CommTech Announces `Pay As You Grow,' Metered OSS via FastFlow ASP Offering.

Business Editors/High-Tech Writers

TeleStrategies OSS 2000 Show

ORLANDO, Fla.--(BUSINESS WIRE)--Feb. 1, 2000

CommTech Corporation, a top provider of zero-touch, end-to-end flow-through provisioning and eBusiness solutions for communications service providers (CSPs), announced its FastFlow(R) ASP offering, whereby CommTech serves as an application service provider (ASP) that offers integrated, hosted software applications to providers of voice, DSL, and cable services.

FastFlow ASP helps emerging CSPs quickly enter markets with far less upfront cost and time than possible via traditional OSS development. Its innovative &uot;pay as you grow&uot; pricing models create a metered OSS structure that directly ties CommTech's compensation to the success of the CSP in selling new services using the ASP-delivered OSS. This allows the CSP to pay less when its end users are buying fewer services -- when it has less revenue -- and to pay more when it is earning more revenue.

Customers can use pre-integrated OSS applications provided by CommTech and its ASP vendor partners through a remotely-hosted Webserver facilitated by CommTech. CommTech's FastFlow(R) Order Fulfillment and Service Activation suites supply the OSS infrastructure to help CSPs quickly and cost-effectively deliver a broad range of telecom services to enterprise business customers; the CSPs gain the same functional benefits as a deployed/installed OSS without needing to hire specialized IS/IT personnel to supervise day-to-day operations, and can focus on their core businesses.

The FastFlow(R) eSuite product enables CSPs to offer an eBusiness portal on the Web to applications that are in great demand by their customers, building on CommTech's broad expertise in partitioning databases and security for end-user control.

Market Opportunity

Investment research firm Gerard Klauer Mattison (GKM) has projected the total market opportunity for ASPs at approximately $4.5 billion in pure ASP revenue, total $22 billion including associated integration revenue, by 2003. GKM estimated that migrating from a traditional fat-client desktop to a thin-client ASP can reduce fully-loaded expenses per desktop by 50-60%. Forrester Research estimated ASPs can save clients one-third or more of the cost and time to install software. International Data Corporation (IDC) estimated the ASP market will experience a 90% cumulative average growth rate (CAGR) through 2003.

First Mover Backing Buzzwords with Business Reality

CommTech is one of the first vendors in the OSS and eBusiness arenas -- indeed, the first in the flow-through provisioning sector -- to announce its OSS offer on an ASP basis. More importantly, CommTech is backing market messaging with business reality. In support of FastFlow ASP, CommTech already has in place one of the largest independent data center/ASP companies to provide the underlying hosting infrastructure; `marquee names' among customer care &billing (CCB) vendors to provide the CCB portions of FastFlow ASP; and its first client of the new offering, which signed with CommTech in early January 2000.

Phase one includes CommTech's zero-touch, end-to-end flow-through provisioning and eBusiness products plus integrated CCB. Phases two and three will enhance FastFlow ASP with partner solutions from other world-class ISVs for OSS interconnection; performance and SLA management; fault management; and support for a wider array of communications services.

Pricing Flexibility For New Entrants and New Units of Existing CSPs

With the advent of its ASP offering, CommTech offers new entrants or new divisions of established CSPs multiple affordability options:

--   Pure ASP: customer rents CommTech software, CommTech hosts it,
     and customer pays on a per-subscriber-service basis.
--   ASP/Rent &Third-party Host: customer rents CommTech software but
     has a third party host it.
--   ASP/Buy &Host: customer purchases CommTech software but has
     CommTech host it.
--   RTU: customer purchases the license for CommTech software and
     hosts the software itself.

Time to Market

With FastFlow ASP, CSPs don't get bogged down in OSS deployments but can log in on CommTech's FastFlow(R) ASP website and start using its standard &uot;plain vanilla&uot; business processes already market-tested at more than 50 CSPs and vendor partners.

Legitimately New Architecture

The technology for an OSS ASP did not exist just a few short years ago. CommTech can offer it because all its systems are built on a three-tiered, Web-enabled, CORBA-based, thin-client architecture; most other OSS vendor architectures are not.

BPE Handles Customization and Multi-OSS Integration

FastFlow provides for efficient integration and business process automation via its sophisticated business process editor (BPE) as well as Java, CORBA, and Open Database Connectivity (ODBC). Where user interface or business process customization is needed, or to integrate other OSSs, customers may undertake customization themselves, contract CommTech's professional services, or contract a third party, and the BPE simplifies and expedites integration/customization.

Not a Service Bureau

--   In a service bureau model, customers have to buy the software and
     the hardware; the foundation of FastFlow ASP is to help CSPs
     avoid upfront infrastructure investment, staffing, and logistics.
--   Service bureau agreements are outsourcing, &uot;hands-off&uot; contracts.
     FastFlow ASP is very much a hands-on, interactive affair that
     puts OSS and cost control firmly in the end user's hands...all
     made possible by a three-tiered, Web-enabled, thin-client
     architecture.

FastFlow(R) Suites Help CSPs Enter Markets and Compete Effectively

CommTech FastFlow(R) suites currently manage more than five million lines throughout North America and Europe. CommTech's FastFlow(R) Order Fulfillment Suite automates via a single interface the processes key to effective delivery of communications services, including management of workflow, ordering, product/service catalog, workforce, inventory, and trouble ticketing systems. CommTech's FastFlow(R) Service Activation Suite lets CSPs provision and activate services across voice, data, and cable telephony platforms. CommTech's FastFlow(R) eSuite product enables CSPs to offer an eBusiness Web portal to applications that are in great demand by their customers, building on CommTech's broad expertise in partitioning databases and security for end-user control.

More about CommTech Corporation:

CommTech's products enable rapid, convenient, cost-effective delivery of communications services. Its expertise in telecommunications, data communications, and software technology seamlessly integrates even the most complex systems and processes to deliver revenue-generating eBusiness solutions. CommTech customers and partners include more than 50 ILECs, CLEC/DLECs, network equipment manufacturers, other telecom and OSS vendors, cable CSPs, systems integrators, and international operators.

CommTech is a member of and active participant in the TeleManagement Forum (TMF), the ADSL Forum, and the Association for Local Telecommunications Services (ALTS). Headquartered in Cranbury, NJ, US, CommTech has R& offices in Cranbury and Brick, NJ; Toronto, Canada; and Westerville, Ohio, with regional offices throughout the U.S. and international offices in Gloucestershire, U.K., and Hoofddorp, The Netherlands. CommTech(R), the CommTech logo, and FastFlow(R) are trademarks of CommTech Corporation; other trademarks are property of their respective owners. Please visit http://www.comm.com or call 1-888-COMMTECH.