News / January 2007

Tucows Fourth Quarter Investment Community Conference Call is Thursday, February 8, 2007 at 5:00 P.M. ET

TORONTO, JANUARY 31 , 2007 – Tucows Inc. (TSX:TC, AMEX:TCX)
plans to release its fourth quarter fiscal 2006 financial results on Thursday, February 8, 2007, following market close. Company management will host a conference call on Thursday, February 8, 2007 at 5:00 p.m. (ET) to discuss the results and outlook.
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Email Service Management and the big bad world of spam

Those who know Tucows probably know us as either a) a download site or
b) a domain name company. Both of these are of course true, however
providing email services to ISPs and hosting companies is now a big
part of our business and one of our focuses going forward. We provide both a
fully hosted Email Service, where we host webmail, SMTP, POP, IMAP,
filtering, etc. and an Email Defense Service where we do the spam and
virus filtering, and then forward the clean mail to our customer???s mail
server. We currently have millions of paid-for mailboxes. In an effort
to create more awareness about what we do and to generate some
discussion on the spam topic, I wanted to give you some insight into
what we???re doing and get your opinions/thoughts on what you???re seeing
and hearing from your customers.

Since September 2006, we???ve seen a 100% increase in email attacks and
spam hitting our email services. In August we had just over 1 billion
email connections to our hosted Email Service and Email Defense Service
systems, which was relatively ??ònormal???. However, what has happened
since then is something that I don???t think we or anyone else has
accurately projected. Steadily increasing since September, November
connections topped out at around 2 billion. This certainly kept our
24X7 Abuse Team and our systems hopping. What we saw is certainly in
line with what everyone else providing email services has seen,
although few of the other big players publish their numbers. A sample
stat is that the Anti-Phishing Working Group (APWG) reports that the
number of distinct spoof Web sites rose 52% in October 2006 to a
record-shattering 37,444, up from 24,565 a month earlier.

In order to try to keep up with the mounting attacks, we added more IP
based filtering at both the network and application layer to block
connections at the door, worked diligently to improve filtering rules/
techniques and spent $1 million on our email infrastructure.

Even after doing that though, we???re not yet totally happy with how well
we???re defending against attack. Although we are definitely blocking a
ton of spam and keeping many people happy, because of the significant
overall volume increase and new tactics employed by spammers with image
spam, many end users are seeing more spam in their inbox than they were
used to.

One question I have is what is an acceptable accuracy rate? Do end
users expect 96% catch-rates with zero false-positives OR do they base
their acceptance on how many spam get through (not the percentage that
are caught). The ??òindustry??? generally only talks about catch-rates and
accuracy, but more and more I think that end users only really care
about how much spam gets through to their inbox and everyone has their
own personal threshold. The people I???ve talked to tell me that they
don???t care nor do they find it acceptable that the spammer has launched
their annual fall spam campaign and this will result in their mailbox
having 10 spam instead of the normal 5 spam. Sure, deleting another 5
messages isn???t a big deal to some, but at the end of the day most
people just want it to go away. For me personally, I have about 100
messages a day that are put in my spam quarantine, but if 5 messages
get through the filter, I???m not happy.

Something almost all end users don’t realize is that we???re blocking a
lot more than they see even if they have a spam quarantine. Even though
it looks to me as if filtering caught 100 messages today, in fact for
every 100 put into quarantine many more have been blocked right at the
gate because of IP filtering/connection management mechanisms. I can
tell you that on average about 52% of connections are blocked by the IP
filters/connection management techniques versus 21% of connections that
is blocked by the content filters. A good chunk of these blocked
connections won???t be directed at the mailboxes we host, but are rather
Directory Harvest Attacks and other attacks directed at the domain. The
fact that the service they use is doing much more than is visible ??ì
again, they probably don???t care. However, the cost of filtering mail is
only increasing and the more we move toward blocking mail at the door
and not saving everything in a quarantine, the less visible spam
filtering value end users will have in what the service provider is
doing for them and that???s assuming that the end user even looks at
their quarantine today.

If it???s true that end users really only care about how much spam gets
through to their inbox, then we all have some work to do. If people
care, we should do a much better job of educating (and for Tucows it
will need to start with many of you, our partners).
We want to be able to demonstrate to those of you that only outsource your
filtering to Tucows that we are doing a hell of a lot of work to protect
your email infrastructure by giving you visibility into all the attacks
that we???re blocking. And after that, maybe you’ll think about outsourcing
the pain of it all (email and filtering).

So tell us your thoughts…
What is an acceptable accuracy rate?
Are your customers noticing this influx? How are you dealing?

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