The Prepaid Press - November 15, 2007 - (Page 18)

TELECOM & TECHNOLOGY November 15 · 2007 - 18 THE STATE OF PREPAID TECHNOLOGY by Ken Osowski Caveat Emptor WhenNegotiating IP Licensing How (And Whether) You Proﬁt Depends On How You License application server’s central processor just once per call to get call processing scripts, the instructions for completing a call based on the subscriber’s account status, service provider policies, call path preferences, etc. Conversely, applications based on Java using SIP Servlets tend to hit processors continuously when executing a call. As a result, XTMLbased SIP application sessions can typically support better concurrent call densities on the same exact processor than Java-based applications, so you typically save both on session licenses versus user licenses, and you don’t need as much hardware for deploying an XTML-based solution versus the Java SIP Servlet platform. In combination, these Cap-Ex gains can signiﬁcantly impact overall proﬁtability. To really analyze & understand session licensing vs. user Whether they’re launching a new prepaid service business, migrating existing customers or implementing a ‘cap and grow’ strategy, Prepaid Service Providers are drawn to SIP-based IP services and service delivery networks for their ﬂexibility and ﬁscal advantages. We’ve recently reviewed how IP networks give prepaid service providers far greater freedom to respond to competitive threats, and new ﬂexibility to aggressively, rapidly pursue new types of proﬁtable services and customer sectors. But probably the single biggest draw for IP service delivery platforms is how IP networks and SIP application servers can help prepaid service providers wring costs from their operational and capital expenses. But beware: the operational word in this last sentence isn’t ‘wring,’ it’s ‘can’… as in maybe. The same basic truths apply when purchasing telecom service capacity as with any other good or service: it’s not what you buy, but what you get for the money that determines the value of a purchase and its potential to drive profitability. In IP services, there are two basic service licensing models: user (or seat) licenses and session licenses. Every prepaid service application has sessions and – we hope – users consuming them. Session and User Licensing are merely two different pricing models by which vendors sell and prepaid service providers buy session capacity to serve The user license (also called a seat license) is an enterprise-centric model that takes a different approach, using a per user licensing model. So in the case above, a prepaid platform provider might charge for 40,000 users. The important difference between user and session licensing models is that user licensing typically deﬁnes the upper-most capacity that a service is projected to need to support, and requires pre-payment for demand levels that may not be realized either initially or over the long term. For this reason, the user license model is typically less attractive to service licensing pricing models, it’s helpful to brieﬂy review the dominant IP call processing technologies. (For a more in-depth review, see The Prepaid Press, September 2007, “A Look Under the Hood at Java and XTML: Why Application Engines Matter to Prepaid Services”). XTML-based SIP application sessions can typically support better concurrent call densities on the same exact processor than Java-based applications Other key criteria such as performance, feature ﬂexibility, partitioning to support channel and service expansion, and language supports will of course help guide the decision about what you’ll buy. A clear understanding of the economics of user and session licensing will help ensure that you know what you’ll actually get. Ken Osowski is the VP of Marketing & Product Management at Pactolus Communications Software. He can be reached at Keno@pactolus.com. T&T in Brief Wave2Wave Communications and RNK Communications have merged. Wave2Wave, headquartered in Hackensack NJ, is a provider of managed data transport and VoIP services to business clients and end-users throughout the United States. RNK, headquartered in Dedham, MA, is a facilities-based Competitive Local Exchange and Interexchange Carrier, providing voice services worldwide. Each company will keep its corporate identity while capitalizing on the strengths of the other. By combining Wave2Wave’s data transport and VoIP focus with RNK’s telecom expertise, the companies say that the merger will make a major impact on the enterprise marketplace. Exact terms of the transaction have not been disclosed. Management of both companies will remain intact and continue to operate as separate subsidiaries. Wave2Wave - www.wave2wave.com RNK Communications - www.rnkcom.com AppTrigger, Inc., a developer of application connectivity solutions for the telecom marketplace, has been chosen by Unisys to be the featured technology partner in its upcoming Application Session Controller (ASC) product release. With this collaboration, AppTrigger’s core technology will power the Unisys ASC, a scalable, carrier grade network element that enables IMS, VoIP, and legacy intelligent network (IN) applications to be resistant from the changes in converging networks. The Unisys Application Session Controller provides Unisys’s customers the ability to seamlessly migrate and modernize their existing Unisys network platforms. AppTrigger - www.apptrigger.com Vertek Corporation, a provider of end to end business outsourcing solutions for the telecom industry, has made enhancements to its Vertek Partnership Assurance offering (VPA), formerly known as Managed Business Assurance (MBA), to ensure the proﬁtability and viability of partnerships formed for the delivery of new digital content and other services. VPA is a part of Vertek’s Business Assurance offering that also includes Vertek Financial Assurance, formerly known as, Managed Financial Assurance, (MFAP). Vertek’s VPA is a hosted, managed service solution that manages thirdparty partnership relationships. The new Release 3.0 of VPA builds on its web-based portal for key performance reporting and analysis of a carrier’s growing partnership-based service offerings. With the new Release, Vertek says its users now have a more functional, visually appealing, and easier to navigate interface for accessing dashboards, charts, detailed reports, and operational analytics. Vertek - www.vertek.com CrossFone, a trademarked division of Latin Node, Inc., which offers telecommunications services via IP technology and global network from its headquarters in Miami, FL, has introduced its suite of communications services to U.S. and Latin American consumers. Crossfone’s products include: RapiFone, DirectFone, inFone and VIPhone. RapiFone is a pay as you go plan that provides a pinless service for international and domestic calls and the “RapiFone Max” plan which gives customers the option of talking all month long for one low price to the country of their choice; DirectFone offers customers an inexpensive option to have a phone number in the same area as their family and friends back home; inFone is an internet Telephone Service designed to provide Local and Long Distance Calling through a Customer’s existing broadband connection; and VIPhone allows customers to place and receive calls wherever they go through their computer. CrossFone – www.crossfone.com Latin Node – www.latinode.com …the differing call processing approaches directly impact which pricing method a vendor uses to license their services to prepaid service providers providers, both because its rigidity requires prepaid service providers to pay upfront for capacity they may not need, and because it prohibits multi-service providers from dynamically sharing call capacity among services based on subscriber demand. What Lies Beneath: How Technology Impacts Call Capacity Can you tell your preferred vendor which licensing approach you want to use in buying service capacity? For the most part, the answer is no. Since we know that every prepaid service application has sessions and – we hope – users consuming them, it’s helpful to think of these two purchasing structures as reﬂecting two different underlying call processing technology models. And as you’d probably assume, the differing call processing approaches directly impact which pricing method a vendor uses to license their services to prepaid service providers. Typically, there’s a direct relationship between the licensing model and the underlying technology on which the service application and SDP are based. In general, SIP applications based on the telecom-centric eXtensible Telephony Markup Language (XTML) standard tend to hit the It’s not what you buy, but what you get for the money that determines the value of a purchase and its potential to drive proﬁtability. their customers. Session licensing is essentially a capacitybased model: service capacity is sold per active ‘session,’ and each session supports multiple users over time. A 1,000 session license can likely support anywhere from 10,000 to 40,000 prepaid long distance users, depending on a speciﬁc vendor’s service application and the underlying technology on which the service delivery platform is based. http://www.vertek.com http://www.wave2wave.com http://www.rnkcom.com http://www.apptrigger.com http://www.crossfone.com http://www.latinode.com

