VeriSign Sells CALEA-Ware to Arrival, Cellular Mobile Systems, and First Cellular

R. A. Hettinga rah at
Wed Oct 2 09:27:16 EDT 2002

Story Url:

VeriSign Signs Arrival, Cellular Mobile Systems, and First Cellular For
NetDiscovery Services
2 Oct 2002, 08:01am ET
- - - - -


     VeriSign Signs Arrival, Cellular Mobile Systems, and First Cellular
                          For NetDiscovery Services

Trusted Nationwide Infrastructure Supports Turnkey Solution Enabling All Types
             Of Carriers to Comply with CALEA Easily at Low Cost

    MOUNTAIN VIEW, Calif., Oct. 2 /PRNewswire-FirstCall/ --
VeriSign, Inc. (NASDAQ:VRSN), the leading provider of digital trust services,
announced today that three new contracts have been executed for their
NetDiscovery(TM) Services, the most complete outsourced solution available for
compliance with the Communications Assistance for Law Enforcement Act (CALEA).
Arrival Communications, a competitive local exchange carrier (CLEC) that
provides voice and data services to underserved cities throughout California,
and regional wireless carriers Cellular Mobile Systems of St. Cloud and First
Cellular of Southern Illinois, have deployed VeriSign's NetDiscovery Services
as a cost-efficient means of meeting their obligations under CALEA, the
congressional mandate requiring carriers to support law enforcement agencies
in conducting lawfully authorized intercepts of communications content and
call data.
    VeriSign's trusted network infrastructure, secure data centers and
security bureau personnel uniquely position the company to serve the CALEA,
subpoena, and judicial order compliance needs of all types of
telecommunications carriers and information service providers as well as law
enforcement agencies.
    "VeriSign NetDiscovery Services offer us a streamlined, affordable
solution for provisioning, access, and delivery of call information to law
enforcement agencies (LEAs)," said Tony DiStefano, CEO of Arrival
    "CALEA compliance can be simply cost-prohibitive for smaller wireless
carriers because we are required to maintain the same level of capabilities as
our much larger competitors but we have far fewer subscribers to spread the
cost over," said Terry Addington, the President and CEO of First Cellular of
Southern Illinois. "In our 10 years of service we never had an intercept
request. To spend hundreds of thousands of dollars for a solution at our size
just didn't make sense. For us, the VeriSign NetDiscovery service bureau is
the perfect solution to meeting our preparedness obligation."
    In addition to the potentially high cost of network upgrades, non-
compliant carriers could face a fine of $10,000 per day for each intercept
request from law enforcement agencies.
    "VeriSign's NetDiscovery is a valuable solution to help carriers comply
with CALEA, in particular relieving us of the administrative headaches
involved with administering the legal orders, so we can focus on other,
revenue generating services," said Sandy Bromenschenkel of Cellular Mobile
    "VeriSign's nationwide network infrastructure, digital certificate/PKI
technology and secure data centers enable us to provide a service bureau
solution that saves carriers the burden of significant capital and operating
expenses," said Raj Puri, VP - NetDiscovery Services for VeriSign
Telecommunication Services. "In addition, VeriSign's trusted solution advances
public networking by maintaining streamlined connections for multiple carriers
and switches."
    VeriSign's NetDiscovery solution manages the call content and call data
intercept, provisions the intercept event, converts calls and call data into a
required legal standard format, and delivers the call data and call content
directly to the law enforcement monitoring facilities using highly secure IP-
VPN technologies.

    About Arrival Communications
    Arrival Communications is a competitive local exchange carrier (CLEC),
providing voice and data services to underserved cities throughout California.
The company offers a full suite of business products including, SDSL and T1
broadband Internet access and local, centrex, long-distance, toll free, voice
mail, and teleconferencing voice services. Founded by a group of individuals
with extensive experience in the telecommunications industry, the privately
held company based in Bakersfield, California utilizes a highly trained,
direct sales force to proactively design cost-effective voice and data
solutions for small to medium sized companies. Voice over DSL and other
advanced technologies allow Arrival to deliver business telecommunications
services at costs well below the traditional telephone company. For more
information, visit

    About VeriSign
    VeriSign, Inc. is the leading provider of digital trust services that
enable everyone, everywhere to engage in commerce and communications with
confidence. VeriSign's digital trust services create a trusted environment
through four core offerings -- Web presence services, security services,
payment services, and telecommunication services -- powered by a global
infrastructure that manages more than seven billion network connections and
transactions a day. Additional news and information about the company is
available at

     Media Relations: Penny Thomas, pthomas at, 360-493-6724
     Investor Relations: Steven Gatoff, sgatoff at, 650-426-4560

    Statements in this announcement other than historical data and
information, including but not limited to, statements regarding benefits of
VeriSign's restructuring and new service offerings, constitute forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These statements involve
risks and uncertainties that could cause VeriSign's actual results to differ
materially from those stated or implied by such forward-looking statements.
The potential risks and uncertainties include, among others, VeriSign's
limited operating history under its current business structure, the risk that
businesses of previously-acquired companies as well as other businesses will
not be integrated successfully and unanticipated costs of such integration;
uncertainty of future revenue and profitability and potential fluctuations in
quarterly operating results; the ability of VeriSign to successfully develop
and market new services and customer acceptance of any new services; the risk
that VeriSign's announced strategic relationships may not result in additional
products, services, customers and revenues; increased competition and pricing
pressures; risk that the company may not be able to achieve anticipated cost
savings from the restructuring; and risks related to potential security
breaches. More information about potential factors that could affect the
company's business and financial results is included in VeriSign's filings
with the Securities and Exchange Commission, including in the company's Annual
Report on Form 10-K for the year ended December 31, 2001 and quarterly reports
on Form 10-Q. VeriSign undertakes no obligation to update any of the forward-
looking statements after the date of this press release.

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SOURCE  VeriSign, Inc.
    -0-                             10/02/2002
    /CONTACT:  media, Penny Thomas, +1-360-493-6724, or pthomas at,
or investors, Steven Gatoff, +1-650-426-4560, or sgatoff at, both of
VeriSign, Inc./
    /Web site:

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R. A. Hettinga <mailto: rah at>
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44 Farquhar Street, Boston, MA 02131 USA
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