Investor Presentation

February 2014

Safe Harbor Statement

Forward Looking Statements Caution
The Companys fourth quarter 2013 press release and conference call contains certain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding, among other items, product and platform plans, growth prospects, market opportunities, market expansion and its implementation, sales growth, cash flow and cash balances, growth initiatives, sales force, customer opportunities, network capabilities, sales and installations timing, demand, revenue growth, revenue growth rate, margins, expense trends, service disconnections, business trends and fluctuations, liquidity position, future share repurchases and expected capital expenditures. These forward-looking statements are based on management's current expectations and are naturally subject to risks, uncertainties, and changes in circumstances, certain of which are beyond our control. Actual results may differ materially from those expressed or implied by such forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that those expectations will prove to be correct. Important factors that could cause actual results to differ materially from the expectations described in the press release and earnings call are set forth in the section entitled "Risk Factors" in our 2013 Annual Report on Form 10-K and in Risk Factors and elsewhere in our subsequent quarterly reports on Form 10-Q. In addition, actual results may differ from our expectations due to increased customer disconnections, consolidation in the telecommunications or other industries impacting our customers, delays in installation of services, delays in launching new products, inability to achieve the expected benefits of growth initiatives, inability to obtain rights to build networks into commercial buildings, failure to offer competitive new services, decreased demand for our existing services, further economic downturn, unanticipated conditions in debt and equity markets, significant changes in the market prices of our shares, increases in taxes or loss of tax benefits, further declines in the prices of our services due to competitive pressures or otherwise, changes in the rates of taxes and fees that we report on a gross basis, increases in the price we pay for and the extent of our use of facilities of other carriers, inability to hire people with the needed skills to advance our business, increased costs from healthcare reform and higher taxes or further deregulation of the ILECs and other adverse regulatory rulings or legislative developments. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. tw telecom undertakes no obligations to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Todays comments and discussions related to financial performance & trends

Are based on the information from tw telecoms fourth quarter 2013 earnings call, press release & supplemental earnings mat erials and are provided as of December 31, 2013. Do not include any current quarter information or updates, unless otherwise publicly disclosed The press release and supplemental earnings materials can be found at www.twtelecom.com
For a reconciliation of Non-GAAP measures used in this presentation, including without limitation Net Income excluding debt extinguishment and executive retirement costs and the related tax impact, M-EBITDA, Levered Free Cash Flow and Unlevered Free Cash Flow to US GAAP measures see the Q4 2013 supplemental earnings information at www.twtelecom.com under Investors.

Our Platform for Growth

History of Consistent Strong Results 2013 Results
Consistent total revenue growth every quarter for 9 years Driven by Data & Internet Revenue grew 14.1% for year 56% of revenue for Q4 Strong Modified EBITDA margin 35.3% for the year Ongoing Cash Flow Contribution for over 8 years Ongoing Balance Sheet Strength
(3) (2)
(1)

Industry-Leading Products Portfolio ONE Network and ONE Platform

(1) (2) (3) For the year ended December 31, 2013, unless otherwise indicated. See definitions of financial measures in the Companys ear nings release at www.twtelecom.com For the quarter ended December 31, 2013. Of quarterly positive levered free cash flow, excluding strategic market expansion capital lease in Q4 2013, as well as the impact of acquisition-related transaction & integration costs in Q2 2007.

Strategic Market Expansion

A Powerful Nationwide Network

Adding 5 New Markets & Expanding 27 Existing Markets

Rapid Expansion of Market Reach

Expanding metro fiber network Multi-market reach
Leverages needs of multi market customers Expands regional fiber to serve Natl Ethernet Strategy

Northeast & Atlantic

-Boston*, Philadelphia*, Richmond* -Northern New Jersey, Baltimore, Atlanta -NYC Greater Metro Area, Washington DC

Midwest
-Minneapolis/St Paul, Chicago -Indianapolis, Memphis -Louisville, Nashville, Cleveland*

Southwest & So. Central

-Tucson, Phoenix, Las Vegas -Albuquerque, Denver -Colorado Springs, Houston

Serving Enterprise & Data Center & Cloud Strategy

5 new & 27 expanded markets Increases access to businesses near our network

Northwest & Pacific

-Seattle, Spokane, Portland/Vancouver -Boise, Los Angeles, Orange Co. - San Diego, Oakland, Salt Lake City* - San Francisco/San Jose
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* New TWTC Market

Financial Overview of Expansion

Highlights
--2013- $120M Cap-Ex & Capital Lease Obligation recognized in Q4 2013, with payments over 20 year initial term
(1)