Table of Contents Feed for the Digital Edition of The Prepaid Press - November 15, 2007

The Prepaid Press - November 15, 2007 Online Wireless Recharge It's a Wrap for Gift Cards Contents GENERAL PREPAID Prepaid 101: Merchandising Regulatory Rundown: Wireless Broadband, LNP, Internet Taxes, and Stored Value Legislation Guest Editorial: Honest Minutes: "The Times They Are A-Changing" 5 Minutes With Daniel Neal, CEO of kajeet The Legal Line Prepaid Wireless Roundup WIRELESS Wireless in Brief 011 Mobile Launches Mobile International Dialing Hop-on Adds GSM Phone to Product Line Virgin Mobile USA Launches New Services kajeet Adds to Handset Line MarketStar Publishes Mobile Phone Usage Study Nokia and Cellfire Team Up Verizon Selects Firethorn iVisionMobile Launches Messaging Platform Sprint Expands "Unlimited by Boost" INTERNATIONAL Spot Rates NOMAD Brings MasterCard EMS to Europe R&M Finds Potential in Africa International in Brief TELECOM & TECHNOLOGY Caveat Emptor When Negotiating IP Licensing T&T in Brief MySpace and Skype Ink Deal Octastic Announces New Media Gateway DSP Pactolus Selected by Global Crossing Tadiran Announces New Loyalty Incentive Program Oblio Telecom Launches New Prepaid Products Total Call Enhances Prepaid Calling Cards PAYMENTS A Gift Card Technology Guide Pinnacle and PaySpot Roll Out POS/Prepaid Solution TIO Networks Announces Membership Program TransFund$ Partners with TruckersB2B AMR Finds Retailers Returning to Main Street Payments in Brief Diebold to Offer Prepaid Gift Card Technology InComm to Sell nFinanSe Discover Cards iVisionMobile Offers Retailers Mobile Payments i2c to Offer Stored Value Webinars Mobilians Starts U.S. Mobile Payments Operation NetSpend Increases Savings Program Interest EXTRAS Classifieds Contact Us Our Advertisers

The Prepaid Press - November 15, 2007

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