.TEL Application
Registry Operator’s Proposal
October 2, 2000
Table of Contents
D2 Registry’s Name &
Headquarters Address
D9 Full names and positions of
Board, Officers and Management:
D10 Contacts regarding this
proposal
D13.1.2 Current Business
Operations
D13.1.3 Business History &
Intellectual Property
D13.1.4 Database and Internet
Related Experience
D13.1.8 General Liability Insurance
D13.2.1 Services to be Provided
D13.2.5. Estimated demand for
registry services for .tel.
D13.2.6. Resources required to
meet demand for .tel.
Staffing requirements: 90%
confidence scenario 2001 – 2004
Staffing requirements: 50%
confidence scenario 2001 – 2004
Staffing requirements: 10%
confidence scenario 2001 – 2004
Hardware and technology based
resources.
D13.2.7 Plans for acquiring
necessary systems and facilities
D13.2.8 Staff size/expansion capability
D13.2.9 Availability of
Additional Management Personnel
D13.2.10 Term of Registry
Agreement
D13.2.11 Expected Costs
Associated With Operation Of Registry:
D13.2.12 Expected Revenue
Associated With Proposed Registry:
D13.2.15 Registry Failure
Provisions
D13.3 PRO-FORMA FINANCIAL PROJECTIONS
D13.3.1 90% Confidence Level
Plan
D13.3.2 50% Confidence Level
Plan
D13.4 SUPPORTING DOCUMENTATION
D13.4.1 Registry Operator’s
Articles of Incorporation
D13.4.2 References (Industry and Trade)
D14
TECHNICAL CAPABILITIES AND PLAN
D15. The Technical Capabilities and Plan
D15.1 Detailed description of
Registry operator's technical capabilities
D15.2. Technical plan for the proposed registry operations.
D15.2.1. General description of
proposed facilities and systems.
D15.2.2. Registry-registrar model
and protocol.
D15.2.3. Database capabilities.
D15.2.4. Zone file generation.
D15.2.5. Zone file distribution and
publication.
D15.2.6. Billing and collection
systems.
D15.2.7. Data escrow and backup.
D15.2.8. Publicly accessible look
up/Whois service.
D15.2.12. System outage prevention.
D15.2.13. System recovery
procedures.
D15.2.14. Technical and other
support.
NetNumber.com, Inc ("NetNumberä")
650 Suffolk St., Suite 307
Lowell, MA 01854
Network Facility #1:
EMC Corporation
Internet Services Group (ISG)
117 South Street
Hopkington, MA 01748
Network
Facility #2:
Exodus Communications, Inc.
175 Wyman St.
Waltham, MA 02451
NetNumber.com,
Inc. ("NetNumber") is a United States corporation organized under Delaware
Law and incorporated in August 1998.
D-U-N-S Number: 14 - 348 - 8661
3 General & Administration
15 Development and 2nd
Line Operations (1st line
operations outsourced)
2 Business
Development
1 Intellectual
Property
NetNumber launched its Global Internet
Telephony Directory service in July 2000.
The NetNumber financing plan and GITDä
pricing structure call for free GITD registration through the end of 2001. Billing will begin for GITD service in
January 2002.
Board
of Directors
Manny
Fernandez Chairman Gartner
Group.
John
Davis Former CTO of
AT&T and of Allied-Riser Communications.
John
White Former CIO Compaq
and Texas Instruments.
Roger
Nelson Former Chairman Ernst
& Young Consulting.
Joseph
Farrelly CIO of Seagram
& Co (recently acquired by Vivendi)
William
Turner Co-founder
Signature Capital.
Paul Finnigan President Emeritus, International Association For
Enhanced Voice Services (VMA). Founder VMI.
CEO of FinniganUSA.
Officers
Glenn
Marschel CEO and President
Robert H. Walter CTO, Development & Operations
Douglas J. Ranalli Founder, Chief Strategy Officer
Managers
Steve Darrington VP Finance & Administration
David P. Peek Director, Technology Strategy
Rick Turmel Director, Quality Assurance & Test
Scott Weaver Manager, Graphical User Interfaces
Chuck Santos Manager, Software Development
Alan Beaulieu Manager, Database Systems
Entities
owning five percent or more of registry operator.
Signature Capital,
LLC (www.signaturecapital.com)
Glenn Marschel, CEO and
President, NetNumber
Douglas Ranalli, Founder and Chief
Strategy Officer, NetNumber
Douglas Ranalli
Founder & Strategy Officer
NetNumber
Telephone: 1.978.454.4210 ext 22
Facsimile: 1.978.454.5044
Email: dranalli@netnumber.com
Contact for: General
Application Inquiries
Robert H. Walter
CTO, VP Development and Operations
NetNumber
Telephone: 1.978.454.4210 x 24
Facsimile: 1.978.454.5044
Email: rwalter@netnumber.com
Contact for: Technical and operational
questions
Steve Darrington
VP Finance & Administration
NetNumber
Telephone: 1.978.454.4210 ext 35
Facsimile:
1.978.454.5044
Email: sdarrington@netnumber.com
Contact
for: Business plan and financial
questions
EMC
Corporation
Internet Services Group (ISG)
117 South Street
Hopkington, MA 01748
Contact:
Brian Harnett
Senior Account Representative
617.618.3400
harnett_brian@emc.com
Corporate Structure: NetNumber.com, Inc. ("NetNumber™" or the "Company"), a Delaware corporation founded in August 1998 with headquarters located in Lowell, MA, USA is engaged in the business of providing global Internet directory services.
Capital Structure: NetNumber is a privately held venture capital backed corporation that has raised $9 million of equity financing and operates with the following high-level fully diluted ownership structure:
Founders 30%
Other Staff 18%
Venture Investors 42%
Strategic Alliances: NetNumber utilizes the services of several key outsourcing vendors to provide asset financing, asset hosting, Internet access/private peering, and 1st line 24x7 operations support. The Company's key strategic relationships include:
EMC Corporation (Back office, DNS & LDAP master site)
- Asset financing, hosting and on-demand data storage services.
- 24 x 7 1st line DBA and operations support staff.
- Initial assets originally deployed February 2000.
Exodus Communications (Back-up DNS & LDAP master site)
- Asset hosting and 24x7 1st line operations support.
- Private peering with multiple Tier-1 Internet backbone providers.
- Initial assets being deployed November 2000.
Level3 Communications (End-point DNS access nodes)
- Asset hosting and private peering with multiple Tier-1 Internet. backbone providers.
- 24x7 on-site operations support staff.
- Initial assets being deployed December 2000.
WorldCom Communications (End-point DNS access nodes)
- Asset hosting and private peering with multiple Tier-1 Carriers
- 24x7 on-site operations staff
- Initial assets being deployed Q1 2001.
SUN Microsystems (Network assets)
- Development and production hardware
- Architecture consulting
- Member of the SUN Start-up Essentials Program.
LSI Logic (Network assets)
- Enterprise storage systems
- Architecture consulting
For industry references please see section 13.4.2 "References" later in this document.
NetNumber
currently provides two Internet directory services:
Global Internet-Telephony Directory (GITD™):
The GITD is a combination DNS and LDAP directory service that translates
telephone numbers into Internet addresses in support of all forms of
Internet-Telephony applications. The GITD is the outgrowth of a three
year technology development, intellectual property and standards body effort
launched by the NetNumber team in early 1997.
The GITD utilizes a two-tier logical control model to translate a telephone number ("e164 number") into any number of associated Internet addresses – (IP-phone, fax, e-mail, voicemail, PDA, etc.) The top-tier of the GITD was designed to operate like a top-level domain (TLD) of the Internet Domain Name System (DNS). As such, the top-tier of the GITD is a DNS-service that translates an e164 telephone number into the location or address of an appropriate second-tier directory that contains authoritative Internet address information for a given number. Just two months after the launch of service, the GITD, currently deployed under the domain "e164.com", has already begun to gain significant momentum with key Internet-Telephony technology vendors and service providers. If the ".tel" application is approved by ICANN, the GITD will become the first application to leverage the ".tel" TLD and the existing top-tier of the GITD currently operating under the domain "e164.com" will be migrated to the ".tel" TLD.
