RADCOM Stock

RADCOM Ltd. (RADCOM) provides 5G ready cloud-native network intelligence and service assurance solutions for communication service providers (CSPs).

The company's solutions support CSPs while launching and running 5G networks (as well as 4G and 3G), delivering dynamic, on-demand service assurance and network troubleshooting for real time customer and service insights.

The company offers an advanced 5G network intelligence portfolio of solutions for large scale networks, providing operators with a smart, efficient and on-demand approach to network intelligence that meets the challenges of assuring the customer experience and service quality in the 5G era. The company's solutions leverage the move to an all container based cloud-native architecture and the use of Kubernetes (an open-source system for automating deployment, scaling, and management of containerized applications) for the orchestration of the complete solution. This new approach is based on moving the whole design to a Kubernetes-based micro-service architecture, such that it can be deployed on multiple types of clouds, both private and public. The company's solution allows CSPs to have an in depth understanding of their customer experience, receive insights and effectively troubleshoot the network performance. RADCOM ACE, the company's flagship 5G automated assurance solution, is built to ensure that the transition of CSPs' customers to the 5G network is seamless. RADCOM ACE is explicitly designed to deliver automated, 5G assurance for end-to-end network intelligence (from the radio access network, or RAN to the network core), delivering AI-driven insights for 5G network operations, the cornerstone to CSPs' customer experience strategy. RADCOM enables CSPs to collect and analyze multiple data types using artificial intelligence/machine learning, or AI/ML, technology, automatically generating insights for a wide-range of use cases, including automated assurance, cost optimization, monetization, network advanced troubleshooting and much more. RADCOM solutions are cloud-native and cloud-agnostic, providing automation and seamless integration with Kubernetes, using a Continuous Development/Continuous Integration, or CI/CD software development pipeline for faster time to market and integration into multiple clouds.

The RADCOM Portfolio includes RADCOM ACE - the company's portfolio of automated assurance solutions, and RADCOM NWDAF - Network Data Analytics Function for closed loop automation:

RADCOM ACE: The company's automated assurance portfolio of solutions helps CSPs monitor data in real-time and proactively resolve customer experience issues before they impact their business for 5G and 4G. RADCOM ACE includes automated assurance, advanced network insights, automated insights via AI/ML, and cloud-native network visibility. RADCOM ACE includes:

RADCOM Service Assurance: A full assurance solution that smartly and passively collects and analyzes multiple data types (network packets, events, performance monitoring/functional monitoring counters, or PM/FM counters, and more) across various domains (fixed and mobile) and generations of technologies (5G, 4G, 3G) from access to the core to provide real-time subscriber analytics.

RADCOM Network Insights: Empowers CSPs to manage and optimize 5G and 4G networks by displaying insights into the service quality, overall customer experience and drilldowns to troubleshoot via network intelligence applications and dashboards, also providing automated, AI/ML-based analytics.

RADCOM VIA: Provides complete visibility into the CSP's network with network tapping, advanced filtering, and packet brokers that can be deployed stand-alone or with RADCOM ACE, the company's automated assurance solution.

RADCOM NWDAF: Intends to offer automated, AI/ML-based analytics 3GPP standards-based, enabling closed-loop, zero-touch network operations and an improved customer experience.

The company specializes in solutions for next-generation mobile and fixed networks, including 5G, Long Term Evolution, or LTE, VoLTE, Voice over Wifi, or VoWifi, IP Multimedia Subsystem, or IMS, Voice over IP, or VoIP, and Universal Mobile Telecommunication Service or UMTS.

The company's solution portfolio enables CSPs that are deploying 5G networks, as well as CSPs that are evaluating or migrating their 4G, 3G and 2G legacy networks to fully virtualized cloud-native networks to have one platform that covers their entire network, from 5G, 4G, and 2G, providing fully virtualized cloud-native network intelligence and service assurance.

The company's solution is deployed at multiple operators (CSPs) globally, such as AT&T(AT&T Services, Inc.), Dish, Beeline, Globe, Rakuten (Rakuten Mobile, Inc.) and Telefonica.

