Example of a Vendor Profile

in the Dittberner OSS/BSS KnowledgeBase

REDKNEE, INC.

2560 Matheson Blvd East, Suite 500

Mississauga, ON L4W 4Y9, Canada

Tel: +1 905 625 2622

OSS Page	Corporate	Products	Locations
Customers	Partners	Investors	News

1. COMPANY ACTIVITIES

a. Corporate Mission

Redknee Inc. is a developer of communication products primarily for the mobile network industry. Twenty-six mobile operators depend on Redknee's proven infrastructure software to deliver value-added services and content to over 207 million subscribers.

The company’s core competency is in Real Time systems for Content & Media Rating & Charging, Mobile Messaging, Location Technologies, Service & Data Control.

b. OSS/BSS Activities

Redknee’s converged revenue engine, the Unified Rating and Charging System, enables operators to quickly bring to market personalized voice, messaging and content services in real-time.

Redknee allows operators and brand owners to maximize their differentiation and revenue while reducing expenditures by integrating with existing environments. The subscriber experience is improved with Redknee's self-care, loyalty, and analytics that deliver the content and services subscribers want when they want them.

c. Ownership

The company was established in 1999 and is 100 percent employee owned and privately held. Debt financing (non-equity) was provided by:

• HSBC Capital Canada
• MMV Financial Inc.

d. Locations

Major global offices of the company:

• Madrid, Spain

• Dublin, Ireland

• Munich, Germany

• Reading, UK

• Singapore

• Pune, India

• Bejing, China

• Hong Kong

• Dubai, UAE

e. Employees

The company employs 325 people.

2. OSS/BSSBUSINESS

a. Customers

Major customers of the company include:

• Bakrie Telecom

• Bell Mobility

• Chunghwa Telecom

• Cingular Wireless

• Connex (Vodafone)

• Digicel

• E-Plus

• MTC Vodafone

• Mobilkom Austria

• O2 Germany

• O2 Ireland

• O2 UK

• Orange Group

• Rogers

• Safaricom

• SmarTone

• T-Mobile

• TSTT

• Telfort

• Vodafone

b. OSS/BSS Alliances

Significant partners of the company include:

• Cisco Systems

• NMS Communications

• Nortel

• Oracle

• PromonTecnologia

• SS8 Networks

• Starent

• Sun Microsystems

• TruePosition

3. FINANCIALS

NOTE: These numbers are estimates based on sources such as: public documents, conversations, company guidance, and Dittberner's OSS/BSS market experience.

Revenue Breakouts	Percent of Calendar Year 2005 Revenue	US Dollars (millions)	Euros (millions)
Corporate Revenue	100.0__	$ 35.6__	€ 27.8__
Telecom Industry Revenue	100.0__	$ 35.6__	€ 27.8__
OSS/BSS Revenue	100.0__	$ 35.6__	€ 27.8__

Business type	Percent of OSS/BSS Revenue	US Dollars (millions)	Euros (millions)
OEM software	__	__	__
Telecoms software	100.0__	$ 35.6__	€ 27.8__
Consulting/SI services	__	__	__
OSS/BSS Revenue	100.0__	$ 35.6__	€ 27.8__

Channels of Distribution	Percent of Telecoms Software Revenue	US Dollars (millions)	Euros (millions)
Direct	95.0__	$ 33.8__	€ 26.4__
Indirect	5.0__	$ 1.8__	€ 1.4__
Telecoms Software Revenue	100.0__	$ 35.6__	€ 27.8__

Service Provider Type	Percent of Telecoms Software Revenue	US Dollars (millions)	Euros (millions)
Circuit wireline	__	__	__
Broadband	10.0__	$ 3.6__	€ 2.8__
Wireless	90.0__	$ 32.0__	€ 25.0__
Cable/DBS	__	__	__
ISP	__	__	__
Non-facilities based SPs	__	__	__
Other SPs	__	__	__
Telecoms Software Revenue	100.0__	$ 35.6__	€ 27.8__

