SOURCE: TeleCommunications Systems, Inc.

October 19, 2005 10:05 ET

Patent Issued to TCS for Prepaid Call Management Technology

ANNAPOLIS, MD -- (MARKET WIRE) -- October 19, 2005 -- TeleCommunication Systems, Inc. (TCS) (NASDAQ: TSYS), a global leader in mission-critical wireless communications, today announced that the U.S. Patent and Trademark Office has issued patent number USP 6,952,575 titled "Prepaid Call Management in Intelligent Network." TCS has a total of 6 patents involving prepaid wireless. TCS now holds 39 patents and has approximately 90 additional patent applications pending in the United States and jurisdictions throughout the world.

The impetus for this patent was the need for an architecture that allows cost-effective implementation of new services using existing network elements and messaging protocols. Specifically, the patent covers a prepaid call management solution whereby the network recognizes whether the call is of a certain service type, such as a prepaid or postpaid call. For prepaid calls, the patent provides for the management of the call using a Service Control Point that has a user profile database, including information such as the user's account balance. A Service Transfer Point associates the call's origination and destination points and exchanges a message between the Service Control Point and a Service Switching Point through Signaling System 7 (SS7) to either establish a communications link between the originator and the destination, if the user has a sufficient account balance, or deny the call, if the account balance is insufficient.

The North American prepaid industry has been growing rapidly, according to Frost and Sullivan, rising from 12 million subscribers in 2002, to 29 million subscribers by the end of 2005, and is expected to increase to over 45 million subscribers by 2009. Much of this growth is due to Mobile Virtual Network Operators (MVNOs), such as Virgin Mobile, using prepaid service as the primary billing mechanism for their customers. The prepaid wireless industry has also been rocked by a recent $128 million prepaid patent litigation verdict against a major prepaid wireless service vendor, suggesting the potential value of patented prepaid technology.

Maurice B. Tosé, Chairman, President and CEO of TeleCommunication Systems, stated, "This patent envisions the use of SS7 network protocols to establish new services such as prepaid in a wireless carrier's network without the need for new equipment. TCS has long been a leader in the implementation and use of Intelligent Networking for wireless carriers. This latest patent is another example our company's capacity for technology innovation."

ABOUT TELECOMMUNICATION SYSTEMS, INC.

TeleCommunication Systems, Inc. is a leading provider of mission-critical wireless communications to carriers, enterprise and government customers. TCS' wireless data offerings range from providing location-based Enhanced 9-1-1 services in the U.S. and messaging infrastructure to wireless operators, real-time market data and alerts to financial institutions, mobile asset management and mobile office solutions for enterprises, and encrypted satellite communications to government customers. For more information visit: www.telecomsys.com

This announcement contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. These statements are based upon TCS' current expectations and assumptions that are subject to a number of risks and uncertainties that would cause actual results to differ materially from those anticipated.

The actual results realized by the Company could differ materially from the statements made herein, depending in particular upon the risks and uncertainties described in the Company's filings with the Securities and Exchange Commission (SEC). These include the risks and uncertainties relating to the company's future financial results and ability of the Company to (i) reach and sustain profitability as early as anticipated, (ii) continue to rely on third parties to market and sell the Company's products and for other relevant support, (iii) adapt and integrate new technologies into its products, (iv) expand its business offerings in the new wireless data industry, (v) capitalize on opportunities in the marketplace, (vi) develop software without any errors or defects, (vii) implement its sales and marketing strategies, and (viii) deploy its software and services quickly.

Existing and prospective investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to update or revise the information in this press release, whether as a result of new information, future events or circumstances, or otherwise.

Contact Information

  • Corporate Contact:
    Rita Thompson
    TeleCommunication Systems
    410-295-1865
    Email Contact

    Media Contact:
    Brooke Greenwald
    Cornerstone Communications, LTD
    301-947-5144
    Email Contact