By developing and adapting the company's solutions to meet the industry's most stringent requirements it has expanded its customer base to include new opportunities and markets while expanding its footprint with existing customers by supporting them in their transition to a 5G network. As new and existing customers seek to manage their existing networks while evaluating and deploying cloud-native 5G networks and container-based architectures, the company is well positioned with its advanced automated assurance solutions and its growing industry track record to provide both CSPs that are deploying 5G networks and CSPs that are evaluating or migrating their 4G, 3G and 2G legacy networks to fully cloud-native networks with one complete platform to cover their entire network intelligence needs, including 5G, 4G, 3G, and 2G.

CSPs across the globe use the company's solutions to deliver high quality services, reduce churn, manage network performance, analyze traffic and enhance customer experiences. The company's solutions incorporate cutting edge technologies and a vast knowledge gained in its advanced work with some of the most technologically innovative CSPs in the industry. The company's carrier-grade solutions support both mobile and fixed networks and scale to terabit data bandwidths to enable big data analytics.

The company's technological leadership was reinforced by Rakuten Mobile's 2019 selection of its solutions as their 'eyes to the network' in the support of their launch of the world's first end-to-end cloud-native virtualized network. Using the company's solutions, Rakuten monitors its entire network end-to-end, including the world's first fully virtualized RAN.

During 2020, the company entered into one of the industry's first 5G network intelligence contract with Rakuten for its recently launched 5G NSA service and upcoming 5G SA service, expected to be launched during 2023.

During 2021, the company announced partnerships with AWS (Amazon Web Services) and Microsoft Azure through which it is offering its RADCOM ACE solution with real-time subscriber analytics and advanced troubleshooting for both telecom operators that are rolling out 5G, Internet of Things, and edge services and operators already running 4G and VoLTE networks.

During 2022, the company announced its selection by DISH Purchasing Corporation, or Dish, to provide its best-in-class RADCOM ACE solution to monitor customers' experience across Dish's 5G Smart Network - the first cloud-native, open radio access network, or OpenRAN-based 5G network in the United States. With that selection, the company was able to strengthen its cooperation with AWS, using Amazon Elastic Kubernetes Service (Amazon EKS) and Amazon Elastic Compute Cloud (Amazon EC2) which provide DISH with an innovative approach to assurance in the cloud, using minimal data center resources while providing real-time insights into the subscribers' experience as soon as new services launch.

The company also announced an additional multi-year 5G contract with a mobile operator in Europe to provide the RADCOM ACE to enhance its end-to-end customer experience by providing real-time analytics for 5G services, which will help the operator deploy and launch 5G smoothly, maintain the highest quality of services and ensure a highly optimized and automated network.

In addition, the company renewed its multi-year contract with AT&T with which it continues its long-lasting and fruitful relationship, providing automated service assurance for its cloud network to ensure the network performance and service quality.

The company's solutions portfolio enables CSPs to smoothly transition their networks to 5G networks. RADCOM's solutions provide automated assurance with built-in AI/ML capabilities that enable operators to adopt a more automated approach to network operations while enhancing the customer experience. With automated insights enabled by AI/ML, operators can also gain rich analytics that improve service quality, save operational costs, boost revenue, and raise network efficiency. It provides a unified, multi-functional portfolio of automated assurance, network insights and visibility solutions that seamlessly integrates into an operator's 5G environment. The company offers solutions for CSPs to gain real-time data and insights into what is happening inside the network to ensure excellent customer experiences and optimize the network performance while saving operating expenses and capital expenditures.

In April 2022, the company announced the extension of its contract with AT&T, providing automated service assurance for AT&T's cloud network to ensure the network performance and service quality. In addition, the company announced its entrance into a multi-year agreement to provide RADCOM ACE to enhance the end-to-end customer experience for a 5G mobile CSP in Europe.

In May 2022, the company announced its selection by Dish to provide RADCOM ACE solution to monitor customers' experience across Dish's 5G Smart Network - the first cloud-native, OpenRAN-based 5G network in the United States. RADCOM ACE at Dish runs on AWS.

In July 2022, the company announced that it is building on its existing relationship with Rakuten Mobile to bring RADCOM ACE, deployed on Rakuten Mobile in Japan, to telecom operators globally through the Rakuten Symphony Symworld marketplace.

In September 2022, the company announced that it renewed its contract with Rakuten Mobile in Japan, to continue and monitor service quality across Rakuten's nationwide deployment and enable Rakuten to gain real-time service and network analytics.

