Novatics Technology Targets Established Markets For Churn Reduction

BOSTON, MA - Advance Release - The Novatics Corporation, an emerging global leader in the development and proliferation of advanced air interface technology for the wireless telecommunications industry, today announced the formation of a strategic consultancy program to assist network providers in adopting new Novatics technology that can best stabilize revenue and reduce subscriber churn. Centered primarily around the much-anticipated Conduit3G technology group, this program will aim to not only introduce providers to next-generation development capabilities, but also explore the most effective ways in which these new capacities can be leveraged in a hyper-competitive market environment.

The past decade has seen explosive growth in both the number of wireless subscribers and the average quantity of minutes that each individual subscriber uses monthly. The wireless handset, once an expensive and unreliable status symbol, has now become a ubiquitous communications tool, relied upon by many as a primary source of voice / data connectivity. Across nearly all developed nations, double-digit annual growth rates since the early 1990's have created a global network population that is already approaching 2 billion subscribers.

Unfortunately, however, while wireless network usage has grown geometrically over the past decade, individual subscriber revenue has not. Despite a series of improvements in service quality and capability, both aggregate per-user revenues and per-minute usage margins have fallen precipitously over each of the past seven years. A once stable and high margin enterprise, the wireless service provider sector has become characterized by thin margins and high rates of churn since the mid-1990's expansion of network carriers in both U.S. and International marketplaces.

"Wireless providers began to behave in the mid-1990's very much like their long distance wireline counterparts of the previous decade," notes Novatics Chief Executive Officer John A. Dooley. "Just as de-regulation brought an avalanche of new competition to long-distance, the addition of PCS spectrum to the wireless industry opened up the field to a host of well-funded newcomers. Suddenly, individual marketplaces that had been stable duopolies became highly competitive environments, containing as many as seven independent carriers. Thus, we fast found ourselves with fertile ground for extremely aggressive price wars to begin before the bulk of new infrastructure had even been paid for."

Today, wireless network providers see new technologies nearing, which collectively hold the promise of stabilizing price decline and controlling churn. Third Generation (3G) enabled systems will give network subscribers a radically different mobile communications experience – one that integrates untethered freedom of mobility with the type of broad-band digital access that consumers have grown dependant upon in their homes and offices.

"Providing true next-generation functionality will be an ordeal, and therein exists the tremendous opportunity," continues Dooley. "Moving to fully integrated mobile service represents by far the most lofty challenge the industry has ever faced. It will be cumbersome and expensive. However, those who do it right will have the advantage. For the few who succeed, these enhanced services will provide significant new revenue streams as well as create clear market differentiation that will more than alleviate current concerns over margin and churn rates. The Novatics Conduit3G technology group was developed for providers intent on winning the competitive battles of tomorrow with full 3G capabilities that are considerably more cost effective."

About Conduit3G

Conduit3G is the name given to a ground-breaking technology group being developed by the Novatics Corporation for wireless network providers in markets around the globe. Based upon a host of radical new air-interface medium control innovations, Conduit3G will permit providers to significantly multiply their usable spectrum, while markedly improving overall network integrity.

About Novatics

Novatics is leading the way in development and integration of signal control technologies for next-generation wireless networks. As a singular pioneer of advanced medium management systems for 3G and 4G, Novatics is ensuring the fundamental viability of tomorrow's most ambitious mobile broadband applications. Those who would like additional information about Novatics can learn more by visiting the company’s website at www.novatics.com, or by sending specific inquiries to info@novatics.com.

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