Orange UK Taps WaterCove Networks To Deliver Industry's First Real-Time Prepaid Wireless Data Services

Business Wire, Dec 19, 2002

Business Editors/High-Tech Writers

CHELMSFORD, Mass. & BRISTOL, U.K.--(BUSINESS WIRE)--Dec. 19, 2002

UK's Largest Mobile Operator Deploys Leading Mobile Data Service System to Unlock Enormous Market Opportunity; Prepaid Subscribers Now Enjoy High-Value Data Services

Representing a significant milestone in the adoption of wireless data services, WaterCove Networks today announced that its Mobile Data Service System has been deployed by Orange UK -- the largest operator in the UK serving 13.1 million subscribers -- to provide home network-based, prepaid data services billed in real time.

By doing so, Orange UK's prepaid customers are the first in the world to have access to a full suite of GPRS data services, such as mobile email, Internet access, alerts and photo messaging.

Until now, operators have been unable to provision GPRS data services for prepaid subscribers. This is an especially critical obstacle to overcome, since prepaid customers represent such a sizable percentage of wireless carrier revenues. The WaterCove Mobile Data Service System enables rapid time to market for new data services, including real-time prepaid data and multimedia messaging services (MMS), while providing a flexible and scalable platform that can be rapidly deployed and grow quickly to meet carriers' and subscribers' evolving needs.

In addition to providing the efficient management and accounting of prepaid subscribers' data usage and decrementing credit accounts in real time, the WaterCove system provides real-time metering , which helps operators protect against revenue loss due to fraud - a challenge that carriers have faced with prepaid services.

"Orange UK has established a reputation for constantly adding value for our subscribers," said Graham Baxter, Head of Network Design and System Infrastructure with Orange UK. "WaterCove Networks is helping us take a big step forward with home network-based prepaid data services. We look forward to using the WaterCove Mobile Data Service System as we consider a range of flexible service plans and wirefree(TM) data communication services for our contract and prepaid subscribers alike."

"We're honored that WaterCove's system is providing Orange with the capabilities it requires for creating new, revenue-generating mobile data services that enable it to maintain a competitive edge in the market," said WaterCove Networks President and CEO Peter Lojko.

Profiting From Prepaid

Prepaid subscribers represent a dominant segment of the world's wireless voice and data users. According to a July 2002 report from Analysys, prepaid customers comprise 63% of the subscribers in Western Europe alone. The research group further predicts that European telecommunications operators could sacrifice as much as $15.7 billion dollars in lost revenue if they fail to offer Europe's 170 million prepaid subscribers new mobile data services.

Until now, operators have been unable to overcome the technical challenges limiting their ability to efficiently increase the average revenue per user (ARPU) from prepaid customers. The WaterCove Networks Mobile Data Service System provides Orange UK with the capability to granularly meter prepaid services in real time As a result, Orange UK can now deploy more effective pricing and service models, create and experiment with new service offerings, and scale quickly to meet consumer demand as warranted.

Underscoring the company's leadership and presence in the region, WaterCove Networks recently announced the opening of a wholly-owned subsidiary, WaterCove Networks UK, LTD (see: "WaterCove Opens UK Subsidiary" http://www.watercove.com/pr_102402.html). The new subsidiary will facilitate WaterCove's ability to provide best-in-class customer service and support to Orange UK, while expanding WaterCove's European-focused business development initiatives.

Note to Editors

On December 17, 2002, Orange UK announced their plans to offer pay as you go data services for GPRS.

About Orange

-- Orange, wirefree and any other Orange product or service referred to in this release are trademarks of Orange.

-- Orange provides a broad range of personal communications services, including Orange GSM 1800 services and other digital cellular telephone services.

-- In August 2000 Orange plc was acquired by France Telecom, leading to the creation of one of Europe's leading mobile operators. The new Orange has operations in 21 countries across Europe and beyond.

-- As at the end of September 2002, Orange had over 13.1 million customers in the UK, 18.8 million in France and approximately 43.2 million controlled customers worldwide.

-- The Oftel network performance survey, published in June 2002 showed that on a percentage basis, Orange UK had more calls which were successful overall than any UK other operator. In the survey, which was audited by BABT, Orange UK was shown to have an overall call success rate of 97.8% of calls connected and completed successfully. Other networks' comparable figures were Vodafone 97.5%, O2 97.3% and T-Mobile 95.1%.

-- In May 2002, the fifth annual J.D. Power and Associates UK Mobile Customer Satisfaction Study showed that Orange ranks as the number one telephone service for customer satisfaction in the contract sector.

-- In September 2002 Orange UK won the Mobile Choice consumer award for Best Network. Mobile Choice said 'The majority of Orange customers were more than satisfied with the service from the UK's biggest network. Orange received glowing accolades for every aspect of its service - coverage, reliability, customer service and tariffs.

-- Orange UK provides high quality coverage to 99% of the UK population and over 80% of the geographic area. Coverage is based on hand portable, unlike some other operators which choose to base their coverage on boosted car kits.

-- Orange UK now offers roaming in 126 countries on 282 networks.

-- Information about Orange can be found on the Orange website at www.orange.co.uk and media information can be found at www.orange.com

-- For further information, call the Orange media centre on 020 7984 2000