News
A: Cbeyond was founded to bring "big business" communications services to small business customers at prices they could afford and that we could deliver profitably. This market segment is rapidly growing and, until now, has been underserved by traditional phone service providers. Our Voice over Internet Protocol (VoIP) network gives us the dramatic savings in network and operating expenditures that allow us to move down market to customers who have as little as 4 lines of local phone service. Communications expenditures are the third largest expense for these small business companies (after rent and personnel) yet it can cause them the most problems. Cbeyond is changing that customer experience by delivering them a simple, integrated service package of local, long distance and broadband Internet access over one network, maintained by one provider with one bill and anytime access to online account management tools.
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Q: Why is Cbeyond unique?
A: We're using Voice over Internet Protocol (VoIP) architecture to deliver integrated voice and data over a single platform with seamless integration and delivery. We use T-1 broadband access to bring our small business customers the latest technology and productivity tools.
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Q: How is that different from what other companies are doing?
A: Cbeyond is the first company to build a 100% Voice over Internet Protocol Local telephone network. We deliver voice and Internet-based applications to small businesses at cost savings typically only available to large enterprises. Our service package is integrated and delivered over a single, VoIP network. Other companies may be combining services on one invoice, but they're bringing together products over multiple networks and managing multiple business support systems. These processes and architecture is difficult to manage which translates into complicated installations and multiple customer support numbers for customers to call.
Our customers receive one invoice for all services, and the price will typically be less than if they purchased each service separately. Our unique technology translates to faster, smoother installations, one number to call for support and also allows us to give our customers online account management tools that give them the power to access the same account information that our customer care agents see and make instant changes for their voice and data services.
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Q: What services will Cbeyond Offer?
A: Our BeyondVoice packages provide high quality local and long distance voice communications, dedicated high-speed T-1 Internet access, Toll-Free and more. BeyondVoice is an integrated package delivered over a dedicated T-1 Line. Cbeyond makes product selection easy for our customers by providing all of the core communications services they need in a simple package that starts for as low as $495 per month. Cbeyond has conveniently packaged some of its most popular voice and Internet features to complement the BeyondVoice service. Every BeyondVoice package includes your choice of one Office Pack and Additional applications can also be purchased: voicemail, email, local lines, blocks of domestic long distance, toll free numbers, caller ID with name, public IP addresses, VPN, web hosting and more.
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Q: What is Cbeyond's target market?
A: Our customers are businesses with fewer than 100 employees-those who typically use between four and 24 phone lines.
The high capital requirements of traditional Competitive Local Exchange Carriers (CLECs) that use a traditional, circuit-switch network force them to target larger businesses typically with at least 15 lines of local phone service to justify their costs. With our next-generation VoIP technology, we change the rules - moving down market, delivering high quality competitive telephony and Internet services at reduced costs to this under-served and fast growing small business market.
As the leader in the VoIP local telephone and broadband services market, we deliver all services, including local and long distance voice as applications on a dedicated, private IP network. We deliver a richer integrated package of voice, broadband Internet and IP-based applications typically for the price that our small business customers are paying today for voice services alone.
We deliver the high speed Internet access that small businesses crave. We enable them to embrace the bandwidth and integrate productivity-enhancing, IP-based applications into their office over that bandwidth. We help them make use of applications that increase their productivity and their strength in a way that is simple and easy to use. We have effectively eliminated the barriers of extensive up-front costs, complex decision-making, technology resource issues and fears of obsolescence.
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Q: Who are your competitors?
A: Our primary competition is the local telephone companies or ILECs (Incumbent Local Exchange Carriers).
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Q: Aren't you just like another CLEC or ICP?
A: No. We are the next-generation telecom services company. If the Bell Companies built their network today, they would use our design.
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Q: Can you describe your technology?
A: Cbeyond is a facilities-based, Voice over Internet Protocol (VoIP) Local Telephone and Broadband service provider. We started with a clean slate and embraced a VoIP and software-based architecture that delivers integrated communication applications services over a single platform with seamless integration and delivery.