Size of Carrier	Percent of Telecom Software Revenue	US Dollars (millions)	Euros (millions)
Tier 1 (>$10 bill. revenue)	40.0__	$ 14.2__	€ 11.1__
Tier 2 ($250 mill. to $10 bill.)	40.0__	$ 14.2__	€ 11.1__
Tier 3 (<$250 mill. revenue)	20.0__	$ 7.1__	€ 5.6__
Telecom Software Revenue	100.0__	$ 35.5__	€ 27.8__

Geographic Region	Percent of Telecoms Software Revenue	US Dollars (millions)	Euros (millions)
North America	30.0__	$ 10.7__	€ 8.4__
EMEA	40.0__	$ 14.2__	€ 11.1__
Asia Pacific	15.0__	$ 5.3__	€ 4.1__
Latin America	15.0__	$ 5.3__	€ 4.1__
Telecoms Software Revenue	100.0__	$ 35.5__	€ 27.8__

Software Delivery Method	Percent of Telecoms Software Revenue	US Dollars (millions)	Euros (millions)
Software license	60.0__	$ 21.4__	€ 16.7__
Prof. services (software related)	40.0__	$ 14.2__	€ 11.1__
Service bureau/ASP	__	__	__
Telecoms Software Revenue	100.0__	$ 35.6__	€ 27.8__

OSS/BSS Functions	Percent of Telecoms Software Revenue	US Dollars (millions)	Euros (millions)
Billing, Charging & Mediation	100.0__	$ 35.6__	€ 27.8__
CRM, Call Center, eCommerce & Finance	__	__	__
Network/Service Assurance & Remote Test	__	__	__
Provisioning, Inventory & Planning Mgmt.	__	__	__
Fraud, Revenue Assurance & Credit Mgmt.	__	__	__
Analytics & Business Intelligence	__	__	__
Integration Middleware, BPM & SOA	__	__	__
Field Force Automation	__	__	__
Other OSS/BSS Function	__	__	__
Telecoms Software Revenue	100.0__	$ 35.6__	€ 27.8__

Revenue Management	Percent of Revenue Management Revenue	US Dollars (millions)	Euros (millions)
Billing, off-line/batch	15.0__	$ 5.3__	€ 4.1__
Interconnect billing	5.0__	$ 1.8__	€ 1.4__
Charging, on-line/realtime	70.0__	$ 24.9__	€ 19.5__
Mediation	10.0__	$ 3.6__	€ 2.8__
Revenue Management Revenue	100.0__	$ 35.6__	€ 27.8__

4. PRODUCTS

Revenue Management

Redknee Unified Rating & Charging System

Redknee’s Unified Rating and Charging System (URCS) rapidly deploys as an online charging system. The solution offers:

Ø Value-based pricing models with real-time balance management.

Ø Converged rating for fixed/mobile, voice/messaging/data, and prepaid/postpaid services.

Ø Support for hybrid rating scenarios that allow, for example, simultaneous support of prepaid rating for wireless service and postpaid rating for fixed or wireless access.

Ø IMS Readiness through support for 3GPP and Diameter interfaces for application and data bearer charging.

Redknee’s Turnkey Converged Billing Solution integrates multiple services for prepaid, postpaid, and hybrid subscribers—from the customer layer through to the service layer of the operator’s network.

For prepaid service, the URCS integrates with either the existing prepaid charging infrastructure or Redknee’s Account Balance Manager application.

For customer care management, Redknee’s turnkey system integrates with existing customer care solutions or Redknee’s CRM+ product.

Redknee's IP & Data Charging solution offers real-time rating of data services based on events, volume, quality of service, time of day, source, and destination. The solution is able to rate for UDP, TCP, WTP, WTLS, HTTP, RTP, MMS, Telnet, POP3, IMAP 4 and SMTP traffic.

Redknee’s Policy Decision Rules Server (PDRS) provides policy management capabilities aligned with 3GPP. The product performs real-time subscriber-based policy control and can dynamically determine the required network resource to use for a customer depending on the value of the customer or other rules.

MCommerce Gateway is Redknee’s mCommerce payment, purchase, partner management and advertising platform based on OSA / Parlay standards.