Virtual Private LDAP
Directory (VPD™): As a compliment to the GITD, NetNumber also
provides a fully
outsourced LDAP directory infrastructure that application vendors can utilize
to share directory information across distributed applications. The VPD
is a highly efficient mechanism for enterprise customers and service providers
to gain access to a secure, high-performance LDAP infrastructure without
having to build and deploy their own solution.
The NetNumber team began working on Internet related directory service
opportunities in early 1997 under a technology development and intellectual
property effort launched by the team while working at Unifi Communications
("Unifi"). Unifi was an early
entrant into the fax-over-IP marketplace that began offering international fax
delivery services in 1992.
The directory services program at Unifi picked up momentum in mid-1997
when the team was asked to provide services in support of a joint industry
initiative between the Voice Mail Association (VMA) www.ivma.ch and the Electronic Messaging
Association (EMA) www.ema.org. The goal of the joint initiative was to
demonstrate that voicemail messages could be sent over the Internet between
disparate voicemail platforms using the VPIM protocol. The role of the directory service was to
translate a telephone number into the Internet address information necessary to
support the VPIM voice messaging protocol.
VPIM (Voice Profile for Internet Mail) is an IETF standard for voice
messaging on the Internet.
A key member of the NetNumber team, David Peek, was elected to the
position of Chairman of the Technical Working Group (TWG) of the joint EMA/VMA
initiative in December 1998. As
Chairman of the TWG, David coordinate the efforts of seven industry
participants including Lucent, Nortel, Comverse, Unisys, Glenayre, Alcatel and
Tecnomen in completing a series of VPIM trials, the last of which was performed
at the Telecom 99 event in Geneva.
These early industry support activities in 1997 and 1998 provided the
NetNumber team with direct experience in delivering the Internet-Telephony
directory services that represent the baseline application for the
".tel" TLD. This early work
also provided the foundation for the filing of multiple directory related
patents.
Intellectual Property : The NetNumber team has filed three comprehensive
patent applications, the first of which, dated June 1998, incorporates the
team's initial directory services work that began in early-1997. Outlined below
is a brief summary of the three applications that make up the core of the
NetNumber intellectual property position as it relates to the ".tel"
TLD. In total the three patents include
156 claims covering process concepts, application specific concepts and
implementation specific concepts relating to the use of a shared directory in
Internet-Telephony services.
METHOD AND APPARATUS FOR
CORRELATING A UNIQUE IDENTIFIER, SUCH AS A PSTN TELEPHONE NUMBER, TO AN
INTERNET ADDRESS TO ENABLE COMMUNICATIONS OVER THE INTERNET.
This patent describes the use of a shared "Directory Service" (DS) as
a mechanism for converting PSTN telephone numbers into the IP address
information necessary to establish a communications link over the Internet
between two unrelated communications platforms using standard telephone numbers
for addressing. The patent outlines over 50 claims relating to the use of a
shared directory in setting up real-time voice, voice messaging, remote
printing, and unified-messaging applications over the Internet using standard
telephone numbers for addressing. Specific attention is focused in this patent
on the implementation concepts incorporated into the directory service provided
by NetNumber including billing based on active usage rather than on
registration, and on the assignment of multiple IP-device addresses to a single
telephone number.
IDENTIFYING AND
REPLYING TO A CALLER
This patent application deals with the use of a shared directory service to
expand the role of the Internet in global voice messaging. The patent describes
the use of a shared Internet directory in enabling end-users to "reply for
free" to voicemail messages over an IP network using a shared directory to
convert a return telephone number into a reply address for an Internet enabled
voicemail, e-mail or unified-messaging system. The application includes over 50
claims covering various aspects of Internet voice messaging and directory
services.
REMOTE PRINTING OF A
DOCUMENT
This patent application deals with utilizing a shared Internet directory to
convert a telephone number into the IP address of an network enabled printer as
a mechanism for enabling a remote printing capability over the Internet.
While at Unifi, the NetNumber team built a
global, secure Internet backbone infrastructure for carrying International fax
traffic for corporate customers located in the US, Japan, Hong Kong, China,
South Korea, Taiwan, Singapore, Australia, the UK, France and Germany. Unifi employed 675 people located in 10
wholly owned or majority owned country units and the Unifi IP-Fax distribution
network included 28 IP/PSTN gateway network nodes located in 16 countries.
Unifi experienced enormous revenue growth during the period 1992 – 1997
achieving a ranking of #20 on the INC 500 list of fastest growing private
companies in the US in 1997. At its
peak, Unifi was providing Fax-over-IP service on a 24x7 basis to 15,000
corporate customers located in nine countries, speaking seven different
languages.
While at Unifi, the NetNumber team gained invaluable insight into the
challenges of integrating the Internet and the PSTN at both the technical
interface level and at the addressing and customer service level. Specific experiences gained by the team
while at Unifi that will be relevant to the ".tel" TLD are as
follows:
·
Operational experience running a complex global database infrastructure
supporting multiple applications in a multi-lingual, 24x7 mission critical
environment.
·
Customer support experience running a 24x7, global, multi-lingual
customer support team providing services to 15,000 corporate clients.
The Global Internet-Telephony Directory and the ".tel" TLD
application are a direct outgrowth of the technical and operational skills
gained by the NetNumber team during the process of building the Unifi network
and service.
Deregulation of international
telecommunications brought an end to the underlying core business model for
Unifi Communications 1998. As a result,
the NetNumber team purchased a substantial base of intellectual property and
underlying technology from Unifi and launched NetNumber as a stand-alone
business with venture capital equity financing.
"Turning telephone numbers into
Internet Numbers"
NetNumber's mission is
to provide secure, reliable, independent, network-based directory services to
facilitate the smooth convergence of global communications services between the
Public Switched Telephone Network (PSTN) and the emerging Internet-Telephony
industry.
The executive team and Board of Directors of NetNumber includes
individuals with direct experience in every aspect of the technology,
operations, customer segments, and standards bodies, associated with the
business of Internet directory services. Outlined below is background
information on the executive team and Board of Directors at NetNumber:
Manuel À Fernandez -
Director of the company
Mr. Fernandez (Manny) is presently Chairman of the GartnerGroup and a Managing
Partner of SI Ventures. GartnerGroup (www.gartner.com) is the world's largest
and most renowned IT research, advisory, measurement and consultative services
company. Manny has been Chairman of the Board of
GartnerGroup since April 1995, and director since January 1991. He also held the title of Chief Executive
Officer for GartnerGroup from April 1991 to December 1998. In fiscal 1998,
GartnerGroup revenues were approximately $650 million. Prior to GartnerGroup, Manny was President
and CEO of Dataquest, Inc., a leading IT market research and consulting firm
for suppliers of information technology and for the financial and investment
communities.
Mr. Fernandez holds a bachelor's degree in electrical engineering from
University of Florida, and completed post-graduate work in solid state
engineering at University of Florida and in business administration at the
Florida Institute of Technology.
John H. Davis -
Director of the Company:
Mr. Davis (John) is presently Chief Technology Officer and a Director of Allied
Riser Communications, Inc., Dallas, TX.
Prior to joining Allied Riser Communications John held several key
positions with Bell Labs and AT&T.
At AT&T, John was the Chief Architect and Technology Officer for
AT&T Local Services, responsible for strategic technical planning,
implementation of the network and the operations infrastructure. While at
AT&T, John also filled key roles for management of AT&T's technical
resources including Group Technical Officer for Bell Labs and AT&T
Communications Services. During the dawn of the cellular era in the early 1980's,
John was responsible for the commercialization of AT&T's cellular product
line, including the installation of the first ten commercial cellular systems
in the United States. Prior to the cellular assignment, John conceived the
architecture and managed the development of what became the No. 5 Electronic
Switching System (5ESS), presently Lucent Technologies' flagship product line.
Mr. Davis received his BS from the Georgia Institute of Technology, a Masters
degree from the Massachusetts Institute of Technology (MIT), and a Ph.D. from
the University of Pennsylvania, all in the field of electrical engineering.
Roger R. Nelson -
Director of the Company:
Mr. Nelson (Roger) recently retired as Deputy Chairman of Ernst & Young
LLP. He was responsible for the E&Y
Consulting Practice, the world's third largest management consulting practice,
with $10.9 billion in revenues in fiscal 1998, offices in 31 countries, and
more than 15,500 consultants around the world.
