Equant N.V.

31 20 606 9100

Heathrowstraat 10
1043 CH Amsterdam, The Netherlands

www.equant.com

Sales

$2.9 billion

Business Description 

We provide global, integrated and customized communications infrastructure solutions, comprised of data and Internet Protocol (“IP”) network products and value-added services as well as network integration services. Our target customers are MNCs and international institutions such as Ernst & Young, Hanjin Shipping, Japan Tobacco International, Le Meridien Hotels, Ministry of Foreign Affairs – Netherlands and Zurich Financial Services. Using our portfolio of value-added services and the seamless geographic reach of the Network, our customers can access their own company’s information and applications, as well as applications available from the Internet, anywhere in the world through direct connections or “dial-up” from portable computers or other network access interfaces. Our product portfolio includes:

• managed data and IP network services;
• network design and integration services; and
• Value-added services such as consulting, project management, messaging, hosting and security services.

Products and Services

We offer network, integration and other services. Our data and IP network products include Frame Relay, LAN Access, ATM, IPVPN, Internet Direct and traditional MDNS (X25/X28). Integration services include remote server management, messaging, hosting, security, fulfillment or equipment sale, deployment, maintenance and consulting services. Other services includes convergence solutions and circuit-switched voice services. The following tables show revenues from the provision of network services, integration services and other services.
 

Network Services

We provide a full range of MDNS, using established industry protocols. MDNS is the generic name given to wide area network data transport services managed by a supplier with a higher degree of functionality, security, reliability and cost effectiveness than data transport services traditionally provided by public telecommunications organizations through leased lines. For any customer, the availability of a particular access method, transmission speed or service is dependent upon a combination of factors, including:

• the local telecommunications infrastructure;
• regulatory considerations in the relevant jurisdiction; and
• the nature of the customer premises equipment.

We provide both direct access (i.e., fixed and continuous connections between different customer sites) and remote access (i.e., connections initiated and terminated by a remote user) via the dial telephone network as well as the Internet including using DSL connections.
 
IP Services.

Equant IP VPN. Equant IP VPN provides a private and secure connections an MPLS-based architecture. The key features are:
• IP VPN “Plug” — We provide an IP Plug, which delivers all IP services to the customer through a simple any-to-any connection.
• Fully secured VPN — The MPLS technology affords the customer a unique and fully secured closed user group, as secure as in a frame relay or leased line network.
• Variety of access methods including native IP, leased line, Frame Relay, ATM, dial access, dedicated satellite access, Internet access (bundled with IPSec) and DSL.
• Class of service (CoS) management (application awareness) allows prioritization of customer applications between multimedia and data traffic with four levels of priority.

We intend to use our MPLS infrastructure to continue to deliver virtual private networking with ‘differentiated class of service’ backed by strong service level agreements, and allowing the path to convergence of voice, data, and video. In 2004, we will continue to enhance IP VPN access methods, and introduce satellite access, Wi-fi access for roamers and Optical Ethernet access for high speeds.

In 2004, we will continue to meet low end site requirements worldwide by leveraging retail DSL offers from local internet service providers to complement our existing DSL access coverage and increase availability to over 60 countries. In 2003, we launched our DSL access service to IP VPN in 13 countries. We also plan to launch in 2004, Customer Managed IP VPN services, and IP VPN Services customized for indirect channel partners; and continue to strengthen our reporting capabilities and continuity services for IP VPN.

Equant Internet Direct and Internet VPN. Equant Internet Direct is designed for customers who use the Internet as a strategic resource and require a high level of Internet reliability and services on a worldwide basis. In 2003, we launched Network Based Internet Gateways. In 2004, we will introduce an internet service provider resale solution, which is a one stop management capability for customers. We will also enhance our Equant Internet VPN services with VPN bridge capability for IP VPN or frame relay.

Frame Relay Service. Frame Relay is particularly suited to customers who want to manage their internal networks by acquiring dedicated, but virtual paths between their locations, and as such, is a cost-effective means of connecting geographically dispersed office LANs such as those for a multi-site business. We offer Frame Relay services in a large number of city locations and countries, including all major business centers in North America, Europe and the Pacific Rim, with access speeds of up to 45Mbps. Despite the growth of IP VPN services, Frame Relay continues to be a key WAN service throughout much of the world, especially for mission-critical applications in the developing regions of the world.

LAN Access Service. This network offering is based on our robust Frame Relay network service but also includes Equant managing routers, switches and other Customer Premises Equipment (CPE). Customers increasingly prefer this managed CPE option to manage a portfolio of Cisco routers or Nortel switches on the customers’ premises, as they better understand how to improve performance and better reduce their total cost of ownership. Selecting a managed CPE option avoids the need for customers to invest in maintaining and upgrading their own hardware.

ATM Service. Our ATM service, which has been on the market since 1999, provides customers with transport speeds of up to 155 Mbps, which is suitable for transmitting high volume data applications, as well as integrated voice and video. Customers who have high-speed mission critical networking requirements select our ATM service, and use this service to provide full multimedia integration. In 2003, we grew the number of connections and revenues for this service.

ATM/Frame Relay/LAN Access Product Developments. We continually enhance our portfolio of WAN services. In 2003, we continued to integrate our back office operations to improve productivity in the delivery and maintenance of our services. In addition, minor feature developments were put in to maintain our Frame Relay / LAN Access/ATM competitive profile including new access methodologies using DSL, Internet and satellite technology.

Traditional MDNS (X25/X28). We offer direct access services, providing LAN-to-LAN connectivity, employing the X.25 protocol. These services provide flexible, cost-effective connections in a wide number of locations. Although customers in the United States, Western Europe and Japan are migrating to more rapid, higher capacity services, X.25 and SNA/SDLC usage continues to be used in emerging markets in Eastern Europe, Asia and Africa. Equant’s traditional MDNS provides the quality required for most modern data-communications transport protocols. X.28 is a dial access (through the telephone network) arrangement of the X.25 Managed Service.

