June 7, 2007
To: Motive’s Worldwide Customers and Partners
From: Alfred Mockett, Chairman and Chief Executive Officer
When Motive was founded in 1997, the company’s vision was simple: use the power of the Internet to help businesses deliver a better customer experience. Our roots in broadband customer care began by managing a single connection to a single PC. Today, that beginning seems quaint, if not obsolete. Research indicates that there will be more than one billion networked devices worldwide by 2010. Everything from televisions to game consoles, mobile phones, automobiles and yes, even your refrigerator will soon have a broadband connection.
Motive has been at the forefront of these changes. We anticipated the trend toward the networked home, and in 2005 introduced Motive Home Device Manager (HDM) which enables broadband service providers to view and remotely manage networked devices in consumers’ homes to quickly resolve service issues. Leading service providers fast embraced this innovation; in the first 20 months since its launch, Motive signed more than 20 HDM contracts and continues to aggressively pursue the market for home device management.
We’ve been a leading proponent of device interoperability, helping to set and drive industry standards with organizations such as the DSL Forum, Home Gateway Initiative, the Universal Plug and Play Forum and the Digital Living Network Alliance. And we’ve partnered with leading equipment providers such as Thomson, NETGEAR and ZyXEL to make it easier for providers to integrate Motive software with their services.
The result of this strategy is that today, Motive software manages more than 60 million broadband subscribers and over two million home gateways worldwide. Collectively, operators who are Motive customers serve 80 percent of DSL subscribers in North America and 50 percent of the DSL subscribers in Europe.
As new technologies emerge, Motive continues to lead, not follow. Today, telecom providers worldwide such as AT&T, BT and Verizon are rolling out next-generation VoIP and broadband TV initiatives. To help ensure the success of these initiatives, Motive introduced IPTV Service Assurance, a solution aimed at providing improved visibility and control of the entire IPTV service delivery network. And in February 2007, Motive announced that BNS Data Logistics, a distributor of hardware and customer premises equipment based in the Netherlands, will offer Motive HDM software as an outsourced broadband management service to providers throughout Europe for all their next-generation digital services, including VoIP, IPTV and home networking.
Going forward, we believe that the future of broadband is mobile. The market for smartphones capable of handling both voice calls and advanced data services grew at a rate of 75 percent in 2006, and Gartner predicts there will be approximately 280 million smart-phones sold in 2009 alone. To help our customers capitalize on these important opportunities, we’ve introduced Motive Mobile Service Management, a new solution that helps broadband and mobile service providers ensure a seamless, consistent customer experience across converged devices, services and networks.
From an operational perspective, we’ve made changes that have aligned Motive’s business more closely with our customers. For example, we’ve divested the company of non-strategic segments and have focused the business solely on our core market in the communications sector. We’re targeting 20 percent of our revenue on product development, and have opened a new development center in Bangalore, India. And, we continue our drive to help broadband and mobile service providers deliver a better experience with their products and services.
I believe that we are seeing our strategies bear fruit, thanks to the focus on execution by our management team and staff. We are extending our reach—both geographically and technologically—and both our new and existing customers are responding positively. As the market for broadband and mobile service management continues to grow, we look forward to an exciting future.
Alfred Mockett
Chairman and CEO
Motive, Inc.