--2014 - An Estimated $50M of Cap-Ex to integrate & connect expansion fiber Expect to hire Sales & Operational Support to support this project Expect Incremental Sales or Bookings Contribution from project in the 2nd half of 2014 -- 2015 - Expect expansion to generate positive incremental Modified EBITDA

Continued Disciplined Capital Allocation

(1) See the Companys fourth quarter earnings release for a definition of these and other terms at www.twtelecom.com

Our Products

Ethernet Eco System

On-Net Access
~20,300 On-Net Buildings
(1)

Industry Leading Ethernet Services Portfolio World Class Customer Care (1) More than 30,000 Fiber Miles
- Ethernet NNI - Special Access

Cloud Access
~470 3rd Party Data Centers

Internet Platform

Local Reach
- Extending our reach with Ethernet Partners

Enterprise Networking
- Thousands of Enterprise owned Corporate Data Centers

Global Reach
-Top 10 Most Connected Internet Backbone -MPLS IP VPN Partners with Global Reach

(1) As of December 31, 2013

Our Intelligent Network

Phase I Enhanced Management Launched - Q2 2012 Enhanced - Q1 2013 - Proactive notification feature Phase II Dynamic Capacity Launched - Q3 2012 Enhanced - Q2 2013 - Automatic alert driven feature - Extended capacity to 10 Gig ports

Phase III Applications Aware Networking Planned Future Offering

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A Look at Dynamic Capacity

Ordering via MyPortal Customers can scale capacity on demand Provides appropriate budgeting information

Real time performance management Highlights bandwidth utilization during increased consumption period
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Our Vision Linking it All Together

The Intelligent Network
Enhanced Management

Disruptive Telco Model *

Ethernet First Connectivity
On-Demand Connections Click and Connect

Constellation Platform

sm*

Constellation Platformsm

Dynamic Capacity

~470 Fiber Connected 3rd Party Data Centers

Access to Broad Applications Environment

Use what you need For as long as you need
Applications Aware *

Storage

Compute

Software

Incrementally pay only for what you use

On-demand dedicated access to enable world class Best of Breed applications By the slice, By the hour

* Future capabilities Under Development

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Our Constellation Platformsm Vision*

Constellation Platform
Constellation Platform *
Click and Connect New Instantaneous Network Connections On-Demand Access Data Center and Cloud Application Partners

Intelligent Network
Enhanced Management Dynamic Capacity Application Aware*

2 Mb to 10 gig Fractional 10 Gig

Strategic Services
Ethernet / IP VPN

MPLS CoS One to Many

Powerful Foundation
Integrated Common Systems Consistent Element Deployment ~20,300 Fiber connected buildings ~470 3rd party data centers

* Future capabilities Under Development

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TWTC One to Many Ethernet Access

- A Single Connection for National Access Rolled Out October 2012

TWTCs National Ethernet Backbone

Extended Reach throughout our 75 US markets
Rapid 15 day on-net turn up interval

Customer Benefits
Reduces National CapEx Deployment Costs Reduces Operating Expense Reduces Time to Service Reduces Operating Complexity

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2013 New Product Launches

Intelligent Network & Constellation Platform sm

Enhanced Mgmt. Alerts

Enables customers to establish customized network performance thresholds with automatic notification

10 Gig Dynamic Capacity

Extends ability to flex up bandwidth over a 10 Gigabit port

Alert Driven Dynamic Capacity

Customers are able to automatically increase bandwidth through pre-set thresholds at which bandwidth is increased

Constellation Platformsm
Prototype demonstration with data center and cloud applications partners at Cloud Expo in June

DDoS Scrubbing
Data IP
Proactive security function to mitigate unwanted traffic automatically on enterprise IP networks

High Capacity 40/100 Gigabit Ethernet

40 or 100 Gigabit metro Ethernet connectivity

Multi-VPN Port
Private interconnection of VPNs to centralized resources or applications

Multicast
One to many content transmission / streaming to a subscribed group of participants

eLynk

sm*

Private data solution that securely connects multiple end-users to centralized resources or applications

Managed Services

Enterprise SIP Trunking

Fully managed enterprise Voice over IP Trunking service with plug and play connectivity for wide range of IP PBXs

Converged Services SIP Trunking

Fully managed Converged solution supporting any combination of Voice over IP, Data, Internet & Security services

FlexVoice
Fully managed Voice T-1 and Analog Line services with ability to mix & match both line and trunk services to application. Includes upgrade path to SIP services.

