TheMarker, November 17, 2003
Portugal's biggest cable TV company deploys XACCT N2B

Portugal’s largest provider of cable services has chosen XACCT Technologies' platforms to provide tiered pricing packages, the Israeli-American firm announced today.

XACCT Technologies, which provides network data management platforms for telecom companies, said TV Cabo, a wholly owned subsidiary of PT Multimedia, has deployed XACCT’s Network-to-Business software platform to implement a tiered pricing model for its broadband Internet service.

Instead of traditional flat-rate pricing models, TV Cabo will offer differential pricing for browsing based on a combination of volume and destination.

Since the introduction of tiered pricing models in 2001, NetCabo has experienced accelerated subscriber growth and reduced churn, making it Europe’s fourth largest broadband ISP with over 203,000 subscribers, XACCT says. TV Cabo operates its own domestic cable broadband Internet infrastructure but must use international carriers for all Internet traffic to IP addresses outside Portugal. Like many other European cable operators, TV Cabo found a flat fee to be financially unsustainable, given the cost differential between domestic and international Internet traffic. It also needed to crack down on bandwidth abuse through enforceable service agreements.

"Cable operators, like any other business, must price their services in line with the cost of providing the service, in order to sustain a financially viable operation,” said Eric Gries, president and CEO of XACCT Technologies. "Bandwidth abuse and revenue leakage can be major problems for cable data service providers if they don’t have a complete understanding of their network usage. We have been working with TV Cabo for the past two years to address some of these challenges. We are very pleased to be a partner in their continued growth as they carve out new routes to revenue."

The XACCT solution collects all Internet usage data and aggregates it by individual user profiles. By dynamically referencing the destination IP address with the username, XACCT effectively splits the Internet traffic into two categories – national and international. This granulation of the data enables TV Cabo to bill by volume against two different fares, charging a premium for international Internet traffic.

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