
36 60 60
63 30 375 0 (718)
401 62 776 0 (2,974)
270 32 402 0 (4,669)
323 33 416 0 (5,771)
406 34 430 0 (6,498)
514 36 445 0 (7,646)
642 37 461 0 (9,069)
1,625 76 954 0 (12,308)
0 0 0 0 (10,802)
36 48 36 120
Income/(Expense) Summary Revenue Expense EBITDA
na na na
3,716 (250) 3,466
16,321 (532) 15,789
32,372 (885) 31,487
51,462 (1,291) 50,170
75,569 (1,781) 73,788
106,111 (2,374) 103,737
144,198 (3,256) 140,942
192,320 (3,921) 188,399
EBITDA Depreciation/Amortization EBIT
na na na
3,466 (237) 3,229
15,789 (1,061) 14,728
31,487 (2,122) 29,365
50,170 (3,413) 46,757
73,788 (4,864) 68,924
103,737 (6,562) 97,175
140,942 (8,566) 132,376
188,399 (11,460) 176,939
11,120
25,716
43,673
66,142
94,668
128,634
177,597
Total Revenue Generated:
622,068
NPV Net Cashflows NPV ($Ms)
(718) $
Asset Life (Months)
Payback 492
53.7 Million Total Capital Costs:
(60,453)
BellHaves Subscriber Assumptions Year 1 (Avg. customer base for full year per switch)
Sylantro Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Switch 1 Switch 2 Switch 3 Switch 4 Switch 5 Switch 6 Switch 7 Switch 8 Switch 9 Switch 10 Total Subscribers
5,000
10,500 5,000 5,000
14,700 10,500 10,500 5,000
19,110 14,700 14,700 10,500 5,000
23,888 19,110 19,110 14,700 10,500 5,000
29,859 23,888 23,888 19,110 14,700 10,500 5,000
35,831 29,859 29,859 23,888 19,110 14,700 10,500 5,000
5,000
20,500
40,700
64,010
92,308
126,944
168,748
40,131 35,831 35,831 29,859 23,888 19,110 14,700 10,500 5,000 5,000 219,850
New Subscribers
5,000
15,500
20,200
23,310
28,298
34,637
41,803
51,103
BellHaves Investment Detail (Per Switch) Hardware ($000s) Computer Equipment Switching Software ($000s) Switching OSS/BSS Other
Sylantro Initial
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
250 -
259 -
268 -
277 -
287 -
297 -
307 -
318 -
NA NA
63 30 375
201 31 388
270 32 402
323 33 416
406 34 430
514 36 445
642 37 461
813 38 477
NA NA NA
BellHaves Per Subscriber Pricing Assumptions
Sylantro Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Per Subscriber Installation Charge
70.00
72.45
74.99
77.61
80.33
83.14
86.05
89.06
Baseline service charge Replacement PBX Pricing Access charge (e.g., T1 or DSL) Phone Total
30.00 8.00 14.20 52.20
31.05 8.28 13.91 53.24
32.14 8.57 13.64 54.34
33.26 8.87 13.36 55.49
34.43 9.18 13.10 56.70
35.63 9.50 12.84 57.97
36.88 9.83 12.58 59.29
38.17 10.18 12.33 60.68
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
ComCierge Percent Utilization Average price
15.00 9% 1.35
15.53 6% 0.93
16.07 6% 0.96
16.63 6% 1.00
17.21 6% 1.03
17.82 6% 1.07
18.44 6% 1.11
19.08 6% 1.15
ComMerchant Percent Utilization Average price
25.00 5% 1.25
25.88 9% 2.33
26.78 9% 2.41
27.72 9% 2.49
28.69 9% 2.58
29.69 9% 2.67
30.73 9% 2.77
31.81 9% 2.86
ComConsole Percent Utilization Average price
40.00 2% 0.80
41.40 4% 1.66
42.85 4% 1.71
44.35 4% 1.77
45.90 4% 1.84
47.51 4% 1.90
49.17 4% 1.97
50.89 4% 2.04
EMS Percent Utilization Average price
50.00 1% 0.50
51.75 7% 3.62
53.56 7% 3.75
55.44 7% 3.88
57.38 7% 4.02
59.38 7% 4.16
61.46 7% 4.30
63.61 7% 4.45
Baseline Premium (Must justify premium)
Total Monthly Revenue
56
62
63
65
66
68
69
71
Annual revenues per subscriber ($s)
673
741
758
776
794
813
833
854
Annual revenues per subscriber ($000s)
0.67
0.74
0.76
0.78
0.79
0.81
0.83
0.85
Notes: 1. Annual inflation is assumed to 3.5%. 2. Markup on phone rental not to exceed a factor of 3.5x times depreciation value. 3. Due to the competitive nature of the industry, Sylantro's value added options are only estimated prices since actual prices were not disclosed.