Roger has over 30 years of experience managing Ernst & Young's
consulting practice. Roger was a member of the Ernst & Young U.S.
Management Committee, Chairman of the U.S. Consulting Services Executive
Committee, Chairman of the U.S. Consulting Services Network, Chairman of the
Ernst & Young Global Services Council, a member of the Ernst & Young
International Executive Committee, as well as the International Council. His
expertise lies in financial planning and control, information systems,
performance measurement and general management projects for major
multinationals.
Mr. Nelson is a graduate of Northern Illinois University with a B.S. Degree in
Accounting.
John W. White -
Non-executive Chairman:
Mr. White (John) recently retired as Vice President and Chief Information
Officer for Compaq Computer Corporation. In this role, John served as a member
of the executive management team for Compaq and managed Compaq's worldwide
management information systems activities. Prior to Compaq, John had a 28-year
career with Texas Instruments where he served in various management and
technical roles, including 13 years as vice president and Chief Information
Officer and 5 years as President of the Information Technology Group. At Texas
Instruments he was responsible for the deployment of worldwide standardized management
information systems, implementation of a global voice and data network, and for
developing the Information Technology business, including the IEF CASE tool.
John also spent 4 years with Electronic Data Systems developing the EDS on-line
transaction processing system for the health care, life insurance, and banking
industries. John is currently serving on the board, advisory board, and as an
advisor for several companies including CITRIX Systems (board member), TIBCO
Software (chairman of the advisory board), ECOM Worldwide (board member),
MetaSolv Software (chairman of the board), Encentris (board member), and
eTopware (chairman of the board).
Mr. White has a B.S. in mathematics and physics from Central Missouri State
University and a M.S. in mathematics from the University of Kansas.
Paul Finnigan -
Director and industry consultant to the Company:
Mr. Finnigan is CEO of FINNIGAN USA (FUSA), a voice messaging consulting
firm. FUSA clients include major
network providers, technology vendors and companies worldwide. Paul was the Founder (1980) and former
Chairman of Voicemail International (VMI), a pioneer of the voice services
industry. VMI introduced the first voice mail and interactive voice response
services in the U.S., Europe and the Pacific Rim (1980 - 1985). VMI customers
included telephone companies, airlines, movie and television producers,
financial institutions, medical information services and many others.
Paul is the President Emeritus of the International Association for
Enhanced Voice Services (VMA) and is recognized worldwide as a visionary and
innovator of voice products and services.
Joseph Farrelly -
Director of the Company:
Mr. Farrelly (Joe) is presently Senior Vice President and Chief Information
Officer (CIO) of Joseph E. Seagram & Sons, Inc., a $20+ billion
entertainment and liquor manufacturer and marketer. From 1992 to 1998, Joe was
Executive Vice President and Chief Information Officer of Nabisco, an $8.4
billion food manufacturer. From 1988 to 1992, he was Corporate Vice President
of Information Systems Development for Automatic Data Processing (ADP), a $2.5
billion computer services company. Between 1980 and 1988, he was Vice President
of Research and Development at Applied Data Research (ADR), a software company,
where he directed the development and support services of ADR's mainframe and
personal computer software products. Joe is currently a member of the Research
Board in New York City (a leading information technology analysis company) and
participates in Gartner Group's Information Technology Executive Program.
Mr. Farrelly has a B.A. in Mathematics from Providence College, and an M.B.A.
from the University of Connecticut.
William J. Turner -
Director of the Company:
Mr. Turner
(Bill) is manager and co-founder of Signature Capital, a venture capital firm,
which raised $9 million of equity for NetNumber™ in early 2000. From 1983 to
1989, Bill served in multiple capacities, including President and COO of
Automatic Data Processing ("ADP"), a computer services firm with over
$2 billion in revenues at the time. In 1989, Bill formed Turner and Partners, a
management services firm, and had multiple leveraged buyout firms as clients,
including Forstmann Little, where he had responsibility as Executive Chairman
and/or CEO for over 30 separate business units with combined sales of over $3
billion. From 1979 to 1983 Bill was employed at the Texas Instruments Consumer
Products Division where he held several senior positions including V.P. of
Sales and Marketing as well as President. He has served on the Board of
Directors of the Federal Home Loan Mortgage Corporation (Freddie Mac-NYSE)
since 1990 and since 1996 on the board of Faroudja, Inc. (FDJA-NASDAQ). He also
serves on the Boards of several private venture capital stage companies
including Hand Technologies, Inc., McCabe & Associates, Inc., Acoustic
Technologies, Inc., VIRxSYS, Inc., and Additech, Inc.
Mr. Turner has a Business Administration Degree in mathematics from the
University of Maine and a Master of Business Administration Degree from
Northeastern University.
Glenn Marschel – CEO
and Board Member:
Glenn
brings both world-class management skills to the NetNumber team as well as
specific experience in the global communications space. Prior to joining NetNumber as CEO, Mr.
Marschel (Glenn) was Chief Executive Officer, President, and Co-Chairman of
Faroudja, Inc. (FDJA-NASDAQ), a public video processing technology
company. Prior to Faroudja, Glenn was
CEO of Paging Network Inc. (PageNet), a provider of wireless messaging services
with 9 million subscribers. Prior to
PageNet, Glenn served as Vice Chairman of First Financial Management
Corporation, a leading worldwide provider of credit card transaction
processing, healthcare claims processing and document management/imaging
services with revenues exceeding $3.0 billion. He began his business career at
CSI Computer Systems in 1970, and joined Automated Data Processing (ADP) in
1972, a $5 billion company in the information processing industry. Mr. Marschel
was employed by ADP from 1972 to 1994, and served as President of several of
ADP's largest businesses, including the Automotive and Employer Services
divisions, after holding other senior positions in sales, client services,
strategy, and marketing.
Mr. Marschel received a BS degree from the University of Missouri, and attended
the Stanford University Executive Development Program. He serves on the board
of SABRE Holdings, Inc., Travelocity and Additech, Inc.
Douglas J. Ranalli,
Founder, Chief Strategy Officer and Board Member:
NetNumber.com
is Mr. Ranalli's (Doug's) third start-up business. Doug is a seasoned leader
and entrepreneur who started his first business as an undergraduate student
while earning an Engineering degree at Cornell University. This first business
was a magazine for college students called "Student Life" that grew
to a controlled circulation of 1.2 million copies reaching a total audience of
over 4 million college students before being sold to Time, Inc. in 1987. After
selling Student Life, Doug enrolled in the Harvard MBA program where he
researched eight different business ideas before starting his second business,
Fax International (later named Unifi Communications), in the spring of 1991.
Fax International/Unifi was an international IP-Fax business that hit #20 on
the INC 500 list of fastest growing private companies in the US in 1997 before
deregulation of international telecommunications brought an end to the
company's underlying business model. Doug is the subject of multiple case studies
developed by the Harvard Business School. The HBS case study "Fax
International Japan" is currently being utilized by a variety of MBA
programs around the world and is available through HBS Publishing.
Mr. Ranalli holds degrees in Industrial Engineering (BS) from Cornell
University and an MBA from the Harvard Business School. Mr. Ranalli is also the
holder of multiple communications related patents.
Bob Walter, age 37,
CTO and Vice President, Development and Operations:
Prior to
joining NetNumber™ in November 1999, Mr. Walter (Bob) was a consultant at Cisco
Systems. Prior to consulting at Cisco, Bob was VP of Architecture and
Technology at Unifi Communications. In this capacity, Bob was responsible for
UNIFI's messaging services architecture and technology. Previously, he was the
chief architect of UNIFI's Enterprise Network Interface (ENI); a reusable
framework of Java/CORBA distributed services capturing the domain of reliable
message delivery with support for rendering, real-time status and on-line
customer registration. Prior to joining UNIFI in August of 1997, Bob was lead
architect on Pratt & Whitney Aircraft's Virtual Jet Engine program, a large
scale, object-oriented distributed system involving the simulation and optimization
of multi-dimensional jet engine propulsion systems.
Mr. Walter holds degrees in Mechanical Engineering (BSME) from the University
of Massachusetts Dartmouth, a Masters Degree in Computer Science (MCS -
Software Engineering Option) from Florida Atlantic University and a Certificate
of Graduate Studies in Software Engineering from Software Engineering Institute
of Carnegie Mellon University.