In January 2023, the company announced its entrance into an agreement with a new customer in North America to provide its RADCOM ACE solution to deliver real-time insights into the network performance 24/7 as the operator maintains its 4G network while expanding 5G coverage nationwide.

In February 2023, the company announced the entry into definitive agreements to acquire the technology, intellectual property, and customer agreements of Continual Ltd, a leading mobility experience analytics company that uses AI and ML to deliver advanced insights to help telecom operators improve their subscribers' mobility experience, for an amount of up to $2,500,000. The closing of the acquisition is expected to occur within three months after the signing of the definitive agreements, pending the satisfaction of customary and transaction specific closing conditions and regulatory approvals.

During 2023, the company expects to continue its investment in research and development and to increase its sales and marketing efforts. The company intends to leverage its success with industry leading customers as it seeks to engage with other CSPs that are looking to manage existing networks while evaluating their transition to the cloud-native architectures and 5G network. The company is targeting Tier 1, Greenfield Operators and CSPs who are deploying 5G virtualized networks, as well as CSPs who are evaluating or migrating their 4G, 3G and 2G networks to fully virtualized cloud-native networks and are searching for a cutting-edge network intelligence solution that can cover their entire network needs.

Strategy

The company offers its solutions and expertise to existing tier 1 and innovative CSPs worldwide, which are evaluating or building their 4G, 3G and 2G networks to 5G networks. The company plans to maintain its technical advantage over competitors by further investing in enhancing the analytics and automation capabilities (including advanced AI\ML capabilities) of its solutions to meet the evolving needs of 5G networks.

The key elements of the company's strategy include targeting Tier 1, Greenfield Operators and other CSPs worldwide, who are evaluating or deploying to 5G networks, as well as providing solutions for legacy networks; targeting innovative CSPs deploying 5G networks; and entering into multi-year contracts providing for recurring revenues.

Products and Solutions

The RADCOM Portfolio includes RADCOM ACE - the company's portfolio of Automated assurance solutions, and RADCOM NWDAF - Network Data Analytics Function for closed loop automation.

RADCOM ACE

The company's automated assurance portfolio of solutions helps CSPs monitor data in real-time and proactively resolve customer experience issues before they impact their business for 5G and 4G. RADCOM ACE is an automated, 5G assurance platform for end-to-end network visibility, built based on the company's cloud-native expertise and designed to allow CSPs to manage their networks in a more dynamic and agile way, which can run on private and public clouds, such as AWS, RCP (Rakuten Cloud Platform) and Azure. RADCOM ACE is built to ensure that 5G services continuously run at optimal quality, while at the same time improving the operators' operational efficiency through automation and rapidly enhancing time to market for new services and innovations. RADCOM ACE is the culmination of the company's significant product investment over the last few years and reinforced by customer feedback to enable a new way of monitoring 5G services that ensures a high-quality customer experience as operators transition to 5G.

RADCOM ACE includes automated assurance, advanced network insights, automated insights via AI/ML, and cloud-native network visibility.

RADCOM Service Assurance

RADCOM Service Assurance is a full assurance solution that smartly and passively collects and analyzes multiple data types (network packets, events, PM/FM counters, and more) across various domains (fixed and mobile) and generations of technologies (5G, 4G, 3G) from access to the core to provide real-time subscriber analytics. RADCOM Service Assurance is a cloud-native, 5G-ready, fully service assurance solution that runs on private and public cloud (such as AWS, RCP and Azure), which allows CSPs to gain end-to-end network visibility and customer experience insights across all networks. RADCOM Service Assurance delivers a real-time, high performance, and automated solution that is critical in providing operators customer insights in today's top-tier, high-capacity networks.

The company's patented technology enables RADCOM Service Assurance to efficiently collect data from multiple sources (network events, event detail records and packets) and smartly correlates them into RADCOM Network Insights, driven by AI. This is the key to 5G monitoring. RADCOM's solution is designed to provide network intelligence from the RAN to the core. Built using a dynamic, modular, and stream-based microservices architecture, RADCOM Service Assurance can process large volumes of streaming data at lightning speed with very low latency.

