SOURCE: Strata8 Networks

January 17, 2008 11:00 ET

Strata8 Networks Launches Enterprise Cellular Service to Address 'Wireless Creep'

Strata8 Networks Secures $8 Million in Funding and Launches Enterprise Cellular Service to Offer Enterprises Greater Operational and Cost Control Over Wireless Services

BELLEVUE, WA--(Marketwire - January 17, 2008) - Strata8 Networks, a service provider offering cellular services over licensed spectrum in key markets throughout the United States, today announced the launch of its Enterprise Cellular service, designed to address the increasing costs of 'wireless creep' and better manage and control enterprise wireless expenses. The company also announced that it secured $8 million in funding from Globespan Capital Partners, Lightspeed Venture Partners and Wirefree Partners, LLC.

Strata8, through its Enterprise Cellular service, enables enterprises to drastically reduce cellular and telecommunication costs by redirecting cellular calls through an enterprise's own network, billed at the same rate as landline calls.

"Companies are increasingly falling victim to 'wireless creep,' paying thousands of dollars per month in uncontrolled and growing cellular charges," said Andrew Buffmire, CEO of Strata8 Networks. 'Wireless creep' arises from unnecessary, hidden cellular expenses rooted in the per minute difference between cellular and landline calls, which can be as high as 80 percent. As noted by Buffmire, "The Strata8 Enterprise Cellular service avoids these expenses by giving enterprises direct control and management of their own cellular services."

'Wireless creep' slowly escalates across an enterprise, driven by many factors, including: wireless calls made or received in an office or at an employee's desk when a landline phone is nearby; high costs for cellular overage minutes; cautionary purchase of excessive group minute pools; and the continual management of costs related to the integrated business and personal wireless service. Mr. Buffmire states, "We find that an enterprise can reduce telecommunication expenses by up to 25 percent by addressing 'wireless creep' through the Strata8 Enterprise Cellular solution."

Strata8 Networks' Enterprise Cellular service enables an enterprise to use cellular phones at the office in the same way and under the same incremental cost structure as landline phones. Within the Strata8 Enterprise Cellular local enterprise coverage area, cellular users incur no additional usage charges when calling other company extensions or other Enterprise Cellular subscribers. When users leave the Strata8 Enterprise Cellular coverage area, they automatically register to one of Strata8 Networks' roaming partners.

"This is a disruptive, innovative solution that addresses the changing ways enterprises and their employees use and pay for wireless services," Buffmire said. "It not only improves telecommunication efficiencies across the enterprise, but also significantly reduces costs while allowing employees to use their wireless phones how and where they want to."

About Strata8 Networks

Based in Bellevue, Washington, Strata8 Networks offers cellular services on licensed spectrum in 16 initial markets across the United States. Strata8 has designed and deployed a state-of-the-art wireless network with the objective of changing the way enterprises use and manage cellular services. Strata8 Enterprise Cellular enables enterprises to obtain cellular services within local coverage areas using carrier-class technology. As a result, enterprises obtain the same level of cost-savings, control, and application integration they expect from other mission critical services, such as data networking and landline telephony. Strata8 partners with best-of-breed operational support system, software, infrastructure and antenna providers to deliver reliable, high-value Enterprise Cellular services to enterprises in each of its markets.

In addition, through its emerging Application Programming Interfaces (APIs) and Software Development Kit (SDK), Strata8 will open its core wireless carrier switching platform for third-party application and services integration. This functionality provides a "user friendly," enterprise-defined path for new applications on the broader carrier-signaling network. This unique approach, while disruptive to the existing model of wireless deployment and service offerings, stands to accelerate the momentum towards open wireless platforms to the benefit of enterprises.