BellHaves Phone Purchase
Sylantro Initial
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Executive Set (15% of Units) Phone purchase price Depreciation value (Based on 60 months) Monthly rental value
450 7.50 26.25
441 7.35 25.73
432 7.20 25.21
424 7.06 24.71
415 6.92 24.21
407 6.78 23.73
399 6.64 23.25
391 6.51 22.79
Standard Set (85% of Units) Phone purchase price Depreciation value (Based on 60 months) Monthly rental value
175 2.92 10.21
172 2.86 10.00
168 2.80 9.80
165 2.75 9.61
161 2.69 9.42
158 2.64 9.23
155 2.58 9.04
152 2.53 8.86
Weighted Average Sets Phone purchase price Depreciation value (Based on 60 months) Monthly rental value
243 4.06 14.20
239 3.98 13.91
234 3.90 13.64
229 3.82 13.36
225 3.74 13.10
220 3.67 12.84
216 3.59 12.58
211 3.52 12.33
5,000 243.35 1,217
15,500 238.50 3,697
20,200 233.75 4,722
23,310 229.09 5,340
28,298 224.52 6,353
34,637 220.05 7,622
41,803 215.67 9,016
51,103 211.37 10,802
Phone capital expenditures $(000s) New Subscribers Phone Purchase Price Total ($000s)
BellHaves Investment Detail Switch 1 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 2 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 3 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 4 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 5 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 6 Hardware Computer Equipment
Sylantro Initial
Year 1
Year 2
Year 3
Year 4
250 0 63 30 375
259 0 201 31 388
259 0 201 31 388
268 0 270 32 402
277 0 323 33 416
287
Year 5
Year 6
Year 7
Year 8
Switching Software Switching OSS/BSS Other Switch 7 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 8 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 9 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 10 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Total Hardware Computer Equipment Switching Software Switching OSS/BSS Other
0 406 34 430
297 0 514 36 445
307 0 642 37 461
318 0 813 38 477
318 0 813 38 477
250 0
518 0
268 0
277 0
287 0
297 0
307 0
636 0
63 30 375
401 62 776
270 32 402
323 33 416
406 34 430
514 36 445
642 37 461
1,625 76 954
BellHaves Revenue Detail ($000s) Subscribers Service revenue Total revenue switch 1 Installation revenue Other Total
Sylantro Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
5,000 0.7 3,366
20,500 0.7 15,198
40,700 0.8 30,857
64,010 0.8 49,653
92,308 0.8 73,296
126,944 0.8 103,231
168,748 0.8 140,601
219,850 0.9 187,769
350
1,123
1,515
1,809
2,273
2,880
3,597
4,551
3,716
16,321
32,372
51,462
75,569
106,111
144,198
192,320
BellHaves Expense Detail ($000s) Maintenance Upgrades Incremental Personnel Sub-detail 6 Sub-detail 7 Sub-detail 8 Sub-detail 9 Sub-detail 10 Sub-detail 11 Sub-detail 12 Sub-detail 13 Sub-detail 14 Sub-detail 15 Sub-detail 16 Sub-detail 17 Sub-detail 18 Sub-detail 19 Sub-detail 20 Sub-detail 21 Sub-detail 22 Sub-detail 23 Sub-detail 24 Sub-detail 25 Total
Sylantro Year 1 185 0 65 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 250
Year 2 265 0 267 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 532
Year 3 355 0 529 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 885
Year 4 459 0 832 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,291
Year 5 581 0 1,200 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,781
Year 6 723 0 1,650 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,374
Year 7 1,063 0 2,194 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,256
Year 8 1,063 0 2,858 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,921
BellHaves Depreciation Schedule ($000s) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Total
Sylantro Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
237
237 824
237 824 1,061
237 824 1,061 1,291
237 824 1,061 1,291 1,451
237 824 1,061 1,291 1,451 1,698
237 824 1,061 1,291 1,451 1,698 2,004
237
1,061
2,122
3,413
4,864
6,562
8,566
Year 8 237 824 1,061 1,291 1,451 1,698 2,004 2,894 11,460
BellHaves Summary P&L ($000s)
VocalData
