Competition
The market for SS7 network access and related services is relatively new,
but intensely competitive. It is subject to rapid technological change, evolving
industry standards and regulatory developments. We expect competition to
increase in the future. We compete with a number of U.S. and international
companies that vary in size and in the scope and breadth of the products and
services they offer. Our competitors for SS7 network access and intelligent
network services include subsidiaries of AT&T, MCI Worldcom, Southern New
England Telephone, Sprint, GTE and regional Bell operating companies, as well as
other companies. Many of our competitors are small business units of very large
companies, that currently do not actively market their SS7 networks or services.
It is possible that new competitors or alliances among competitors could emerge
and rapidly acquire significant market share. As a result, those competitors may
be able to more quickly develop or adapt to new or emerging technologies and
changes in customer requirements, or devote greater resources to the
development, promotion and sale of their products. Increased competition is
likely to result in price reductions, reduced margins and loss of market share.
We currently compete with only one other company, National Exchange Carrier
Association -- Independent NECA Services, with respect to our clearinghouse
services. INET, Inc. is our main competitor for network usage software
applications.
We believe that our ability to compete successfully depends on numerous
factors, both within and outside our control, including:
- our responsiveness to telecommunications service providers' needs;
- our ability to support existing and new industry standards;
- the development of technical innovations;
- our ability to attract and retain qualified personnel;
- our response to regulatory changes; and
- the quality, reliability and security of our products and services.
We cannot assure you that we will be able to compete successfully against
current or future competitors or that competitive pressures that we face will
not materially adversely affect our business, financial condition and operating
results.
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