Frost & Sullivan Names VeriSign Telecommunications Service Provider Company of the Year

Business Wire, Jan 12, 2005

SCOTTSDALE, Ariz. -- Frost & Sullivan will recognize VeriSign with the 2005 Telecommunications Service Provider Company of the Year Award at tonight's Excellence in Information & Communications Technologies Awards Banquet.

VeriSign receives the Award for its performance and leadership in creating and marketing its third-party mediation offerings -- network, database, billing, and content services to wireless and wireline subscribers -- to the telecom industry.

VeriSign is likely the only company in the market currently that can effectively manage the integration of networks, protocols, content and supporting services while meeting compliance requirements. Through VeriSign Communications Services (VCS), VeriSign has positioned itself well to provide a single platform that can help reduce telecommunications carriers' costs and provide them with a solution for managing complexity.

"It is evident that overlaying the current diverse systems with an intelligent and scalable infrastructure is necessary for telecommunications service providers to reach the next level of growth and functionality," notes Frost & Sullivan's Telecommunications Services Industry Manager Reggie Helton. "Recognizing this need and putting the right infrastructure in place has enabled VeriSign to satisfy customer needs."

The company operates one of the largest telecommunications signaling networks (SS7) in the world, enabling services such as cellular roaming, text messaging, caller ID, and multimedia messaging. Expertise in running the Domain Name System (DNS) for the Internet combined with strengths in security and payment services enables the company to provide a complete and easy-to-deploy service offering.

Through a new service-integration marketing strategy, expanded portfolio of products, and new acquisitions, VCS has broadened its available worldwide market over the last 3 years. In June 2004, VeriSign acquired Jamba!, Europe's largest wireless content mediation company with over eight million active registered subscribers. In 2005, VeriSign plans to utilize Jamba! to assist carriers in the United States in capitalizing on consumers' increasing demands for mobile content.

While many communications companies saw shrinking revenues during this time period, VeriSign has challenged its competition, even in high growth areas of the market, such as wireless data, by implementing an aggressive campaign to capture market share, resulting in increased service specific revenue.

"VeriSign had a great year in 2004 and this award further validates our commitment and strategy to telecommunication providers," said Vernon Irvin, Executive Vice President and General Manager, VeriSign Communications Services. "We believe that our secure Intelligent Communications, Commerce and Content(SM) Services are providing both great value and growth opportunities to our customers."

Today, VeriSign's is the largest independent mobile content mediation platform in the world with over 14 tier-one carrier relationships in 10 countries servicing more than 28 million content billing transactions per quarter. The company operates the largest independent calling name database in the United States with over 40 million names and has reciprocal agreements in place with regional bell operating companies and most major independent databases in North America.

By subscribing to VeriSign's service, carriers can offer enhanced caller ID, a high-margin, in-demand service, often without building additional infrastructure or increasing administrative workload. VeriSign recently announced Inter-Carrier Multimedia Messaging Service, an inter-carrier service allowing conversion from GSM to CDMA, and carriers to enable subscribers to send rich media through messaging on mobile devices. This service solves many of the problems of MMS interoperability between networks.

Through its IP Connect Suite, VCS also uses directory services, secure network infrastructure, and telecommunications signaling expertise to enable VoIP networks to interconnect and to interoperate under most protocols and network topologies.

Overall, VeriSign experienced substantial revenue growth in 2004. Over half of its record operating income of $64 million and operating cash flow of $84 million by Q3 2004 came from VCS. VCS ended Q3 with a base of approximately 6.4 million wireless billing customer subscribers up from a Q2 base of 6.3 million.

Frost & Sullivan presents its Company of the Year Award each year to a company that has demonstrated excellence within its industry based on numerous factors including business development, competitive strategy, and market leadership. The Award recognizes outstanding management, consistent growth, and positive social and economic impact on local and national communities and customers. It also acknowledges exceptional customer service and knowledge that enable the recipient to take advantage of market changes.

Held in Scottsdale, Frost & Sullivan's 2005 Excellence in Information & Communications Technologies Awards Banquet honors world-class companies for outstanding performance and achievements in the information & communications technologies markets. An annual event, the banquet recognizes the quality and merit of distinguished individuals and companies.