At each of our customer locations, we install and manage a Cisco Integrated Access device (a router about the size of a pizza box), which connects to both a customer's existing phone system and LAN. We send our IP traffic across our private Cisco-based backbone network, while handing off Internet data to our Internet service provider partners and phone calls to the Public Service Telephone Network (PSTN). No voice traffic ever goes over the Internet.
We are leading the emerging VoIP local telephony movement where voice is an application on a private, managed IP network.
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Q: Why did you Choose T-1s as your Primary Access Technology?
A: One of Cbeyond's founding technology tenets was that we wanted to remain access agnostic. We are delivering services that can be delivered to our customers across many different forms of broadband access. We use T-1s today because it is the most ubiquitous access technology in the market today and delivers speed, reliability, density and performance.
Today our access will be UNE (Unbundled Network Element) T-1's and EELs (Enhanced Extended Loops). In the future, we can migrate to alternative access technologies such as Gigabit Ethernet, xDSL, Fiber and broadband wireless if they meet our service levels and economic factors.
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Q: Who are your technology partners?
A: We are using a Cisco end-to-end solution throughout our network.
We chose Cisco as our technology partner because we believe they are clearly ahead of their competition in their thinking and development process and because they were focused on the 'end-to-end' solution that met our needs. We are a beachhead account for Cisco's solution and have worked very closely in the definition and development of this pioneering technology.
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Q: How does Voice over Internet Protocol (VoIP) differ from Voice over the Internet?
A: Cbeyond is the VoIP Local Phone Company and the top of the VoIP food chain. We use a private IP network and softswitch technology to deliver high quality, affordable communications services to small business customers. We are a peer to the local phone company and support the primary line telephone services which small business customers have come to expect: E911, operator services, line features such as Call Waiting, Caller ID with Name, Three-Way Calling, Call Forward, etc. And unlike many VoIP companies who deliver voice as an application over the Public Internet where quality is "best efforts" and highly dependent on their broadband Internet connection, voice calls with Cbeyond travel over a dedicated IP connection and never touch the Public Internet; allowing Cbeyond to manage the Quality of Service and achieve 99.999% availability.
Cbeyond does not transmit voice across the Internet. All phone calls made using Cbeyond's service are transmitted over our own secure, private, Cisco-powered network. From our customers' locations we convert voice signals into "packets", which are the basic building blocks of an Internet Protocol data network, and transport them across our network. When the voice packets arrive at our network egress, we convert them back into a traditional, TDM voice signal that is carried over the traditional Public Switched Telephone Network to its destination. This allows us to dynamically deliver both voice and data services to our customers over one integrated connection without compromising the quality of their voice service.
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Q: How will the transmission quality compare to traditional phone lines?
A: Voice quality over Cbeyond's network is just as good as with older technologies. The International Bellcore Specified Telecommunications Union or ITU standards propose 150 milliseconds (ms) or less as the objective for one way delays across a network transporting voice applications. The human ear can perceive delays in an interactive conversation when one-way delay exceed 125 ms. Our actual measured delay ranges from 75 to 78 ms one way.
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Q: How will your financials differ from the legacy telecom carriers?
A: Customer confidence in Cbeyond has never been higher. Because our customers see what the major financial institutions see - a stable, fully-funded provider with solid financial backing. Cbeyond closed a $43 million round of private equity in December 2002 for a total contributed equity of $146 million.
At Cbeyond, we have lower costs in capital investment and on-going maintenance because of our single infrastructure design. Our integrated voice and broadband package provides an extremely compelling value proposition for small businesses, offers a greater sales productivity performance and brings higher average revenue per user (ARPU) than other providers. And as a result of our high-touch, customer-focused organization and superior support systems, our customers even help us spread the word: One-third of all new sales are from customer and partner referrals. And Cbeyond leads all voice and data service providers with a monthly customer retention rate that exceeds 99%.
