Since its formation Intec set out to build a leading market share position in certain products that fall within the specialised area of the telecoms software market generally known as Operations Support Systems (OSS). OSS are the fundamental building blocks of the information systems used by telecoms companies to provide services to customers and to generate revenues from network operations. Without OSS a modern telecoms company cannot function, and the quality of its systems helps determine the performance of the business. Research reports on the OSS market suggest that it has an overall size of approximately $30 billion annually.

Within this market Intec has focused on two related areas: interconnect billing and convergent mediation. Interconnect was the company’s original focus, and this was expanded to include mediation with the December 2000 purchase of Atlanta-based Computer Generation, Inc.. This followed a successful commercial partnership between the two companies. Other acquisitions and internal product developments have brought Intec additional products that support these core competencies.

Intec’s product development policy is to invest a substantial proportion of its revenues in developing additional functionality for existing software, developing next-generation products that will eventually supersede existing offerings, and expanding its product range into new areas. However, all developments are the subject of rigorous business case analysis, and justification at Board level, to ensure that they will effectively meet real market requirements and thus allow profitable sales to be made.

Products are created and managed by Intec’s Product Operations division, which works closely with other parts of the company, particularly sales and marketing groups, to ensure that Intec offers software that has the functionality and performance required by customers worldwide, when they need it. Intec also benefits from active and well-supported User Groups which contribute substantially to product development. As part of the ongoing process to ensure our products are properly understood by their target customers a full rebranding and re-positioning exercise was carried out in 2002, and a new website with greatly expanded product details created.

InterconnecT, the company’s original product, is the clear market share leader in the global market for interconnect billing systems, with around 150 customers, including Vodafone, Orange, France Telecom, Hutchison 3G, BellSouth and many others. InterconnecT allows these companies to produce high-value bills for carrying each other’s communications traffic. The sums involved can run into hundreds of million of dollars (or more) annually.

During 2002 we have continued to build InterconnecT’s market share, and to develop the capabilities of the product to meet customer requirements in the many countries and the wide range of networks where it is installed.

There are two variants of InterconnecT, for standard domestic and international interconnect bill settlement, and for international settlement according to the rules defined by the International Telecommunications Union (InterconnecT ITU). Both products have been the subject of substantial version upgrades in 2002. We believe both products are widely considered the benchmark for functionality and performance in the marketplace.

With the acquisition of business units from ICL and Ericsson, we also have customers running their former interconnect products, Prospero and Settler. Prospero has been discontinued as a development product but will continue to be supported. Settler will be developed and supported in line with its existing roadmap. Both products, and InterconnecT, will be superseded by the next generation platform now under development.

In 2001 Intec acquired a Dallas, Texas-based company, CHA Systems, which was successfully developing and marketing a carrier access billing product for the domestic US marketplace. This is effectively the local US equivalent of domestic interconnect billing in other regions. This product, since rebranded as InterconnecT CABS CG is now winning many more customers in the US, for both carrier-operated systems and an Intec-delivered bureau service. Current customer numbers stand at over 100. In mid-2002 this product was upgraded in performance, functionality and standards-compliance to meet the needs of the largest CLECs, ILECs and even RBOCs in the US. To recognise this, we added CG (Carrier Grade) to its name. Development continues on InterconnecT CABS CG to ensure that it continues to be the most effective product in the fast-changing and very competitive world of US telecommunications.

Inter-mediatE provides the vital services of network usage data collection, processing and distribution – together know as mediation. When an event occurs on a communications network, such as a telephone call, an Internet connection, or the delivery of a service or transaction, information on that event needs to be accurately identified, processed, and forwarded to other systems, including billing, so that it can be charged to a customer. Mediation thus lies at the heart of revenue generation for a carrier, and also strongly impacts functions such as network management, service provision, and customer care.

Inter-mediatE is a convergent mediation system, which is to say that it can manage many different types of network event: conventional switched calls, unswitched (packet-based) traffic like Internet Protocol (IP) data, mobile communications, and next-generation systems like UMTS (3G). It is also designed to handle the very highest volumes of traffic found in major carriers today – over 100 customers use Inter-mediatE, including Bell South, Verizon, SBC, Telstra and Hutchison 3G.

In 2002 Inter-mediatE reached Version 4 status, a major release that added many new capabilities intended to address the needs of all operators but particularly carriers looking to the next generation of complex, high-value services. This will include things like picture message, multi-media content, and location-based services. In addition, Inter-mediatE has been enhanced this year with new capabilities in the key area of information reporting, to allow customers to build a detailed view of what is happening in their networks. Initial customer feedback on this capability is very good.

Other products
Our core products of InterconnecT and IntermediatE are supported by a number of ancillary products that are usually but not necessarily sold in conjunction with them. Perhaps the most significant development in 2002 was the first release of a new product, Inter-activatE, which offers activation and service provisioning capabilities. Inter-activatE is designed to lower service activation costs by offering a single-platform environment for multiple service activation, high levels of automation, and comprehensive auditing and fallout management capabilities. Inter-activatE has already won its first customers, and feedback from those sites is helping define future product direction.

Intec has also begun marketing two new products, Maxi-routE and Maxi-solvE. These products assist operatiors in determining Least Cost Routing options and in automating the reconciliation of interconnect invoices. Both products help carriers improve revenues and cut operating costs, and we expect good demand for both.

During the year Intec also reviewed the position and future contribution of a number of minor products, primarily in the revenue assurance fraud management area, that were acquired with companies bought in 2001. Although Intec remains in the revenue assurance market with other capabilities, the fraud product has been discontinued as an actively developed and marketed item.

ROADMAP
The telecommunications market is very dynamic, and many new services are being currently offered to consumers. Intec’s development policy is to have available products that meet actual customer demand when it materialises. Therefore, we maintain a detailed product roadmap for both existing products, and, more importantly, for next-generation platforms, that will deliver the performance and functionality that we anticipate will be required. This roadmap extends to approximately five years from the present time, and covers such issues as new platform definition, development, introduction and marketing, current system wind-down and retirement, and customer migration between old and new versions. The roadmap process is intended to ensure high levels of customer loyalty and retention through continuity of quality products and service, maximum return on Intec’s development investment, and continual improvement in operating performance and market responsiveness.

The current roadmap for our core InterconnecT and Inter-mediatE products defines a full, but staged, introduction of next-generation platforms over a time span of the next twenty four months. Development projects to ensure this are now well advanced. These next-generation platforms will offer higher functionality, improved performance, and lower operating costs to existing and new customers.

For more information on Intec products and services, please visit www.intec-telecom-systems.com