RADCOM Service Assurance offers the service provider full end-to-end visibility of the network across technologies. RADCOM Service Assurance monitors multiple types of services, such as voice, video and data, employing numerous tools and network performance and measurement methodologies to continuously analyze service performance and provide customer experience quality metrics. RADCOM Service Assurance offers users a full array of analysis and troubleshooting tools, delivering a comprehensive, integrated network service view that facilitates performance monitoring, fault detection and network and service troubleshooting from tapping point to network insights. RADCOM Service Assurance displays performance and quality measurements from both the signaling and the user planes, based on a broad range of passive software-based probes, which are installed on standard, non-proprietary third-party hardware that function together with RADCOM Service Assurance to deliver essential functionality.

RADCOM Service Assurance consists of a powerful and user-friendly central management module and a broad range of passive software-based probes used to gather transmission quality data from various types of networks and services, including 5G, VoIP, UMTS, LTE, IMS data and others.

RADCOM Service Assurance provides an advanced set of service assurance monitoring applications: network troubleshooting, network quality monitoring, service quality monitoring, customer quality of service monitoring, and customer service level agreements monitoring.

RADCOM Service Assurance is designed to enable CSPs to succeed in their efforts to address significant technology challenges, including deployment of next-generation networks, such as 5G; migration to and integration of new network architectures; delivery of advanced, complex services, such as VoIP IMS and video quality analytics; and proactive management and quality assurance for all data sessions and calls on existing and next-generation service providers' production networks.

CSPs use RADCOM Service Assurance for a wide array of use cases, such as:

Customer and Service Assurance

Troubleshooting - enables CSPs to 'drill down' to identify the source of specific problems, using tools ranging from call or session tracing to a full decoding of the call flow.

Performance monitoring - allows CSPs to analyze and optimize network component performance levels and customer experience with the goal of identifying faults before they compromise the customer's experience.

Fault detection - automatic fault detection and service KPIs alert CSPs to network problems as they arise.

Mediation - generates call detail records needed to feed the solutions' smart mediation layer, as well as third-party operations support systems and other solutions.

Roaming and Interconnect Analysis

RADCOM Service Assurance is used by CSPs to monitor their roaming and interconnect traffic. By identifying problematic links, CSPs avoid revenue loss, detect problems with specific roaming partners, and manage interconnection KPIs.

Fixed-Wireless Access

Using RADCOM ACE for Fixed Wireless Access monitoring enables CSPs the transition to customer-focused network operations, focus on committed SLAs vs. mobility and plan the full lifecycle of the subscriber while monitoring devices at home, applications used, usage patterns, and bottleneck.

RADCOM Network Insights

As part of RADCOM ACE, RADCOM Network Insights takes the data which has been collected and analyzed by RADCOM Service Assurance and applies cutting edge AI and ML techniques to provide automated anomaly detection and root cause analysis to rapidly resolve customer-impacting issues proactively. RADCOM Network Insights covers a wide range of use cases that provide the operator with an end-to-end understanding of the service quality and customer experience. Also, RADCOM Network Insights offers next-generation tools for network optimization and root-cause analysis, such as call tracing and in-depth packet analysis.

RADCOM Network Insights provides CSPs with real-time actionable business and marketing insights, which are customer centric while still maximizing revenue streams across the organization. These rich, actionable network insights, allows operators to fully visualize their networks and improve the service and customer experience, provide customer impact analysis, and proactively handle issues to fully understand the customer experience and offer an improved Quality of Experience, or QoE, and a reduced customer churn, which is of particular importance in transitioning to cloud-native, software-based, virtualized network environments and 5G networks.

RADCOM's Network Insights solution takes a proactive approach to handling network issues. By using both internal probe-based data and certain external data feeds, RADCOM has the network intelligence to know which data to extract in order to provide the actionable insights required. Key network monitoring metrics can be fed into RADCOM's key quality indicators and converted to Quality of Service. Combined with customer resource management feeds and legacy third-party probe data, the solution enables operators to assess the QoE for the subscriber and make proactive decisions.