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Q: How are you able to offer your services at such better pricing?
A: Cbeyond leverages innovations in Voice over IP (VoIP) and soft-switch technologies to provide a "disruptive" economic and operational advantage over legacy providers. Our Voice over Internet Protocol (VoIP) network is more efficient than the old way of delivering voice and Internet services because we are able to provide both voice and data traffic over the same network. A single network that delivers integrated voice and data is a significant improvement over legacy technologies, which are harder to implement, maintain and enhance, and much more costly. If the Bell Companies were to build their networks today, they would use our design.
Our capital expenditures in a typical market are significantly less than the cost of a circuit switch based entrant. In addition to the lower costs in capital investment, we reap the continued savings in ongoing maintenance and management of one network infrastructure. Finally, our network allows us to seamlessly handle moves, adds and changes for our customers via CbeyondOnline™, our web-based account management tool.
Finally, more than 60% of our costs are success based. In other words, 60% of our cost is triggered by acquiring new customers versus upfront network costs. Unlike other "build it and they will come" carriers, we will not incur that expense unless we are installing paying customers.
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Q: Why will Cbeyond stay financially strong while other competitive carriers have struggled?
A: First, Cbeyond raised $146 million in an initial round of private equity investment to support the build-out of the world's first 100% VoIP Local Telephone network. We were able to select an investor group, which is highly respected in the venture capital market and experts in the telecommunications industry.
Second, with our initial equity investment and additional private financing, Cbeyond is fully funded. We will not commit to additional markets that we have not fully funded in advance. This means we have the capital we need to grow and survive.
More importantly, we are a new kind of communications company with new, disruptively lower economics. Many of us came from CLECs and we knew early on that we could not compete with the ILEC using ILEC technology. Our VoIP technology gives us the dramatically different infrastructure and costs that changes the business model.
Customers want what we have to offer. Customers are asking for communications services they can afford, delivered over by one provider, with one bill. Cbeyond can deliver that and as a result we are one of the fastest growing broadband providers in the nation.
Many of our competitors who are experiencing problems were technologists who built a network hoping customers would come— Cbeyond was formed by experienced marketing and sales professionals who knew what problem we were trying to solve and went in search of the technology to deliver it.
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Q: What can I expect as a customer with Cbeyond?
A: Small Business Is Our Only Business. We founded Cbeyond to meet the unique communications needs of small businesses. Everything we do is guided by this mission.What You Can Expect· Personal attention, from the minute our sales associate first arrives at your business.
- A communications package tailored to the needs of your business.
- A Service Coordinator to make sure your installation goes smoothly.
- Easy, fast, Web-based account management with CbeyondOnline.
- Outstanding customer support, thanks to our dedicated representatives and state-of-the-art systems.
- Quick installation and simple ways to order additional services as you need them.
We recognize that earning your admiration takes more than simply delivering a product or service. It requires delivering a superior experience. That's why we focus on making sure you're happy with every part of your relationship with us, every day.
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Q: Where do you offer service?
A: Cbeyond provides service to small business customers in Atlanta, Georgia; Chicago, Illinois; Dallas-Fort Worth, Texas and Houston Texas and Denver, Colorado.
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Q: In a few words, why will Cbeyond succeed?
A: We are focused on a huge market that is rapidly growing and under-served. Small businesses are currently burdened with multiple suppliers for their communication needs, and we resolve those issues for them.
We are first in this new category of Voice over Internet Protocol and Broadband Service Providers and will lead this industry in embracing the next-generation technologies of VoIP to deliver value-add applications that support our customer's efficiency and growth.
We are financially solid, reflecting our ability to work with top quality investors and business partners. We have a clear business plan, which we are successfully executing against with our launch in Atlanta. We intend to be a national company with coverage of many of the tier one metropolitan areas by 2003.
We know what problem we are trying to solve and we have the team, the technology and the focus to attack it. We have a singular vision of quality and service excellence. We will enable small business customers with big business communications tools at prices they can afford.
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