Steve Darrington, age
26, VP Finance & Administration:
Steve has thirteen years
of international finance experience including five years as corporate
controller of the Economist Newspaper in London. For the last six years Steve has held senior finance positions in
venture organizations, most recently UCT International, a biotechnology
clinical trials company, which he sold on behalf of DLJ Phoenix Venture
Partners in January 2000.
Steve attended Leicester
and Manchester Business schools gaining Bachelors and Masters degrees in
Business Administration. Steve is a
Fellow of The Association of Chartered Certified Accountants.
Dave Peek, age 36,
Director of Technology Strategy:
Mr. Peek
(David) represents NetNumber™ on multiple Internet and Telecommunications
standards bodies. David is currently representing NetNumber™ as a participant
in the Electronic Messaging Association's VPIM initiative and as Chairman of
the Voice Mail Association's (VMA) technical working group on directory
services. Prior to joining NetNumber.com, David filled the same role at Unifi
Communications. While at Unifi, David was invited to speak on multiple
occasions at voice industry conferences held by both the EMA and by CTExpo.
During the period 1993 - 1996 he was a development manager at Lernout &
Hauspie Speech Products.
Mr. Peek holds degrees a BS degree in Computer Science with a minor in Business
Administration from the University of Lowell.
Thomas Sosnowski
Ph.D., Consultant, Intellectual Property:
Prior to
joining NetNumber.com in a consulting capacity, Dr. Sosnowski (Tom) was
Executive Director at Unifi Communications responsible for Research and
Intellectual Property from 1994 - 1998. Prior to that time, Tom was the Vice
President and Director of Engineering of Unifi. Tom was the creative force
behind the design, development, and worldwide homologation of the FaxLink intelligent
routing device. Tom began his career with Bell Laboratories where he was
engaged in applied research in laser physics, optical wave-guide technology,
and telecommunications terminal and switching systems. He then held management
positions at GTE Laboratories and Eikonix before founding Sosnowski Associates
in 1986.
Dr. Sosnowski holds a BS in Engineering Science from Pennsylvania State
University, and a Ph.D. in Engineering from Case-Western Reserve University. He
is a senior member of IEEE, the author of more than 20 technical publications
and a holder of 10 patents.
Current staff: The
current staff of NetNumber includes 21 people, the majority of whom are
dedicated to technology development and 2nd line technical operations
activities. In addition to the full
time staff, NetNumber leverages a large base of contract staff through its key
vendor relationships. NetNumber has
chosen to embrace the emerging model of leveraging outsourced services to
compliment a base of core full-time staff.
Outsourced services and staff are being utilized by NetNumber in the
following areas of activity:
-
Asset hosting
-
First line operations support
-
Accounting
-
Billing
-
Legal & contractual
-
Facilities management
See Section D15 "Technical Capabilities and Plan" for a
discussion of end-to-end quality control mechanisms incorporated into the
Registry plan. The current level of
full-time staff and contract staff is consistent with the operational demands
of the business at this time. However,
the ".tel" Registry business plan calls for a steady addition of
staff in 2001. Key areas of staff
expansion will be as follows:
-
Business development and marketing support
-
Customer support
Expansion capabilities:
NetNumber's headquarters facility is fully configured to support the
addition of 16 new full-time staff with no incremental asset costs or
operational costs. Additional expansion
space is available on demand in the existing physical facility and in surrounding
office buildings.
NetNumber is located in the Boston metropolitan area which is one of the
world's predominant locations for the development of Internet-Telephony
technology. Related companies operating
in the immediate area include 3Com, PingTel, Cisco, CMGI, EMC, iBasis, iperia
and Sonus networks. In addition, the
NetNumber team has direct experience with, and access to, a pool of over 350
experienced technology development and customer service staff in the Boston
area that worked at Unifi Communications.
Employee Training & Hiring Policies: NetNumber is an equal opportunity
employer. Every employee owns stock or
has stock options in the business and every employee goes through a training
program run by the top management of the business. NetNumber intends to continue the policies of 100% stock
participation and top-management lead training for the foreseeable future.
NetNumber has a current
$2 million general liability policy with the Massachusetts Bay Insurance
Company.
Massachusetts
Bay Insurance Company
100
North Parkway
Worcester,
MA 01605
NetNumber has engaged William Gallagher Associates,
the leading high-technology insurance broker in the United States to complete a
detailed insurance audit and RFP process.
Additional insurance coverage tied to the creation of the
".tel" TLD will be incorporated into the audit and RFP.
William
T. Frain, III
Vice
President
William
Gallagher Associates
200
State Street
Boston,
MA 02109
617-261-6700
".tel" TLD: NetNumber's primary service will be the operation of the ".tel" TLD as the Registry operator. Registry services will be provided to all accredited Registrars on a non-discriminatory basis. Services included under the ".tel" Registry umbrella are as follows:
Whois Services: NetNumber will provided a common Whois database service for all ".tel" Registrars as a built-in component of the Registry service.
Update Services: NetNumber will provide a shared Registry update system and associated "Registry Update Protocol" specification for use by all ".tel" Registrars. Update services will be included in the Registry fee structure.
Conflict Resolution Tool: NetNumber will provide a shared "Conflict Resolution Tool" (CRT) for use by all ".tel" Registrars as part of the Registry service. The CRT will provide a common mechanism for identifying and resolving registration conflicts between different Registrars. The CRT service will be provided as part of the Registry function.
Conflict Resolution Center: NetNumber will provide a staff of conflict resolution service personnel to assist Registrars in resolving conflicts that are not automatically resolved via the use of the CRT. CRC staff services will be billed on an hourly basis to the Registrars involved in the conflict as per the ".tel" Conflict Resolution Policy.
Initial Registrar Services: NetNumber will operate the first accredited Registrar service for the ".tel" TLD as a tool for advancing momentum for the ".tel" TLD. However, the Company's Registrar service is not expected to be an important aspect of the NetNumber business plan so no revenue projections are being made for Registrar services at this time. NetNumber's objective is to recruit Registrars on a global basis and place primary focus on providing Registry services.
The NetNumber revenue model for inclusion of entries in the ".tel" TLD is a flat fee of US$6.0 or Euro 7.0 per year.
Registrars will be billed one twelfth (1/12) of the yearly fee on a monthly basis for each entry in the Registry.
The market for the GITD is defined by any current
e164 telephone number subscriber (individual, corporation or service provider)
who wants to register a telephone number and associated Internet addresses on
the Internet. Initial market experience
with the GITD has shown that early adopters will be individuals and
corporations investing in voice over IP technology.
Market projections
call for more than 60 million IP-voice end points by the end of 2005.
Market size data
references :
2001 2002 2003 2004 2005
Infotechtrends 1999
forecast
IP voice enterprise platform ports (000’s)* 3,700 10,800 23,300 37,308 54,862
3 Com forecast for
IP PBX Port
sales of NBX100 product (000’s)A 2,000
Probe research industry projections 1999
IP voice end users (000’s) 3,700 10,800 23,300 39,300 66,024
* Years 2004 and 2005 extrapolated from
previous years trends.
A : Internet week Jun 19, 2000 / Phillips group research) 3Com market leader in IP PBX sales.
NetNumber has
defined a multi-stage marketing plan for the ".tel" TLD that is
designed to make ".tel" a piece of core infrastructure for the
emerging Internet-Telephony industry:
Stage 1: Vendor
Integration Agreements: The first
step in tying the ".tel" TLD to the growth of the industry involves
gaining agreement from technology vendors to integrate a global directory
service based on the ".tel" TLD into their IP-communications products. NetNumber started discussions with multiple
equipment vendors in the July timeframe and has already launched GITD
integration work with several key vendors.
For references regarding vendor integration activities please contact
the following:
Tom Gentles
Service Provider Group
3Com Corporation
Karim Faris
Level3 Communications
Stage 2: Industry
Education: NetNumber is actively
engaged in working with all of the key Internet-Telephony industry groups that
will be affected by the ".tel" TLD.
