XACCT Technologies has announced the launching of a new technology, PacketSight. PacketSight can identify the characteristics of surfers and IP protocol users, providing communications providers with the tools to analyze these users' behaviors. This analysis facilitates the process of billing for e-mail, games, chat, cellular Internet, etc. XACCT develops data collection and processing technology for communications networks.
Colt Telecom Group (Nasdaq: COLT; LSE: CTM) is the first company to buy XACCT Technology's PacketSight system. The deal expands Colt's relations with XACCT. Colt will use the new technology to enhance its IP services in Europe. The technology will enable Colt to benefit from the full transparency of its networks, carry out market analyses, and offer service packages to customers based on their personal preferences.
The technology's achievement lies in its ability to simultaneously use 750 protocols, while XACCT's rivals' technologies can utilize only 10. XACCT's technology allows information packets being transmitted through the network to be analyzed, enabling the identification of the subscribers' protocol and specific applications. Identification of the preferred applications can increase the communications provider's profits. They can now offer their customers service packages suited to their needs. The new system allows cellular telephony providers to adapt the hook-ups at their subscribers' homes to their customers' individual characteristics.
The new system is an integral part of XACCT's platform, adding new capabilities.
What added capabilities does the new technology offer your system?
XACCT Technologies VP Development Ronen Rosenblatt: "Until now, our systems could gather data from the network's components (routers, servers, etc.). The important innovation is the ability to collect information from the traffic, whose elements aren't saved by the network. As a result, the communications provider can identify the type of application the subscriber is using, know the speed at which the information is moving between points, and receive an indication about the quality of service the customer is getting, thereby confirming that the service is being delivered as promised, and price it accordingly."
"This identification will allow the communications provider to provide new services like games to subscribers, and price them in accordance with the subscribers' type of use. For example, if a subscriber is interested in buying 50 bullets for a target practice game, each of which costs two cents, the new system allows the communications provider to charge him for the bullets he actually uses. The service provider can also learn how many subscribers use each type of service offered, from what part of the world the subscribers enter the portal, etc."
"The system also enables service providers to plan their communications capacity. This will allow companies to buy higher than normal capacity at particular times, guarantee the line for these periods, and price the service accordingly. A major customer already bought the system for this purpose. In principle, the new technology allows faster packet transmission, while sifting out only the relevant information for billing purposes for each type of use."
Who is your target audience?
"The new technology expands the capabilities of existing systems. The target audience is firstly existing customers. We also expect it will bring in new customers. At the moment, we're seeing considerable interest by our existing customers, and we expect to sign several deals shortly."
What is the sales potential of the new system?
"XACCT will be paid according to the number of components the customer buys. Purchases of the new system means that customers are buying additional components, which translates into higher revenue. We estimate our sales potential to new and existing customers at several million dollars this year."
What new markets are now open to you?
"The new markets are mainly in the cable television sector. The new technology allows the provider to listen in on network traffic, allowing the identification of data on each cable. Using the information XACCT's system provides, the cable companies can bill customers according to the types of movies they watch. After all, there are both cheap and expensive movies. The cable company is informed about the quality of movies the customers watch and bill them accordingly. For example, a customer can receive a discount for lower than normal quality, or pay an extra fee for high-quality material."
"Another market is broadband services, which can better plan capacity utilization."
XACCT is targeting the new service to broadband service providers, cellular Internet providers, cable television companies, DSL providers, and others. The communications providers will use the platform for a range of applications, including billing, business analysis, consumer behavior analysis, and efficiency and quality service analyses based on pre-paid use and services, including cellular environments.
Published by Israel's Business Arena on 19 June 2001