Initial Capital Expenditures Hardware Computer Equipment Switching Phones Software Switching OSS/BSS Other Leasehold Improvements Total Capital
Year 1
Financial Summary Year 2 Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Asset Life (Months)
606 1,250 0
550 2,750 1,217
285 1,050 3,697
295 1,103 4,722
305 1,194 5,340
316 1,493 6,353
327 1,493 7,622
676 2,150 9,016
0 0 10,802
36 60 60
4,086 0 149 0 (6,091)
626 0 328 0 (5,471)
344 0 125 0 (5,500)
263 0 131 0 (6,513)
276 0 142 0 (7,257)
299 0 178 0 (8,639)
373 0 178 0 (9,992)
746 0 256 0 (12,844)
0 0 0 0 (10,802)
36 48 36 120
Revenue Expense EBITDA
na na na
4,870 (1,062) 3,808
20,215 (2,617) 17,598
40,599 (3,252) 37,347
65,049 (3,957) 61,092
95,970 (4,803) 91,168
135,250 (5,761) 129,489
184,389 (7,102) 177,287
246,592 (7,869) 238,723
EBITDA Depreciation/Amortization EBIT
na na na
3,808 (1,864) 1,944
17,598 (3,159) 14,439
37,347 (4,360) 32,987
61,092 (5,754) 55,338
91,168 (7,302) 83,866
129,489 (9,135) 120,354
177,287 (11,251) 166,036
238,723 (14,043) 224,680
(6,091)
(1,662)
30,834
53,835
82,529
119,497
164,444
227,922
Total Revenue Generated:
792,935
Income/(Expense) Summary
NPV Net Cashflows NPV ($Ms)
$
Payback 12,098
61.7 Million Total Capital Costs:
(73,109)
BellHaves Subscriber Assumptions Year 1 (Avg. customer base for full year per switch)
VocalData Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Switch 1 Switch 2 Switch 3 Switch 4 Switch 5 Switch 6 Switch 7 Switch 8 Switch 9 Switch 10 Total Subscribers
5,000
10,500 5,000 5,000
14,700 10,500 10,500 5,000
19,110 14,700 14,700 10,500 5,000
23,888 19,110 19,110 14,700 10,500 5,000
29,859 23,888 23,888 19,110 14,700 10,500 5,000
35,831 29,859 29,859 23,888 19,110 14,700 10,500 5,000
5,000
20,500
40,700
64,010
92,308
126,944
168,748
40,131 35,831 35,831 29,859 23,888 19,110 14,700 10,500 5,000 5,000 219,850
New Subscribers
5,000
15,500
20,200
23,310
28,298
34,637
41,803
51,103
BellHaves Investment Detail (Per Switch) Hardware ($000s) Computer Equipment Switching Software ($000s) Switching OSS/BSS Voicemail
VocalData Initial
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
606 1,250
275 1,375
285 1,050
295 1,103
305 1,194
316 1,493
327 1,493
338 1,075
NA NA
4,086 149
313 164
344 125
263 131
276 142
299 178
373 178
373 128
NA NA NA
BellHaves Per Subscriber Pricing Assumptions
VocalData Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Per Subscriber Installation Charge
50.00
51.75
53.56
55.44
57.38
59.38
61.46
63.61
Baseline service charge Replacement PBX Pricing Access charge (e.g., T1 or DSL) Phone Total
30.00 8.00 14.20 52.20
31.05 8.28 13.91 53.24
32.14 8.57 13.64 54.34
33.26 8.87 13.36 55.49
34.43 9.18 13.10 56.70
35.63 9.50 12.84 57.97
36.88 9.83 12.58 59.29
38.17 10.18 12.33 60.68
Baseline Premium (3-way,call block,callfw,speed dial, etc.) Call Waiting, etc. Percent Utilization Average price
14.95
15.47
16.01
16.58
17.16
17.76
18.38
19.02
24.95 6% 1.50
25.82 6% 1.55
26.73 6% 1.60
27.66 6% 1.66
28.63 6% 1.72
29.63 6% 1.78
30.67 6% 1.84
31.74 6% 1.90
Conference Calling, etc. Percent Utilization Average price
34.95 9% 3.15
36.17 9% 3.26
37.44 9% 3.37
38.75 9% 3.49
40.11 9% 3.61
41.51 9% 3.74
42.96 9% 3.87
44.47 9% 4.00
Anywhere V-mail, etc. Percent Utilization Average price
42.95 4% 1.72
44.45 4% 1.78
46.01 4% 1.84
47.62 4% 1.90
49.29 4% 1.97
51.01 4% 2.04
52.80 4% 2.11
54.64 4% 2.19
Web Mobility, etc. Percent Utilization Average price
49.95 7% 3.50
51.70 7% 3.62
53.51 7% 3.75
55.38 7% 3.88
57.32 7% 4.01
59.32 7% 4.15
61.40 7% 4.30
63.55 7% 4.45
Road Warrior Pkg., etc. Percent Utilization Average price
69.95 7% 4.90
72.40 7% 5.07
74.93 7% 5.25
77.55 7% 5.43
80.27 7% 5.62
83.08 7% 5.82
85.99 7% 6.02
89.00 7% 6.23
Total Monthly Revenue
77
79
81
83
85
87
90
92
Annual revenues per subscriber ($s)
924
947
971
996
1,022
1,049
1,077
1,107
Annual revenues per subscriber ($000s)
0.92
0.95
0.97
1.00
1.02
1.05
1.08
1.11
Notes: 1. Annual inflation is assumed to 3.5%. 2. Markup on phone rental not to exceed a factor of 3.5x times depreciation value.