NetNumber is a member of the following organizations:
International Association for Enhanced Voice
Services (VMA) www.ivma.ch
Telemessaging Industry Association (TMIA) www.tmia.org
Electronic Messaging Association (EMA) www.ema.org
Softswitch Consortium www.softswitch.org
Telemanagement Forum www.tmforum.org
Stage 3: Registrar Recruitment:
The final stage of linking the ".tel" TLD to the growth of the
Internet-Telephony industry is based on bringing a large number of Registrars
into the process. The Registrar process
fits perfectly into the role played by Internet-Telephony service
providers. Examples of potential
Registrars include CLEC's (Competitive Local Exchange Carriers), Communications
ASP's (Application Service Providers) and Broadband Service Providers (DSL and
Packet-Cable).
NetNumber has engaged in
early discussions with potential Registrars from all of the customers segments
outlined above. Detailed discussions
will begin as soon as a decision is reached regarding the creation of the
".tel" TLD.
NetNumber has created three demand scenarios as follows:
A. Slow
“early adopter” penetration into closed business community user groups (90%
confidence level).
B. Moderate penetration into wider
corporate community. (50% confidence level).
C. Widespread
uptake in corporate user base with initial penetration into domestic market.
(10% confidence level).
The graph below illustrates
the market projections for growth of IP-telephony end-points, (See Info-tech and Probe research trend lines
below) and three market penetration scenarios for end-point registrations
in the ".tel" Registry.
The table below
outlines NetNumber's three market penetration scenarios:
2001 2002 2003 2004
Scenario A – 90%
confidence 10% 12.5%
15% 17.5%
Scenario B – 50%
confidence 12.5% 15%
20% 25%
Scenario C – 10% confidence 15% 17.5%
25% 35%
The resources required to meet demand for .tel are divided into two
categories :
1.
Staff
2.
Hardware and
technology based resources
The following
tables outline the planned staffing requirements under the 90%, 50% and 10%
confidence plans.
The current
NetNumber facility in Lowell, MA has capacity for 16 additional full-time staff
with no increase in asset or housing costs. The pro forma plan makes allowances
for the cost elements of additional office space when headcount grows beyond
the current space.
NetNumber staffing plan |
|
2001 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
Operations |
|
|
|
3 |
4 |
4 |
4 |
|
Service delivery |
|
|
|
3 |
4 |
4 |
4 |
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
Research & Development |
|
|
9 |
9 |
9 |
9 |
||
Selling and Business Development |
|
5 |
6 |
6 |
6 |
|||
Finance & Administration |
|
|
3 |
3 |
3 |
3 |
||
Executive Management |
|
|
2 |
2 |
3 |
3 |
||
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
25 |
28 |
29 |
29 |
NetNumber staffing plan |
|
2002 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
Operations |
|
|
|
4 |
4 |
4 |
5 |
|
Service delivery |
|
|
|
4 |
4 |
4 |
6 |
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
Research & Development |
|
|
10 |
11 |
11 |
11 |
||
Selling and Business Development |
|
7 |
7 |
7 |
8 |
|||
Finance & Administration |
|
|
4 |
4 |
4 |
4 |
||
Executive Management |
|
|
3 |
3 |
3 |
3 |
||
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
32 |
33 |
33 |
37 |
NetNumber staffing plan |
|
2003 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
Operations |
|
|
|
5 |
5 |
6 |
6 |
|
Service delivery |
|
|
|
6 |
7 |
8 |
9 |
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
Research & Development |
|
|
13 |
13 |
15 |
15 |
||
Selling and Business Development |
|
8 |
8 |
8 |
8 |
|||
Finance & Administration |
|
|
4 |
5 |
6 |
6 |
||
Executive Management |
|
|
3 |
3 |
3 |
3 |
||
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
39 |
41 |
46 |
47 |
NetNumber staffing plan |
|
2004 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
Operations |
|
|
|
7 |
7 |
8 |
8 |
|
Service delivery |
|
|
|
12 |
14 |
16 |
18 |
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
Research & Development |
|
|
16 |
16 |
16 |
16 |
||
Selling and Business Development |
|
8 |
9 |
9 |
9 |
|||
Finance & Administration |
|
|
6 |
7 |
7 |
8 |
||
Executive Management |
|
|
3 |
3 |
3 |
4 |
||
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
52 |
56 |
59 |
63 |
NetNumber staffing plan |
|
2001 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
Operations |
|
|
|
3 |
4 |
4 |
4 |
|
Service delivery |
|
|
|
3 |
4 |
4 |
4 |
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
Research & Development |
|
|
9 |
9 |
9 |
9 |
||
Selling and Business Development |
|
5 |
6 |
6 |
6 |
|||
Finance & Administration |
|
|
3 |
3 |
3 |
3 |
||
Executive Management |
|
|
2 |
2 |
3 |
3 |
||
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
25 |
28 |
29 |
29 |
NetNumber staffing plan |
|
2002 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
Operations |
|
|
|
4 |
4 |
4 |
5 |
|
Service delivery |
|
|
|
4 |
4 |
4 |
6 |
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
Research & Development |
|
|
10 |
11 |
11 |
11 |
||
Selling and Business Development |
|
7 |
7 |
7 |
8 |
|||
Finance & Administration |
|
|
4 |
4 |
4 |
4 |
||
Executive Management |
|
|
3 |
3 |
3 |
3 |
||
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
32 |
33 |
33 |
37 |
NetNumber staffing plan |
|
2003 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
Operations |
|
|
|
5 |
6 |
6 |
7 |
|
Service delivery |
|
|
|
7 |
8 |
9 |
10 |
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
Research & Development |
|
|
13 |
13 |
15 |
15 |
||
Selling and Business Development |
|
8 |
8 |
9 |
9 |
|||
Finance & Administration |
|
|
5 |
6 |
7 |
8 |
||
Executive Management |
|
|
3 |
3 |
3 |
3 |
||
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
41 |
44 |
49 |
52 |
NetNumber staffing plan |
|
2004 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
Operations |
|
|
|
8 |
9 |
10 |
11 |
|
Service delivery |
|
|
|
12 |
14 |
18 |
20 |
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
Research & Development |
|
|
16 |
16 |
16 |
16 |
||
Selling and Business Development |
|
9 |
10 |
11 |
12 |
|||
Finance & Administration |
|
|
8 |
9 |
10 |
10 |
||
Executive Management |
|
|
4 |
4 |
5 |
5 |
||
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
57 |
62 |
70 |
74 |
NetNumber staffing plan |
|
2001 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
Operations |
|
|
|
3 |
4 |
4 |
4 |
|
Service delivery |
|
|
|
3 |
4 |
4 |
4 |
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
Research & Development |
|
|
9 |
9 |
9 |
9 |
||
Selling and Business Development |
|
5 |
6 |
6 |
6 |
|||
Finance & Administration |
|
|
3 |
3 |
3 |
3 |
||
Executive Management |
|
|
2 |
2 |
3 |
3 |
||
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
25 |
28 |
29 |
29 |
NetNumber staffing plan |
|
2002 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
Operations |
|
|
|
4 |
4 |
4 |
5 |
|
Service delivery |
|
|
|
4 |
4 |
5 |
8 |
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
Research & Development |
|
|
10 |
11 |
11 |
11 |
||
Selling and Business Development |
|
7 |
7 |
8 |
8 |
|||
Finance & Administration |
|
|
4 |
4 |
5 |
5 |
||
Executive Management |
|
|
3 |
3 |
3 |
3 |
||
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
32 |
33 |
36 |
40 |
NetNumber staffing plan |
|
2003 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
Operations |
|
|
|
6 |
6 |
7 |
8 |
|
Service delivery |
|
|
|
8 |
9 |
10 |
12 |
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
Research & Development |
|
|
13 |
13 |
15 |
15 |
||
Selling and Business Development |
|
8 |
8 |
9 |
10 |
|||
Finance & Administration |
|
|
5 |
6 |
8 |
8 |
||
Executive Management |
|
|
3 |
3 |
4 |
4 |
||
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
43 |
45 |
53 |
57 |
NetNumber staffing plan |
|
2004 |
Q1 |
Q2 |
Q3 |
Q4 |
||
|
|
|
|
|
|
|
|
|
Staff Included in Cost of Service |
|
|
|
|
|
|||
Operations |
|
|
|
9 |
10 |
12 |
13 |
|
Service delivery |
|
|
|
14 |
16 |
20 |
22 |
|
|
|
|
|
|
|
|
|
|
Staff included in Operating Expenses |
|
|
|
|
|
|||
Research & Development |
|
|
16 |
16 |
16 |
16 |
||
Selling and Business Development |
|
11 |
12 |
13 |
14 |
|||
Finance & Administration |
|
|
8 |
9 |
9 |
10 |
||
Executive Management |
|
|
4 |
5 |
5 |
6 |
||
|
|
|
|
|
|
|
|
|
Total Staff |
|
|
|
62 |
68 |
75 |
81 |
The following tables illustrate the two main component parts (and
associated costs) of the
".tel" Registry – Master sites and Edge sites. The initial deployment of the
".tel" Registry represents the deployment of two Master sites
and four Edge sites.
