TCS 2013 Annual Report - page 13

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broader use of Very Small Aperture Terminal satellite terminals and components. In addition to the aforementioned GTACS and
CS2 contract vehicles. TCS continues to submit proposals to participate in large government procurement vehicles. There can be
no assurance that our proposals will be successful or that we will receive additional awards or contracts.
Growing Need for Cybersecurity.
Escalating focus by government agencies to protect their online assets has brought the
importance of cybersecurity and associated solutions to the fore. We have contract vehicles for the government’s surging
demand for information technology cybersecurity training, cyber technical solutions, and related procurement support. Steep
growth in spending to the multi-billion dollar level by U.S. federal agencies on cyber initiatives is expected over the next five
years. The expertise and processes developed by our Government Segment personnel are being adapted to meet the online
security needs of commercial clients. We are proficient in recruiting and developing cyber professionals and our Art of
Exploitation training is based on intellectual property developed by the company to support cybersecurity initiatives. The
training covers a clear set of leading cyber methodologies to produce a certified cyber scientist.
Government Outsourcing of Network and Telecom Technical Functions.
Federal defense and civilian agencies, as well as
state and local governments, are increasingly contracting with specialist teams for functions such as network management, and
for projects such as enablement of reliable, comprehensive in-building wireless communication service. TCS field support and
network operations professionals enjoy a favorable reputation for work in harsh environments. We have long-term relationships
with federal agencies, the State of Maryland and the City of Baltimore.
Growing Use of Secure Wireless Communications for Defense, Intelligence and Homeland Security.
Wireless
communications and location technology are key initiatives within the federal government for both defense and civil
infrastructure including the Commerce Department’s FirstNet broadband network which is dedicated to public safety. Wireless
communications in emergencies are very important, as first responders need to be able to share information across agencies and
departments where wireline systems may be unavailable. We believe that our expertise in the areas of 9-1-1, location-based and
messaging services, and secure satellite communications can be leveraged to provide the needed wireless infrastructure for the
U.S. Departments of Homeland Security and Defense, and we are pursuing opportunities to provide such products and services.
SwiftLink is designed to provide secure voice and data communications through encrypted satellite links.
Secure Teleport, Space Segment and Integration Capabilities with Deployable Systems as a Bundled Solution.
Government
customers can benefit from single-sourcing secure communications solutions which include TCS’ secure U.S. landing site for
backhaul traffic as well as network engineering expertise and secure remote terminals. We believe that TCS has a competitive
advantage, because it can offer all of these elements from a single vendor.
Application of Commercially Proven Technology to Government Solutions.
Government customers increasingly are using
commercial carrier networks. Procurement officers have expressed a preference for solutions that incorporate proven
commercial technology, rather than reliance on government research and development funding. Our portfolio of software,
patented intellectual property, and teams of wireless and encryption specialists position us to tap into this opportunity.
Commercial Segment Products and Services
We engineer and develop software for cellular carrier and enterprise networks that enables the delivery of secure and
personalized content, services, and transactions to wireless devices. Our extensive research and development investment has led to a
large patent portfolio, mostly related to our commercial solutions. We design our software using industry standards for easy
implementation, customization, and interoperability with other network components and we have service and technology partnerships
with companies around the world. We manage several network operation centers that host software and equipment for which
customers, mainly wireless network operators, make recurring monthly usage payments, usually based on a measure of the volume of
usage.
Our primary deliverables are:
Licensed Software-Based Infrastructure: Xypoint
®
Location Platform (“XLP”) for mobile location-based services:
Our
Xypoint Location Platform infrastructure system interacts with wireless networks to extract the precise location of a user’s
device. In order to determine a user’s location with sufficient precision for U.S. public safety compliance and for commercial
location-based applications, our technology interacts with networks that have incorporated Assisted GPS systems that use Global
Positioning System (“GPS”) chips in user handsets. Our XLP can also work with network triangulation software which some
carriers have added to cell towers and switches in the network. We have been a leader in developing the location platform
standard called Secure User Plane for Location (“SUPL”) and have incorporated the technology in our products. Our platform
also provides privacy controls so that the wireless device user may control access to the user’s location information, and exposes
location application programming interfaces (“APIs”) to location-based applications. We offer carriers around the world the
complete LBS solution continuum, with the expertise to enable infrastructure, middleware and application functionality
.
Mobile
operators have made large capital investments in infrastructure for wireless data and location determination technologies, and are
motivated to grow subscriber use of services that enhance subscriber loyalty and average revenue per user. We are well
positioned to provide carrier-branded enhanced services that efficiently use the carriers’ capacity to deliver a user experience that
merits incremental service payments and continuous use.
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