RADCOM Network Insights' sophisticated tools are delivered via a powerful data virtualization suite. This enables the CSP to pinpoint necessary data for actionable insights which are required to improve the CSP's customers QoE and therefore to improve the CSP's capital efficiency, providing automated, AI/ML-based analytics that can be integrated with RADCOM ACE or form the foundation for zero-touch automation with RADCOM NWDAF. The solution works across multiple domains (mobile and fixed) and generations of technologies (5G, 4G, 3G). The use cases provided are automated anomaly detection for hundreds of time-based data series like KPI and key quality indicators, or KQIs, root cause analysis, and predictive analytics. Once the company's AI/ML capabilities are deployed on the network, they learn baseline behavior and automatically create thresholds without operators needing to configure them.

RADCOM VIA

RADCOM VIA provides complete visibility into the CSP's network with network tapping, advanced filtering, and packet brokers that can be deployed stand-alone or with RADCOM ACE. It solves the critical challenges telecom operators face when trying to gain visibility into the new container-based network functions in 5G. The solution offers host-based and pod-based tapping and filtering, thus enabling to mirror traffic to the company's system in a containerized-based network. This was a challenge at this type of architecture and the company has an innovative approach to solve it. In addition, the company's advanced packet brokers enable intelligent traffic distribution, filtering, and load balancing across multiple clouds and domains.

RADCOM VIA enables CSPs to virtually, intelligently and efficiently: manage, scale and load balance the network traffic; automate and synchronize visibility and assurance, onboarding and configuration; distribute traffic between probes without having to duplicate traffic and waste network resources; filter and analyze traffic with application-based routing; and utilize a unified and centralized management solution.

RADCOM NWDAF

The RADCOM NWDAF is a network function in the 5G core which intends to collect data, analyze it in multiple use-cases and cause changes in the core to improve the overall performance and quality of experience. The solution is fully integrated with the Network Repository Function enabling communications with other network functions in the core with analytics provided through APIs. The solution offers automated, AI/ML-based analytics as a 3GPP standards-based NWDAF function enabling closed-loop, zero-touch network operations and an improved customer experience.

Sales and Marketing Organization

The company mainly sells directly to customers throughout the world through its executives and sales representatives in North America, Europe, Latin America, the Asia Pacific and Israel, which are supported by local representatives and subcontractors in the local markets. During 2022, these direct sales were made mainly in North America, South America and Asia. In North America, the company operates mainly through RADCOM US (RADCOM, Inc.), which sells the company's solutions to end-users directly and provides support to customers in the North American market. The company's solutions are sold to end-users in North America either by RADCOM US, RADCOM Canada or by it. In Brazil, the company operates through RADCOM Brazil (RADCOM do Brasil Comercio, Importacao e Exportacao Ltda.), which primarily sells its solutions to end-users in the Brazilian market directly. In India, the company operates through RADCOM India (RADCOM Trading India Private Limited), which primarily provides customer support and development services worldwide. Elsewhere, the company's solutions are primarily sold through its sales representatives in Europe, Latin America, the Commonwealth of Independent States, the Asia Pacific and Israel, and supported by local representatives and subcontractors in the local market.

In territories in which the company does not have direct presence, it expanded its outreach by entering into agreements with local distributors and value-added resellers. In 2022, the company signed agreements with new distributors to penetrate new geographical markets and engage with new customers, and to better serve its target markets. The company continues to search for more of these channels to expand its outreach further. In certain territories, the company's distributors and resellers serve as part of its sales, marketing and support teams as its local representatives, helping to sell, deploy and service its solutions, offer technical support in the end-user's native language, and attend to customer needs during local business hours.

Seasonality

Orders of the company's products are affected by numerous reasons, including general market and economic conditions, the impact of inflation and rise of interest rates, overall industry consolidation, the pace of adoption of new technologies and CSPs budgets and multi-year roadmap. Although this results in fluctuations in the company's revenues from quarter to quarter, such fluctuations are not subject to any clear seasonality or consistent seasonal patterns.

Proprietary Rights

The company owns registered trademarks for the name RADCOM and for the name Omni-Q. The company has seven registered patents and several pending patent applications in the United States.

Research and Development Expenses

The company's research and development expenses, gross, were approximately $21.5 million in 2022.

Competition

The company's principal competitors include NetScout System Inc., Infovista S.A. (acquired Empirix Inc.), Elisa Oyj (acquired Polystar), Anritsu Corporation, Viavi Solutions Inc. and EXFO Inc.

History

Radcom Ltd. was founded in 1985. The company was incorporated in 1985 under the laws of the state of Israel and commenced its operations in 1991.