As of the date of
this document, NetNumber has already deployed one fully redundant Master site
and one fully redundant Edge site. In
addition, assets for the deployment of the next Master site and the next two
Edge sites have been purchased and are currently in pre-deployment testing in
NetNumber's office. The full deployment
of two complete Master sites and four Edge sites will be finished during Q4
2000 and Q1 2001.
The physical
hardware component requirements and costs associated with the initial
".tel" Registry deployment is outlined below in detailed spreadsheet
format. Performance testing on the
currently deployed production assets indicate that the initial ".tel"
Registry asset deployment will deliver the following results using the
operating assumptions outlined below:
Queries per second: 15,840 (at
60% system utilization)
Average query size 250
bytes
Number of times
each number is queried per day 50 (positive and negative queries)
Percentage of daily
queries during peak hour 25%
Maximum system
utilization 60%
Using the above assumptions this “baseline” GITD deployment is scaled to
manage up to 2.4 million directory entries, each being queried an average of 50
times per day.
Index
of tables
A.
Consolidated
Master site cost summary
B.
Master site –
DNS Master
C.
Master site –
Back office (NNBO)
D.
Master site –
Web Systems (WEB)
E.
Master site –
Whois Systems (WHO)
F.
Master site –
Registry Update Protocol Systems (RUP)
G.
Master site –
Cost summary
H.
Slave site –
DNS Slave
I.
Slave site –
LDAP Slave
Table
A : Consolidated Master Site cost summary
Description |
Quantity |
Non Recurring
Unit Cost |
Annual Recurring
Unit Cost |
Non Recuring
Cost |
Recurring
Monthly Cost |
Monthly
Recurring Costs (24M) |
DNS Master |
1 |
|
|
$68,074 |
$186 |
$3,022 |
NNBO |
1 |
|
|
$204,188 |
$3,936 |
$12,443 |
WEB |
1 |
|
|
$121,778 |
$185 |
$5,259 |
WHO |
1 |
|
|
$118,778 |
$185 |
$5,134 |
RRP |
1 |
|
|
$118,778 |
$185 |
$5,134 |
Installation Fees |
1 |
$20,000 |
$0 |
$20,000 |
$0 |
$833 |
Storage Array |
1 |
$191,299 |
$10,175 |
$191,299 |
$10,175 |
$18,146 |
SAN Switches |
2 |
$5,795 |
$0 |
$11,590 |
$0 |
$483 |
Network Switches |
4 |
$1,500 |
$0 |
$6,000 |
$0 |
$250 |
Backup |
1 |
$1,995 |
$2,000 |
$1,995 |
$2,000 |
$2,083 |
Firewall |
2 |
$16,000 |
$7,000 |
$32,000 |
$14,000 |
$15,333 |
Load Balancing |
2 |
$20,995 |
|
$41,990 |
$0 |
$1,750 |
Monitoring Service |
1 |
$995 |
|
$995 |
$0 |
$41 |
Rack Space |
2 |
$1,210 |
$1,100 |
$2,420 |
$2,200 |
$2,301 |
Bandwidth |
2 |
$3,850 |
$8,880 |
$7,700 |
$17,760 |
$18,081 |
|
|
|
|
$947,585 |
$50,812 |
$90,295 |
Table
B : Master site – DNS Master
Description |
Quantity |
Non Recurring
Unit Cost |
Yearly Recurring
Unit Cost |
Non Recuring
Cost |
Monthly
Recurring Cost |
Monthly
Recurring Cost (24M) |
Hardware (see hardware detail) |
1 |
$61,444 |
$0 |
$61,444 |
$0 |
$2,560 |
Disk Array Storage |
|
|
|
$0 |
$0 |
$0 |
Veritas HA VCS |
1 |
$6,630 |
$2,229 |
$6,630 |
$186 |
$462 |
BIND 9 |
2 |
$0 |
$0 |
$0 |
$0 |
$0 |
|
|
|
|
$68,074 |
$186 |
$3,022 |
DLS Hardware
Detail |
|
|
|
|
|
|
Description |
Quantity |
Unit Cost |
Total Cost |
|
|
|
Sun 420R |
1 |
$55,000 |
$55,000 |
|
|
|
Memory Upgrade |
0 |
$3,240 |
$0 |
|
|
|
Quad Fast Ethernet Cards |
2 |
$1,077 |
$2,154 |
|
|
|
Redundant Power Supply |
0 |
$695 |
$0 |
|
|
|
JNI Fibre Cards |
2 |
$1,995 |
$3,990 |
|
|
|
Fibre Cables |
2 |
$150 |
$300 |
|
|
|
|
|
|
$61,444 |
|
|
|
Table C : Master site – Back office (NNBO)
|
||||||
Description |
Quantity |
Non Recurring
Unit Cost |
Yearly Recurring
Unit Cost |
Non Recuring
Cost |
Monthly
Recurring Cost |
Monthly
Recurring Cost (24M) |
Hardware |
2 |
$61,444 |
$0 |
$122,888 |
$0 |
$5,120 |
Disk Array Storage |
|
|
|
$0 |
$0 |
$0 |
Veritas HA VCS |
2 |
$6,630 |
$2,229 |
$13,260 |
$372 |
$924 |
Oracle Enterprise Edition - 180 units |
1 |
$68,040 |
$42,768 |
$68,040 |
$3,564 |
$6,399 |
|
|
|
|
$204,188 |
$3,936 |
$12,443 |
Hardware Detail |
|
|
|
|
|
|
Description |
Quantity |
Unit Cost |
Total Cost |
|
|
|
Sun 420R |
1 |
$55,000 |
$55,000 |
|
|
|
Memory Upgrade |
0 |
$3,240 |
$0 |
|
|
|
Quad Fast Ethernet Cards |
2 |
$1,077 |
$2,154 |
|
|
|
Redundant Power Supply |
0 |
$695 |
$0 |
|
|
|
JNI Fibre Cards |
2 |
$1,995 |
$3,990 |
|
|
|
Fibre Cables |
2 |
$150 |
$300 |
|
|
|
|
|
|
$61,444 |
|
|
|
|
|
|
|
|
|
|
Table D : Master site – Web Systems (WEB)
|
||||||
Description |
Quantity |
Non Recurring
Unit Cost |
Yearly Recurring
Unit Cost |
Non Recuring
Cost |
Monthly
Recurring Cost |
Monthly
Recurring Cost (24M) |
Hardware |
2 |
$56,077 |
$0 |
$112,154 |
$0 |
$4,673 |
Disk Array Storage |
|
|
|
$0 |
$0 |
$0 |
Veritas Foundation Suite |
2 |
$3,312 |
$1,112 |
$6,624 |
$185 |
$461 |
Stronghold 3 |
2 |
$1,000 |
$0 |
$2,000 |
$0 |
$83 |
Jrun 3 |
2 |
$500 |
$0 |
$1,000 |
$0 |
$42 |
|
|
|
|
$121,778 |
$185 |
$5,259 |
Hardware Detail |
|
|
|
|
|
|
Description |
Quantity |
Unit Cost |
Total Cost |
|
|
|
Sun 420R |
1 |
$55,000 |
$55,000 |
|
|
|
Memory Upgrade |
0 |
$3,240 |
$0 |
|
|
|
Quad Fast Ethernet Cards |
1 |
$1,077 |
$1,077 |
|
|
|
Redundant Power Supply |
0 |
$695 |
$0 |
|
|
|
JNI Fibre Cards |
0 |
$1,995 |
$0 |
|
|
|
Fibre Cables |
0 |
$150 |
$0 |
|
|
|
|
|
|
$56,077 |
|
|
|
|
|
|
|
|
|
|
Table E : Master site – Whois Systems (WHO)
|
||||||
Description |
Quantity |
Non Recurring
Unit Cost |
Yearly Recurring
Unit Cost |
Non Recuring
Cost |
Monthly
Recurring Cost |
Monthly
Recurring Cost (24M) |
Hardware |
2 |
$56,077 |
$0 |
$112,154 |
$0 |
$4,673 |
Disk Array Storage |
|
|
|
$0 |
$0 |
$0 |
Veritas Foundation Suite |
2 |
$3,312 |
$1,112 |
$6,624 |
$185 |
$461 |
|
|
|
|
$118,778 |
$185 |
$5,134 |
|
|
|
|
|
|
|
Hardware Detail |
|
|
|
|||
Description |
Quantity |
Unit Cost |
Total Cost |
|
|
|
Sun 420R |
1 |
$55,000 |
$55,000 |
|
|
|
Memory Upgrade |
0 |
$3,240 |
$0 |
|
|
|
Quad Fast Ethernet Cards |
1 |
$1,077 |
$1,077 |
|
|
|
Redundant Power Supply |
0 |
$695 |
$0 |
|
|
|
JNI Fibre Cards |
0 |
$1,995 |
$0 |
|
|
|
Fibre Cables |
0 |
$150 |
$0 |
|
|
|
|
|
|
$56,077 |
|
|
|
|
|
|
|
|
|
|
