August 25, 2008

Telcos, Cable Providers Engaging Billion Dollar Bandwidth Boondoggle While Ignoring the Most Serious Network Bottleneck

Major telecommunications companies are unnecessarily spending tens of billions of dollars and taking years to upgrade their networks to support the next generation of wideband services when a more useful and affordable solution that can be deployed immediately and runs on existing networks is currently available, according to NetEx(R), the leader in high-speed data transport over TCP.

NetEx HyperPipe(TM) bandwidth optimization software enables phone companies, cable providers and other service providers to achieve up to a 10x speed increase over their existing broadband infrastructure while significantly deferring the costs, time delays and technical limitations of billion dollar network upgrades. HyperPipe is the only solution that resolves the inherent problem of the inefficiency of Transmission Control Protocol (TCP) data transports between the service provider and the customer location. TCP was designed for Local Area Network data transport, not the Wide Area Networks used by service providers, and can consume from 60 to 80 percent of the available bandwidth because of the overhead built into the protocol. In WAN environments TCP can suffer from variable line quality issues, such as jitter, latency and bit errors, that require packets to be re-sent and seriously degrade data transmission rates and throughput.

HyperPipe eliminates these issues with an innovative software design developed specifically to accelerate traffic over an IP network. The software intercepts TCP packets, which are then aggregated and sent over the network in a manner that is optimized for achieving greater throughput. The advanced algorithms within HyperPipe eliminate the problems that constrain the speed of typical IP networks by protecting data packets from variations in line quality. HyperPipe then compresses the data before sending it across the IP network. The net result is up to a 10x speed boost for traffic over the existing network with no hardware upgrades required.

"Phone and cable companies have launched multi-billion dollar bandwidth competitive network upgrades but unless they also address the fundamental limitations of TCP, the new wideband networks will have the same bandwidth constriction issues as current broadband technology," said Robert MacIntyre, Vice President of Business Development and Marketing at NetEx. "HyperPipe gives these providers an unmatched tool to deliver wideband-class service on a broadband network with a huge time-to-market advantage. There is simply no financial, competitive or technical reason for service providers to spend the time and money on wideband network upgrades when they can receive the same benefits today using HyperPipe on an existing broadband backbone."

HyperPipe has the potential to re-shape the emerging wideband market, combining the service provider benefits of saving billions of dollars by deferring the need for massive infrastructure upgrades, creating new revenue opportunities by delivering wideband "X-on-demand" services and providing unequaled speed and simplicity of deployment. Deploying HyperPipe to enable wideband network capabilities simply requires the software to be installed at both ends of the routed network. The software can be easily deployed at a phone or Cable Company's central office and on the customer's cable box or PC, creating an instant massive speed improvement and requiring no investment in upgrading the network. Delivering HyperPipe to the customer is as simple as pre-loading a cable box with the software or automatically sending the software as a download the first time the customer connects to the network.

HyperPipe bandwidth optimization software is currently available directly from NetEx and the company is scheduling trials for Digital Service Providers upon request.

About NetEx

Formed in 1999 as a spin-off of Storage Technology Corporation (StorageTek(R)), privately-held NetEx has provided the world's fastest data transport in the industry, along with guaranteed data delivery, for over 25 years to hundreds of the world's largest and most sophisticated organizations, including some of the most prestigious providers of financial, transportation and telecommunications services and government entities. Customers include BP, Telstra, NTT, Verizon, BellSouth, Qwest, Royal Bank of Scotland Group, LloydsTSB, NDC Health, IRS, American, Lufthansa, Northwest, United Airlines and Kellogg. The company has recently retained The Lauffin Group to enhance their market reach and position. For more information about NetEx, NetEx/IP or HyperIP, visit or call +1 763-694-4300.

NetEx is a registered trademark; NetEx/IP and HyperPipe are trademarks of NetEx. All other trademarks herein are the property of their respective owners.