Bridgewater Systems Announces Solution to Support Mobile Virtual Network Operator Business Model; Deploying Solution at First Site; Offering Generally Available

Business Wire, June 28, 2004

OTTAWA -- Bridgewater Systems(TM), a provider of dynamic IP and data service fulfillment and assurance solutions, today announced the general availability of its solution to support the newly emerging high-speed data Mobile Virtual Network Operator (MVNO) business model.

MVNOs are mobile operators that do not maintain their own network infrastructure such as radio equipment. MNVOs could include large retailers, cable operators and consumer goods companies with important brands. Unlike simple resellers of telecommunications services, MVNOs offer their own unique content or marketing cachet to subscribers and often serve specific target markets or interests. Service providers benefit by selling otherwise unused network capacity to MVNOs.

"The MVNO business model has become an increasingly popular way of introducing wireless services, because it allows carriers to share risk in offering services to segments of the market like the prepaid and youth market, and it enables telecom carriers and stores to leverage their brand names such as AT&T and Virgin. Lastly it has allowed telecom carriers without wireless networks, such as AT&T and Qwest, to offer competitive wireless services that they can bundle with other services, such as DSL," said Tole Hart, analyst, Gartner Inc.

Bridgewater Systems is providing support for the high-speed data MVNO model via its AAA Service Controller, Revenue Collector and Formatter, and Prepaid Data Solutions. The Bridgewater Systems MVNO solution has been deployed with a brand name U.S. customer.

For MVNOs

For MVNOs AAA Service Controller supports their user management and mediation needs. It provides authentication, authorization and account (AAA) management for user access, based on the RADIUS protocols, for dial, CDMA, GPRS, Wi-Fi and DSL networks. This enables MVNOs to ensure that only appropriate users can access content and are then billed for it. It also provides the ability to monitor Home Agent (HA) state and utilization in order to protect against, detect and recover from the failure of an HA.

The Prepaid Data Solution integrates with a wide range of prepaid voice and data billing systems for billing of users by time or data volume. In addition, the offering integrates with applications, such as multimedia messaging services (MMS); BREW and JAVA download services, enabling MVNOs to offer a wide range of services to their subscribers.

For Service Providers

For service providers, AAA Service Controller provides a flexible resource allocation infrastructure, since they need a robust, reliable and traceable method of inter-working with MVNOs. The solution enables them to interact quickly and easily with MVNOs and set up their AAA operations. Once set up, AAA Service Controller ensures accurate billing and avoids disputes between parties.

Revenue Collector and Formatter quickly and affordably integrates with existing service provider systems to aggregate event-based accounting data into single-session records that identify subscribers and their usage. It then filters, formats and streams these records to external billing and settlement systems, providing an affordable alternative to custom or mediation-based solutions. The output also enables service providers to provide network usage visibility to the MVNO.

"Bridgewater Systems products are perfectly suited to the specific needs of MVNOs and the service providers that support them," said Celine Bak, vice president of product, Bridgewater Systems "Having already implemented a system at an MVNO that will be launching services later this year, we understand their unique requirements."

Availability/Pricing

Bridgewater Systems' solution to support the MVNO business model is available immediately. Pricing is based upon an expected return on investment of less than one year.

About Bridgewater Systems (www.bridgewatersystems.com)

Bridgewater Systems provides dynamic IP and data service fulfillment and assurance solutions that enable service providers to generate profits from their networks while enhancing customer loyalty. The Bridgewater Systems product suite includes its market-leading authentication, authorization and accounting (AAA) system and other modular products that provide provisioning, mediation and real time management of network resources. They extract greater value from existing operations support systems (OSS), business support systems (BSS) and network assets to enable service providers to realize new revenue sources. Unlike traditional OSS vendors, Bridgewater Systems' proven products deliver on-demand data services, extensive revenue capture capabilities, out-of-the-box value and can be deployed in weeks -- instead of months.

Bridgewater Systems solutions are currently deployed by more than 20 global service providers, including Verizon Wireless, Bell Mobility, Covad and Telia. Founded in 1997, Bridgewater Systems is a privately held company.

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