Table F : Master site – Registry Registrar Protocol
Systems (RRP)
|
||||||
Description |
Quantity |
Non Recurring
Unit Cost |
Yearly Recurring
Unit Cost |
Non Recuring
Cost |
Monthly
Recurring Cost |
Monthly
Recurring Cost (24M) |
Hardware |
2 |
$56,077 |
$0 |
$112,154 |
$0 |
$4,673 |
Disk Array Storage |
|
|
|
$0 |
$0 |
$0 |
Veritas Foundation Suite |
2 |
$3,312 |
$1,112 |
$6,624 |
$185 |
$461 |
|
|
|
|
$118,778 |
$185 |
$5,134 |
|
|
|
|
|
|
|
Hardware Detail |
|
|
|
|||
Description |
Quantity |
Unit Cost |
Total Cost |
|
|
|
Sun 420R |
1 |
$55,000 |
$55,000 |
|
|
|
Memory Upgrade |
0 |
$3,240 |
$0 |
|
|
|
Quad Fast Ethernet Cards |
1 |
$1,077 |
$1,077 |
|
|
|
Redundant Power Supply |
0 |
$695 |
$0 |
|
|
|
JNI Fibre Cards |
0 |
$1,995 |
$0 |
|
|
|
Fibre Cables |
0 |
$150 |
$0 |
|
|
|
|
|
|
$56,077 |
|
|
|
|
|
|
|
|
|
|
Table G : Consolidated Edge site – Cost summary.
Description |
Quantity |
Non Recurring
Unit Cost |
Recurring Unit
Cost |
Non Recuring
Cost |
Recurring
Monthly Cost |
Monthly
Recurring Costs (24M) |
DNS Edge |
1 |
|
|
$118,778 |
$185 |
$5,134 |
Network Switches |
4 |
$1,500 |
$0 |
$6,000 |
$0 |
$250 |
Firewall |
2 |
$16,000 |
$7,000 |
$32,000 |
$14,000 |
$15,333 |
Load Balancing |
2 |
$20,995 |
$0 |
$41,990 |
$0 |
$1,750 |
Monitoring Service |
1 |
$995 |
|
$995 |
$0 |
$41 |
Rack Space |
1 |
$1,210 |
$1,100 |
$1,210 |
$1,100 |
$1,150 |
Bandwidth |
2 |
$3,850 |
$8,880 |
$7,700 |
$17,760 |
$18,081 |
|
|
|
|
$208,673 |
$33,045 |
$41,740 |
Table H : Edge site – DNS Edge Server
Description |
Quantity |
Non Recurring
Unit Cost |
Yearly Recurring
Unit Cost |
Non Recurring
Cost |
Monthly
Recurring Cost |
Monthly
Recurring Cost (24M) |
Hardware |
2 |
$56,077 |
$0 |
$112,154 |
$0 |
$4,673 |
Veritas Foundation Suite |
2 |
$3,312 |
$1,112 |
$6,624 |
$185 |
$461 |
BIND 9 |
2 |
$0 |
$0 |
$0 |
$0 |
$0 |
|
|
|
|
$118,778 |
$185 |
$5,134 |
|
|
|
|
|
|
|
Hardware Detail |
|
|
|
|||
Description |
Quantity |
Unit Cost |
Total Cost |
|
|
|
Sun 420R |
1 |
$55,000 |
$55,000 |
|
|
|
Memory Upgrade |
0 |
$3,240 |
$0 |
|
|
|
Quad Fast Ethernet Cards |
1 |
$1,077 |
$1,077 |
|
|
|
Redundant Power Supply |
0 |
$695 |
$0 |
|
|
|
JNI Fibre Cards |
0 |
$1,995 |
$0 |
|
|
|
Fibre Cables |
0 |
$150 |
$0 |
|
|
|
|
|
|
$56,077 |
|
|
|
Over the past year, NetNumber has established the following
systems & facilities.
- Headquarters facility for 40 people.
- $9 million equity financing
- Hired executive team: CEO, CTO, CSO, VP Finance, VP Sales
- Hired 15 person development and operations team
- Acquired $1 million enterprise class network operations equipment
- Executed operating lease on additional $1 million hardware and software
- Deployed first production release of Global Internet-Telephony Directory.
- Established strong strategic relationships with key vendors
The projected
systems and facility investments necessary to execute the ".tel"
Registry business plan fall well within the resources, skills, and experience
of the team.
Despite
operating in a tight technical labor market in the Boston area, the NetNumber
team has already demonstrated its ability to hire technical and operations
staff as required. In this regard the
NetNumber team is benefiting greatly from having built a large development and
operations staff in the exact same geographic area while at Unifi
Communications. Access to necessary
staff will not be a limiting factor in the operation of the ".tel"
Registry.
NetNumber is well down the path of completing its executive team. Outlined below is a summary of filled and outstanding positions. Access to management will not be a limiting factor in the operation of the ".tel" Registry.
- Chief Executive Officer Filled
- Strategy Officer Filled
- Chief Technology Officer Filled
- VP Finance & Administration Filled
- VP Sales & Marketing Filled (accepted 9/25/00)
- VP Operations & Service Identified – scheduled Q1 2001
Initial Term: 6-years
NetNumber
believes that a six-year initial term is justified considering the long lead
time that may be required to cause a new TLD to gain momentum in the market.
Performance Extension: 4 - years
The Registry contract will automatically extended for a 4-year period if the event the Registry operator achieves one of two key performance targets during the initial term:
(a) The Registry operator and its marketing partners make investments of at least $20 million in ".tel" related sales, business development, public relations, advertising and marketing expenses during the initial term. (Incentive for making the up-front investments necessary to build momentum for the Registry during the first term.)
(b) The Registry operator achieves at least 4 million registered entries in the ".tel" TLD by the end of the initial term. (Reward for finding a way to cause the Registry to achieve a baseline critical mass of entries during the first term.)
Intellectual Property Extension: 4 – years
The Registry operator will be granted an additional 4-year extension in the event that the Registry operator is awarded one or more patents containing claims that apply to the operation of the ".tel" domain. Such patents must be awarded before the expiration of the initial term or performance extension.
See Section 13.2.6 for a detailed breakdown of staff requirements and physical asset requirements at various demand levels. See Section 13.3 for a detailed break-down of expenses on a quarterly basis across three different demand scenarios.
Registry revenue projections are based on multiplying a flat monthly fee per registered entry by the number of entries defined in each demand scenario. The revenue model for the ".tel" TLD is as follows:
2001 – All Registry services provided at no charge to stimulate initial registrations. 2002 - $0.50/month ($6/year) flat rate billing for Registry services.
The NetNumber conservative case operational model (90% confidence model) calls for $20 million of incremental equity financing and $3 million of incremental asset financing beyond the current cash reserves on-hand.