BellHaves Phone Purchase
VocalData Initial
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Executive Set (15% of Units) Phone purchase price Depreciation value (Based on 60 months) Monthly rental value
450 7.50 26.25
441 7.35 25.73
432 7.20 25.21
424 7.06 24.71
415 6.92 24.21
407 6.78 23.73
399 6.64 23.25
391 6.51 22.79
Standard Set (85% of Units) Phone purchase price Depreciation value (Based on 60 months) Monthly rental value
175 2.92 10.21
172 2.86 10.00
168 2.80 9.80
165 2.75 9.61
161 2.69 9.42
158 2.64 9.23
155 2.58 9.04
152 2.53 8.86
Weighted Average Sets Phone purchase price Depreciation value (Based on 60 months) Monthly rental value
243 4.06 14.20
239 3.98 13.91
234 3.90 13.64
229 3.82 13.36
225 3.74 13.10
220 3.67 12.84
216 3.59 12.58
211 3.52 12.33
5,000 243.35 1,217
15,500 238.50 3,697
20,200 233.75 4,722
23,310 229.09 5,340
28,298 224.52 6,353
34,637 220.05 7,622
41,803 215.67 9,016
51,103 211.37 10,802
Phone capital expenditures $(000s) New Subscribers Phone Purchase Price Total ($000s)
BellHaves Investment Detail Switch 1 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 2 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 3 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 4 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 5 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 6 Hardware Computer Equipment
VocalData Initial
Year 1
Year 2
Year 3
Year 4
606 1,250 4,086 0 149
275 1,375 313 0 164
275 1,375 313 0 164
285 1,050 344 0 125
295 1,103 263 0 131
305
Year 5
Year 6
Year 7
Year 8
Switching Software Switching OSS/BSS Other Switch 7 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 8 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 9 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Switch 10 Hardware Computer Equipment Switching Software Switching OSS/BSS Other Total Hardware Computer Equipment Switching Software Switching OSS/BSS Other
1,194 276 0 142
316 1,493 299 0 178
327 1,493 373 0 178
338 1,075 373 0 128
338 1,075 373 0 128
606 1,250
550 2,750
285 1,050
295 1,103
305 1,194
316 1,493
327 1,493
676 2,150
4,086 0 149
626 0 328
344 0 125
263 0 131
276 0 142
299 0 178
373 0 178
746 0 256
BellHaves Revenue Detail ($000s) Subscribers Service revenue Total revenue switch 1 Installation revenue Other Total
VocalData Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
5,000 0.9 4,620
20,500 0.9 19,413
40,700 1.0 39,517
64,010 1.0 63,757
92,308 1.0 94,347
126,944 1.0 133,193
168,748 1.1 181,820
219,850 1.1 243,341
250
802
1,082
1,292
1,624
2,057
2,569
3,251
4,870
20,215
40,599
65,049
95,970
135,250
184,389
246,592
BellHaves Expense Detail ($000s) Maintenance Upgrades Incremental Personnel Sub-detail 6 Sub-detail 7 Sub-detail 8 Sub-detail 9 Sub-detail 10 Sub-detail 11 Sub-detail 12 Sub-detail 13 Sub-detail 14 Sub-detail 15 Sub-detail 16 Sub-detail 17 Sub-detail 18 Sub-detail 19 Sub-detail 20 Sub-detail 21 Sub-detail 22 Sub-detail 23 Sub-detail 24 Sub-detail 25 Total
VocalData Year 1 987 0 75 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,062
Year 2 2,309 0 308 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,617
Year 3 2,641 0 611 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,252
Year 4 2,996 0 960 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,957
Year 5 3,418 0 1,385 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4,803
Year 6 3,856 0 1,904 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 5,761
Year 7 4,571 0 2,531 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7,102
Year 8 4,571 0 3,298 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7,869
BellHaves Depreciation Schedule ($000s) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
VocalData Year 1 1,864
Year 2 1,864 1,295
Year 3 1,864 1,295 1,201
Year 4 1,864 1,295 1,201 1,394
Year 5 1,864 1,295 1,201 1,394 1,548
Year 6 1,864 1,295 1,201 1,394 1,548 1,833
Year 7 1,864 1,295 1,201 1,394 1,548 1,833
Year 8 1,864 1,295 1,201 1,394 1,548 1,833
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