Service Management Tools. We have consolidated our range of service management tools into one single tool called Equant WebVision. This real-time tool permits our customers both to monitor performance of the services we provide and observe our progress in resolving problems. Equant WebVision is a real time monitoring tool that provides customers with information on traffic, connections, and configurations and is a PC based on-line browser tool. Equant WebVision also allows customers to view “trouble tickets,” or reports of problems or errors. WebVision includes a suite of services that are offered over the portfolio of IP and Data services, under the name of Customer Select Program. With the addition of Equant Application Visualizer, launched at the end of 2002, we provide access to information on the customers’ application usage across their LAN and WAN. We plan to launch a fully managed version of Equant WebVision for the Asia Pacific region in 2004.

Integration Services

Our integration services consist of the deployment, monitoring and maintenance of customers’ equipment as well as consultancy and professional services to support our customers beyond their networking requirements. With engineers and consultants, linked by three of our five global support centers, our integration services allow us to manage the customers’ network remotely, including application performance, monitoring and diagnostics. The integration services portfolio currently consists of the following services:

Deployment Services. Implementing international projects using internal resources can place a heavy burden on a customer’s internal team. We focus on three types of projects: LAN Deployment, Cisco Router Deployment and Nortel Integration Services. Deployment includes resale of network equipment and staging and installation of LAN and WAN infrastructure worldwide and general equipment supply.

Maintenance Services. We provide local support with global coordination of support professionals in more than 80 countries and 200 service locations. By leveraging our service partnerships such as that with SITA, we are able to extend service to over 200 countries. Our Global Customer Support Centers manage any reported incidents, supported by Atlas, our global service management system.

Enterprise Remote Management. We provide remote management capabilities to address customers’ SNMP-based devices. Enterprise Network Management provides an out-tasked solution for customers seeking 24-hour proactive fault management of their network equipment and servers.

Consulting and Professional Services. We provide both consultancy and project management to take responsibility for every aspect of the deployment of a customer’s solution. We have consultants who specialize in Security, Messaging and IP Telephony consulting who assess the customer’s current and future requirements to decide on the best solution for that particular customer. Project Management services grew steadily in 2003. In 2004, we are establishing both project management and consultancy services as global business practices across the company to drive and grow our services business.

Managed Services

Managed services include a set of solutions related to the management of IT infrastructure supporting various applications such as:

Messaging Applications. We provide managed Exchange, managed Lotus Notes and managed Sun ONE messaging services including consulting, design, infrastructure optimization, deployment, migration, operation and maintenance services. We manage 800,000 mail users.

Web Applications. We provide managed services for the infrastructure supporting major web and thin client technologies. This includes consulting, design, server consolidation, deployment, application integration and migration, operation and maintenance of Windows, Unix and Linux platforms.

Security Applications. We provide managed services for security infrastructure as firewalls, antivirus, authentication, filtering and intrusion detection. This includes consulting, design, deployment, migration, operation and maintenance on major security related technologies.

In 2004, we will introduce additional products based on the existing managed services portfolio. We will enhance our services with specific consulting methodologies adapted to a specific customer business need and enhance solutions to address customer requirements for business continuity

Other Services

Convergence Solutions. Our convergence solutions are as follows:

Equant Voice VPN: Equant Voice VPN relies on a switched voice network, managed by France Telecom, that uses a virtual private network technology to provide our customers with the functionality of a dedicated private network combined with the flexibility, resiliency and cost effectiveness of a shared global network. The services formerly known as Integrated Voice and Data (iVAD) have been re-packaged as Equant Voice for IP VPN, Equant Video for IP VPN and Equant Call Center for IP VPN. These comprise an enhanced alternative to traditional switched voice services.

Equant Contact Center: Our Contact Center is a single point of contact for fault management and reporting for all of our services. In 2003, we added Equant Contact Center for IP VPN, which provides public access numbers in 40 countries and directs in-country calls to domestic or international contact centers through our Network.

Unified Enterprise Telephony. In 2002, we launched our IP Telephony portfolio of services designed to provide customers with an end-to-end voice and data solution in a limited number of countries in Europe and North America. IP Telephony involves the real-time transmission of voice traffic over the LAN through an IP PBX over Equant’s Voice for IP VPN service. In 2003, we saw modest growth on IP Telephony and Voice over IP VPN. In 2004, we plan to extend this service to additional regions.

Product developments: We will continue to enhance our convergence services with more detailed reporting, improved service management and SLAs and small office solutions with DSL. We also plan to introduce new services based on switchless resale of domestic voice services in selected countries in 2004.

Mobility Services. In 2002, we introduced remote access and mobile access services, such as DSL and mobile access services. A Mobility Services product line was introduced in 2003 using existing services such as IP Dial, GSM Dial and GPRS services (available only in selected countries in 2003), as well as Access Companion.

Product developments: In 2004, we will expand our GPRS coverage, introduce public Wireless LAN services and develop mobilized applications, like messaging. We expect to grow our mobility services revenues in 2004.

Communications Infrastructure Outsourcing Services: As opportunities arise, we intend to pursue outsourcing opportunities with existing as well as new customers using our broad portfolio of data and IP network products and communications services. Outsourcing involves a long-term relationship where a company allows an external company to manage all or part of its communications needs. Companies usually engage in outsourcing to obtain higher levels of efficiency and user support at reduced operating and management costs through economies of scale and scope. The service may include parts or all of data, voice, wireless and hosting services as well as transfer of assets, contracts and people, and networked application management.