The Company's proven ability to raise equity and hardware financing indicates that this level of incremental financing is well within the capabilities of the NetNumber management team and Board of Directors.
See Section D13.4.4 "Proof of Capital" for a copy of a letter from NetNumber's lead venture capital firm attesting to their willingness to raise additional equity capital as appropriate.
Registry Failure
Provisions:
(a) (a)
The iTAB-NetNumber Registry
Agreement provides for Data Escrow of all Registry data that is under the
control of iTAB.
(b) (b)
The iTAB-NetNumber Registry
Agreement provides for the pre-funding of $200,000/year of iTAB fees by the
Registry to ensure continued operation of baseline iTAB activities even in the
event of financial failure of the Registry.
(c) (c)
NetNumber will negotiate in
good faith with iTAB to incorporate an additional clause into the Registry Agreement
that will give iTAB control over at least one Master node location (and all
associated physical assets) and at least one Edge node location (and associated
physical assets) in the event of financial failure of the Registry.
(d) (d)
NetNumber will negotiate in
good faith with iTAB to provide iTAB with the ability to seize control of the
assets described in (c) above and the ability to terminate the Registry
Agreement in the event that NetNumber is judged to be insolvent or bankrupt.
Registry Business Model 2001 - 2004 |
|
|
||
|
|
|
|
|
Income Statement annual
summary |
|
|
|
|
|
|
|
|
|
Scenario A - 90%
Confidence Level |
|
|
|
|
|
|
|
|
|
|
2001 |
2002 |
2003 |
2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
0 |
5,209,394 |
14,613,311 |
30,713,913 |
|
|
|
|
|
Cost
of Service |
5,627,886 |
5,938,793 |
7,309,118 |
10,622,513 |
|
|
|
|
|
Gross
Margin |
(5,627,886) |
(729,400) |
7,304,193 |
20,091,400 |
Gross
Margin % |
N/A |
-14.0% |
50.0% |
65.4% |
|
|
|
|
|
Operating expenses |
|
|
|
|
Research
& Development |
1,759,654 |
2,087,077 |
2,796,769 |
3,199,154 |
Selling
and Business Dev |
1,329,087 |
1,694,518 |
2,705,473 |
3,682,282 |
Marketing
and Promotion |
1,500,000 |
2,500,000 |
3,000,000 |
4,607,087 |
Finance
& Administration |
1,409,077 |
1,789,538 |
2,210,093 |
2,644,077 |
Executive
Management |
672,038 |
734,269 |
771,192 |
822,788 |
Depreciation |
144,958 |
172,875 |
211,625 |
251,417 |
Total
operating expenses |
6,814,814 |
8,978,278 |
11,695,153 |
15,206,805 |
|
|
|
|
|
Operating
Profit |
(12,297,742) |
(9,534,802) |
(4,179,335) |
5,136,012 |
|
|
|
|
|
Taxes
(@ 42%) |
0 |
0 |
0 |
0 |
|
|
|
|
|
Net
profit |
(12,297,742) |
(9,534,802) |
(4,179,335) |
5,136,012 |
Net
Profit % |
N/A |
-183.0% |
-28.6% |
16.7% |
|
|
|
|
|
Number
of Directory entries |
370,000 |
1,350,000 |
3,495,000 |
6,703,200 |
Market
penetration |
10.0% |
12.5% |
15.0% |
17.5% |
Registry Business Model 2001 - 2004 |
|
|
||
|
|
|
|
|
Balance Sheet annual
summary |
|
|
|
|
|
|
|
|
|
Scenario A - 90%
Confidence Level |
|
|
|
|
|
|
|
|
|
|
2001 |
2002 |
2003 |
2004 |
Assets |
|
|
|
|
Cash and Cash equivalents |
11,162,676 |
2,576,940 |
854,291 |
2,395,608 |
Accounts receivable |
0 |
623,683 |
1,630,443 |
3,172,422 |
|
|
|
|
|
Total
Current Assets |
11,162,676 |
3,200,624 |
2,484,734 |
5,568,030 |
|
|
|
|
|
Intangible
assets |
40,000 |
40,000 |
40,000 |
40,000 |
|
|
|
|
|
Tangible
assets at cost |
|
|
|
|
GITD Network equipment |
3,300,000 |
3,350,000 |
4,689,532 |
7,964,640 |
Leasehold Improvements |
176,000 |
176,000 |
176,000 |
176,000 |
Other computer Hardware / Software |
142,000 |
224,500 |
299,500 |
419,500 |
Furniture, Fixtures & Fittings |
150,000 |
150,000 |
200,000 |
200,000 |
|
|
|
|
|
Less
accumulated Depreciation |
1,529,131 |
3,239,833 |
5,211,165 |
8,523,817 |
|
|
|
|
|
Net
Tangible assets |
2,238,869 |
660,667 |
153,866 |
236,323 |
|
|
|
|
|
Total
Net Assets |
13,441,545 |
3,901,291 |
2,678,601 |
5,844,353 |
|
|
|
|
|
Liabilities |
|
|
|
|
Accounts payable |
282,451 |
378,121 |
474,275 |
634,936 |
Hardware financing |
0 |
0 |
3,000,000 |
1,000,000 |
Accrued expenses |
211,838 |
283,591 |
355,707 |
476,202 |
Total
current liabilities |
494,289 |
661,712 |
3,829,982 |
2,111,139 |
|
|
|
|
|
Shareholders
equity |
9,500,000 |
9,500,000 |
9,500,000 |
9,500,000 |
Additional
paid in capital |
20,000,000 |
20,000,000 |
20,000,000 |
20,000,000 |
Accumulated
profit / (Deficit) |
(16,552,744) |
(26,260,421) |
(30,651,381) |
(25,766,786) |
Total
Stockholders equity |
12,947,256 |
3,239,579 |
(1,151,381) |
3,733,214 |
|
|
|
|
|
Total
Net Liabilities |
13,441,545 |
3,901,291 |
2,678,601 |
5,844,353 |
|
|
|
|
|
|
|
|
|
|
Notes
: |
|
|
|
|
1. No adjustment made for
deferred stock based compensation. |
|
|||
2. Assumes funding of $20
million at end of Q1 2001. |
|
|
Registry Business Model 2001 - 2004 |
|
|
|
||
|
|
|
|
|
|
Income Statement
Quarterly summary |
2001 |
|
|
||
|
|
|
|
|
|
Scenario A - 90%
Confidence Level |
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All amounts in US$ 000's |
|
|
|
|
|
|
|
|
|
|
|
|
Q1 |
Q2 |
Q3 |
Q4 |
Total 2001 |
|
|
|
|
|
|
Revenue |
0 |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
Cost
of Service |
1,348,940 |
1,426,315 |
1,426,315 |
1,426,315 |
5,627,886 |
|
|
|
|
|
|
Gross
Margin |
(1,348,940) |
(1,426,315) |
(1,426,315) |
(1,426,315) |
(5,627,886) |
Gross
Margin % |
N/A |
N/A |
N/A |
N/A |
N/A |
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
Research
& Development |
439,913 |
439,913 |
439,913 |
439,913 |
1,759,654 |
Selling
and Business Dev |
297,115 |
343,990 |
343,990 |
343,990 |
1,329,087 |
Marketing
and Promotion |
250,000 |
500,000 |
250,000 |
500,000 |
1,500,000 |
Finance
& Administration |
352,269 |
352,269 |
352,269 |
352,269 |
1,409,077 |
Executive
Management |
154,760 |
154,760 |
181,260 |
181,260 |
672,038 |
Depreciation |
32,750 |
35,875 |
37,333 |
39,000 |
144,958 |
Total
operating expenses |
1,494,058 |
1,790,933 |
1,567,433 |
1,817,433 |
6,669,856 |
|
|
|
|
|
|
Operating
Profit |
(2,842,998) |
(3,217,248) |
(2,993,748) |
(3,243,748) |
(12,297,742) |
|
|
|
|
|
|
Taxes
(@ 42%) less C/fd loss |
0 |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
Net
profit |
(2,842,998) |
(3,217,248) |
(2,993,748) |
(3,243,748) |
(12,297,742) |
Net
Profit % |
N/A |
N/A |
N/A |
N/A |
N/A |
|
|
|
|
|
|