Compaq Marks Industry 'Firsts' in Global Telecommunications
Compaq Real-Time Solutions Are Deeply Embedded
in Wired and Wireless Network Infrastructure
HOUSTON, March 12, 2002
Demonstrating its commitment to deliver the real-time enterprise, Compaq Computer Corporation (NYSE: CPQ) recently marked several milestone achievements in its worldwide telecommunications business. Citing industry analyst reports, Compaq noted market leadership in five key areas of network infrastructure: 1) off-switch Intelligent Networks; 2) mobility management; 3) network/service management; 4) signaling middleware; and 5) authentication/fraud management, as well as major innovations in mobility solutions for business enterprises.
In its 25 years of experience, Compaq has leveraged a broad array of solutions, platforms, and professional services into carrier-grade partnerships with more than 200 major communications companies, including the largest 50 in the world.
"Our high end enterprise solutions drive many of the most mission-critical environments in the worldand nowhere is that more true than in telecommunications," said Howard Elias, senior vice president and general manager of Compaq's Business Critical Solutions Group. "Compaq solutions are deeply embedded in the network infrastructure, doing the heavy lifting for tens of millions of wired and wireless telephone users." Elias added, "Outside the industry, people don't usually associate Compaq and telecom, but the world's service and equipment providers are well acquainted with Compaq's telecom capabilities. They know Compaq has the carrier-grade expertise to deliver next generation solutions that leverage the network for maximum business value."
Compaq leadership milestones include:
- Off-Switch Intelligent Networks: In the early 1980s, when carriers first began to offload non-signaling operations from the core switch, Compaq was the first to deliver the key off-switch, network nodes called Service Control Points (SCP). Compaq is now the industry leader with more than 425 SCPs deployed and 39 percent market share.(1)
- Mobility Management: Compaq was the first to build an off-switch HLR (Home Location Register). As the heart of any wireless network, the HLR hardware and software manages all the mobility services of users. Compaq's HLR is the market share leader in off-switch mobility management for ANSI-41 markets. Today, the Compaq HLR manages wireless services for more than 70 million subscribers in 20 countries across four continents.
- Network/Service Management: Carriers worldwide need to manage complex, multi-technology networks that combine both voice and data. Compaq's own TeMIP solution, which includes both software and hardware, has emerged as the industry leader in network and service managementwith more than 160 networks deployed worldwide. Eight out of the world's ten largest international carriers now have deployed TeMIP.
- Authentication/Fraud Management: Compaq is the market leader in authentication solutions that reduce fraud. In the IS-41 Authentication Center market, Compaq has a 48 percent share at the sales channel level.(2) Compaq fraud solutions serve 44 carriers worldwide and protect phone service for more than 90 million customers.
- Signaling Middleware: Compaq is the world leader in SS7 stack software with more than twice the share of its nearest competitor.(3) SS7, or Signaling System 7, is the industry standard call/session control technology for telephone services. Compaq's primary implementation of SS7 is called IN7.
- Wireless 911: Compaq has emerged as the wireless location solutions leader in CDMA networks in North America. Driven by Federal mandate and the prospect of commercial revenues, carriers are deploying E911 services for their customers. The Compaq Discovery Location Services solution has won all major carrier contracts thus far.
- Short Message Service (SMS): Compaq has become a preferred partner for SMS solutions around the world: two out of the three largest SMSC suppliers in the GSM market use Compaq platforms.
- Real-Time Telco: Compaq built the industry's first real-time engine based on Zero Latency Enterprise (ZLE) technology. Handling a simulated 1.2 billion call detail record (CDR) transactions per day (equal to the world's five largest telecommunications companies combined), its 111-terabyte real-time database demonstrated that it could support 40,000 customer service agents with sub-second response times, enabling them to provide customers with meaningful, highly personalized information in real time. Carriers believe that a ZLE-based CRM (customer relationship management) capability would reduce customer churn and improve profitability by up to 15 percent.(4)
- Prepaid Wireless: Compaq's IN Prepay solution has recorded several technology firsts, and is now serving approximately 10 million subscribers worldwide. On New Year's Eve, 2002, the Compaq solution showed its real-time billing capability, processing 15 million messages in a three-hour period with 100 millisecond response times.(5)
Compaq Leverages Telco Leadership to Drive Mobility Solutions for Enterprises
As both an IT (information technology) company and a telecommunications solutions company, Compaq is in a unique position to lead in the "mobilization" of companies around the world. In this huge market, business enterprises clearly see the business benefits of anytime, anywhere information access, and they are deploying their own wireless infrastructure that links their mobile professionals with company e-mail, enterprise resource applications, intranets and the Internet itself.
Compaq is emerging as a leader in enterprise mobility because it has a broad end-to-end capability that is very attractive to companies that are looking for turnkey solutions that deliver business benefit quickly. At one end, there are the Compaq wireless access devices themselves, iPAQ Pocket PCs and wireless Evo notebook PCs. In between, Compaq has a wide array of wireless enterprise mobility solutions, partnerships and professional services.
At the other end, there is Compaq's telecommunications expertise and relationships. As carriers themselves address the enterprise market, Compaq's telecommunications presence will become increasingly valuable as part of the company's end-to-end mobility solutions leadership.
Founded in 1982, Compaq Computer Corporation is a leading global provider of information technology products, services and solutions for enterprise customers. Compaq designs, develops, manufactures and markets information technology equipment, software, services and solutions, including industry-leading enterprise storage and computing solutions, fault-tolerant business-critical solutions, communication products, personal desktop and notebook computers, and personal entertainment and Internet access devices that are sold in more than 200 countries directly and through a network of authorized Compaq marketing partners. Information on Compaq and its products and services is available at http://www.compaq.com.
1 Technical Marketing Inc., IN Market Share Report 1997-2000
2 Technical Marketing Inc., IN Market Share Report 1997-2000
3 VDC, July, 2001
4 Gartner Consulting, 2001
5 Bloomberg News, Jan 4, 2002
Compaq and the Compaq logo are trademarks of Compaq Information Technologies Group, L.P. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies. This document contains forward-looking statements that involve risks, uncertainties and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks, uncertainties and assumptions include the possibility that the Hewlett-Packard/Compaq merger does not close or that the companies may be required to modify aspects of the transaction to achieve regulatory approval or that prior to the closing of the proposed merger, the businesses of the companies suffer due to uncertainty; the market for the sale of certain products and services may not develop as expected; that development of these products and services may not proceed as planned; that Compaq and Hewlett-Packard are unable to transition customers, successfully execute their integration strategies, or achieve planned synergies; other risks that are described from time to time in Compaq and Hewlett-Packard's Securities and Exchange Commission reports (including but not limited to Compaq's annual report on Form 10-K for the year ended December 31, 2001, HP's annual report on Form 10-K, as amended on January 30, 2002, for the fiscal year ended October 31, 2001, and subsequently filed reports). If any of these risks or uncertainties materializes or any of these assumptions proves incorrect, Compaq's results could differ materially from Compaq's expectations in these statements. Compaq assumes no obligation and does not intend to update these forward-looking statements.