2013
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Financial Overview

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A Balanced Approach to Growth

Shareholder Value Creation -- A Balancing Act
Grow Revenue Continue Product & Customer Experience Leadership Margins Cash Flow Capital Intensity ROIC Share Repurchases

Innovate to win Market Share

Invest to Scale

-- Our Scorecard To Date (1) - Financial Strength

Market Leadership Unique Fiber Assets & Extensive Reach Integrated Operating Platform Innovative Products & Capabilities

Revenue 37 Qtrs. Of Growth (3) Enterprise Revenue 46 Qtrs. Of Growth (3) Strong M-EBITDA margin 35.3% for 2013

Strong Balance Sheet

Highly skilled sales organization

(1) As of December 31, 2013 (2) For a definition of M-EBITDA and a reconciliation to US GAAP measures see the earnings press release and the supplemental earnings information at www.twtelecom.com (3) Consecutive sequential quarterly revenue growth

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Revenue Growth by Line of Business

(1) For Quarter Ended December 31, 2013 (2) Calculated on trailing 12 months as of December 31, 2013

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Revenue Growth by Customer Type

$ millions
% of Revenue Q413 3 Year CAGR (2)

81%

9%

Carrier 17% Intercarrier Compensation 0%

2%

(4%)

Enterprise revenue represented 81% of total revenue (1) and grew at a 9% CAGR over the past 3 years
(1) For Quarter Ended December 31, 2013 (2) Calculated on trailing 12 months as of December 31, 2013

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Investing in the Network Effect

Growing our Fiber Core
Expanded On-Net Fiber Connected Buildings Created Assets vs. Network Access Spending

Leveraging/Scaling Markets
Strong 35.2% M-EBITDA margin (1) Top markets provide strong cash flow Middle & bottom markets contribute significantly to revenue growth

# of on-net fiber connected buildings

YOY

Sequential

Grew ROIC over the past 5 years

ROIC (pre-tax)(2)

(1) (2)

For quarter ended 12/31/13. For definition of Modified EBITDA margin and reconciliation to US GAAP measures see the earnings press release & supplemental earnings information at www.twtelecom.com ROIC for 2013, excludes the $119.8 million capital lease recorded as a capital investment

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Time & Investment = Scale & Growth

-- M-EBITDA Margin ranking held constant since 2007-Ranked in 2007 by M-EBITDA Margin
($ millions)

Initial Ranking 2007

Recent Market Results 2012 2013

Market Density

Capex % of Revenue

UFCF(2) Contribution

75 Local Markets (1) (3)

Revenue

Top 25 Markets
$652 $371 $792 $466 $816 $475
Highly Scaled Below Company Average Highest Contributing

1/3

M-EBITDA

M-EBITDA margin

57%

59%

58%

Middle 25 Markets
Revenue $317 $123 39% $437 $200 46% $466 $215 46%
Scaling

1/3

M-EBITDA M-EBITDA margin

Near Company Average

Contributing

Bottom 25 Markets
Revenue
$115 $241 $282

1/3

M-EBITDA
M-EBITDA margin
Corporate/Central Operations

$21
18% ($176) $1,084 $339 31.3%

$82
34% ($207) $1,470 $541 36.8%

$98
35% ($235) $1,564 $553 35.3%

Sub Scale

Above Company Average

Contributing

Corporate/Central Operations
Total Revenue M-EBITDA (3) M-EBITDA margin
2013 M-EBITDA margin Reflects Impact of 2013 Growth Initiatives

(1) Market-level results are prior to corporate costs & centralized operations and other corporate allocations (2) Unlevered Free Cash Flow is defined as M-EBITDA less capital expenditures. For 2013, this excludes a $119.8 million capital lease recorded as capex (3) For a reconciliation to US GAAP measures see the supplemental earnings information at www.twtelecom.com

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Local Market Progress

Market Level Results as of year end 2007 and 2013
(1)

Top 25 market

Bottom 25 market

Bottom 25 market

Austin
2007 to 2013 2007

Denver
to 2013 2007

Las Vegas
2013

M-EBITDA Margin Capex / Revenue UFCF/Invested Capital (2) Fiber Route Miles (3) Buildings On Net (3)

58% 13% 50% ~850 ~360

... ... ... ... ...

59% 13% 63% ~840 ~590

21% 35% (7%) ~140 ~70

... ... ... ... ...

44% 33% 10% ~260 ~210

15% 22% (2%) ~80 ~30

... ... ... ... ...