Redknee's Enhanced Messaging Gateway (EMG) controls and rates enhanced messaging services for prepaid and postpaid users. These services include premium SMS delivery, tele-voting, and gaming and content downloads. Additional capabilities include SMSC off-loading, store and forward, and content provider integration

The Subscriber Self-Care system allows consumer and business subscribers to manage their profile and access their account information. It thereby reduces calls to customer service representatives and creates further savings.

Redknee’s Unified Rating & Charging System

Source: Redknee, Inc.

5. DITTBERNER ANALYSIS

Redknee is one of the first to recognize that billers are no longer in the billing business anymore -- their business is generating revenue for customers.

Traditional billing and charging is no longer the differentiator it once was for billers. Dozens of companies sell solutions that generate a complex invoice or charge pre-paid subscribers in real-time.

Redknee offers that capability too, but it puts the emphasis on someone more, namely, the leveraging of billing information to drive direct marketing and merchandising offers for operators.

In fact, Redknee’s business model is not Amdocs, but Amazon. Redknee hopes to bring carriers the same context-driven and impulse selling opportunities that Amazon.com is famous for in the book trade.

Among the personalized selling and creative offers Redknee specializes in:

Ø Cross bundling to create multi-service packages such as mix and match services, devices, and networks.

Ø Favorites bundles, including ringtones, screensavers, alerts and promotions for favorite artists.

Ø Pricing hot items at a premium, and pricing deep catalog items at a discount.

Ø Multi-channel promotions for time-sensitive concerts, movies, and sports events.

Ø Promotional pricing for sponsored content, try before you buy, and impulse purchases.

Ø Loyalty or Bonus points to reward frequent users or P2P referrals.

Redknee is not just a company with a good idea, it’s also gaining traction at operators. For instance, it just implemented its URCS at Vodafone UK where the solution provides new IP charging capabilities. Among other things, the solution enables quota management for GPRS and UMTS mobile data and provides Vodafone UK with volume and time (duration) based rating for prepaid traffic, as well as support for the Diameter Credit Control Application (CCA) protocol.

We think Redknee’s Policy Decision Rules Server is a significant innovation, too, for it lets operators dynamically control the use of precious network resources so they can deliver QoS based on the value of the subscriber or other rules.

This will become especially important as telecoms roll out more high-bandwidth multimedia services, such as Mobile TV, VoIP, video conferencing and online gaming.

For example, a business videoconference should receive priority allocation of scarce resources over a teenage chat room. With PDRS, operators have full control over who is accessing their network, with what services, using what bandwidth, and at what price.

a. Strengths

Ø Generate More Revenue -- Redknee is one of the first billing vendors to drive the revenue generating side of billing. Its platform enables operators to offer personalized voice, messaging and content services in real-time and thereby maximize the impulse purchasing of content and other services.

Ø Value Based Billing & Network Optimization - Redknee is bringing the same sort of value-based pricing and bandwidth allocation control that nTels brought to SK Telecom in Korea, probably the best 3G operator in the world. Essentially, Redknee brings the same yield optimization techniques to telecoms that the airlines use to sell plane tickets.

b. Weaknesses

Ø Size & International Distribution - Amdocs, Comverse, and Intec are much larger organizations with a much greater worldwide reach than Redknee. To grow faster, Redknee needs to establish indirect sales and implementation channels.

c. Opportunities

Ø Market Innovators & Virtual Operators - Redknee’s value proposition is key to operators who need extra marketing/selling muscle to overcome an entrenched incumbent. As such, Redknee should keep pursuing operators, especially MVNOs, who need innovation to succeed.

d. Threats

Ø Comverse - The other billing player that’s pushing the direct marketing envelope is Comverse. Comverse’s advantage is it’s size and the fact that it combines a full-fledged postpaid provider and scalable charging capability.

Ø Other Billers - Redknee is clearly pioneering the leveraging of billing in wireless service merchandising and direct marketing, but other billers are catching on its techniques and will challenge Redknee for leadership.