46% 37% 4% ~240 ~210

Scaling the Business

Launched in 1994 Includes Xspedius market from acquisition 11/06 Consistent investment over life of market Significant cash flow and Capital efficient

Greenfield market in 01 Market temporarily put on hold then restarted in approx. 04 Generating cash Developing market

Xspedius acquisition in 06 Low Network Density Developing market Generating cash

(1) Market-level results are prior to corporate costs and centralized operations and other corporate allocations (2) Unlevered Free Cash Flow (UFCF) is defined as M-EBITDA less Capex. Invested Capital is defined as net property, plant & equipment, intangible assets & goodwill (3) Certain prior year fiber route miles & on-net buildings were restated due to prior year alignment of key operating systems

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Revenue Mix Q4 13
Revenue Mix

Data & Internet Revenue Represents 56% of Total Revenue

Grew 13.1% YOY, 3.6% sequentially

Strategic Services(1), a subset of Data & Internet revenue
$223.7 $215.9

Data & Internet Revenue

($ in millions)

Grew 17.9% YOY and 3.8% sequentially

Up 13.1% YOY

$197.8

Q4'12
(1) Ethernet & VPN-based products

Q3'13

Q4'13
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Annual Capital Investing

Full Year 2010 Full Year 2011 Full Year 2012 Full Year 2013

($ in millions)

Short to Medium Term Success Based

Building Entry & Network Capacity (including fiber, electronics & labor) Longer-term Strategic Product Investment, life-cycle & market expansions IT Corporate Investment/Other Total before Capital Lease Cap-ex as a % of revenue Strategic Market Expansion Lease Total Capital 44 26 $322 25.3% $322 34 35 $343 25.1% $343 46 33 $343 23.4% $343 62 33 $382 24.4% $120 $502

$252

$274

$264

$287

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Revenue & Customer Churn

2011 Annual revenue churn 0.9% 2012 Annual revenue churn 0.9% 2013 Annual revenue churn 0.9%

1.1% 1.0% 1.0%

1.0%

1.0% 1.0%

1.0%

1.0%

0.9% 0.9% 1.0% 0.8% 0.9%

0.8%

0.9% 0.9%

0.9%

0.9% 0.9% 0.8%

0.8% 0.8%

0.9%

0.8%

0.3% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2%

Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013
Mo. Custom er Churn (1) Avg. Mo. Revenue Churn (2) Avg. Mo. Revenue Churn from customer fully disconnecting (3)

(1) Customer churn reflects average monthly customer turnover compared to the average monthly customer count for the period. (2) Revenue churn reflects average lost recurring monthly billing from customers partial or complete disconnection of services (excl. repricing & usage) compared to reported revenue for the period. (3) Revenue churn for customers fully disconnecting reflects average lost recurring monthly billing from customers complete disconnection of services compared to reported revenue for the period.

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Key Operating Statistics Q4 13

Q4 2013 (1)

Revenue
Total Revenue 37th consecutive quarter of sequential growth 5.9% growth YOY, 1.7% sequentially ~70% on-net Revenue by Product Line 56% Data & Internet Services 23% Voice Services 19% Network Services 2% Intercarrier Comp Data & Internet Revenue 13.1% growth YOY, 3.6% sequentially Strategic Ethernet & VPN 56% of Data & Internet Revenue 31% of Total Revenue 17.9% growth YOY, 3.8% sequentially

Revenue
Customer Revenue 81% Enterprise 17% Carrier 2% Intercarrier Comp Enterprise Revenue 46th consecutive quarter of sequential growth 7.5% growth YOY, 2.1% sequentially Carrier Revenue Flat YOY, 1.4% growth sequentially 27% from wireless providers Revenue Mix Data & Internet Services 88% Enterprise/12% Carrier Network Service 46% Enterprise/54% Carrier Voice Services 98% Enterprise/2% Carrier

Margin/Other

(1)

35.2% M-EBITDA margin 1.7% M-EBITDA growth YoY Levered Free Cash Flow (LFCF) of ($90.3M), or $29.5M excluding $119.8M capital lease Net Income of $15.4M $0.11 Earnings Per Share

Balance Sheet

(1)

$479.0M cash & near cash(2) 6.1x Interest Coverage 2.6x Net Debt/M-EBITDA $100M undrawn revolver Term Loan Floating Rate Eurodollar +2.50% Effective rate 2.67%
(1)

Annual Results

Usage Revenue 3% of total revenue

6.4% Total Revenue growth 8.2% Enterprise revenue growth 14.1% Data & Internet revenue growth 2.2% M-EBITDA growth 35.3% M-EBITDA margin Net Income of $36.5M, or $64.4M excluding Debt Extinguishment & Executive Retirement Costs, net of tax

(1) (2)

As of December 31 or for the quarter then ended. See definitions of financial measures in the Companys earnings release at www.twtelecom.com & reconciliations to US GAAP numbers as well as net debt and interest reconciliations elsewhere in this presentation. Refers to cash, equivalents & short-term investments

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