skip to main content
Close Icon

In order to deliver a personalized, responsive service and to improve the site, we remember and store information about how you use it. This is done using simple text files called cookies which sit on your computer. By continuing to use this site and access its features, you are consenting to our use of cookies. To find out more about the way Informa uses cookies please go to our Cookie Policy page.

Global Search Configuration

Ovum view


On April 29, 2015, Amdocs announced its intention to acquire a substantial majority of Comverse’s business support systems (BSS) business unit for $272m. If the conditions are met, the deal will complete before the end of September 2015. The announcement is interesting on three fronts: the implications for Amdocs, those for Comverse, and developments for the wider telecoms software industry.

Consolidation will deliver scope and scale

Amdocs has a strong BSS suite that is core to its customer experience solutions: over 85% of its revenue comes from services and it is almost exclusively focused on the telecoms vertical. Based on 2014 financial results, Amdocs’ revenue, at $3.6bn, is six times larger than Comverse’s. Unlike its earlier acquisitions of Actix and Celcite, Amdocs’ move doesn’t extend its product portfolio, but the deal does deliver a longer and more diversified list of customers, including cable and satellite companies in China, Russia, and other countries in Asia-Pacific, Europe, and Latin America. Amdocs’ organic revenue growth slowed to around 2–3% in 2012 and 2013, but acquisitions in 2013 raised it to 6% between 2013 and 2014. Continued revenue growth and investment is of paramount importance in a market that is consolidating around large network equipment providers (NEPs).

Comverse’s effective operations have clearly been hampered by its size, and the company will be vastly different once the deal completes – this is the second major announcement made in April concerning its future strategy. On April 15, it announced an agreement for a strategic relationship with Tech Mahindra, although employees from some functions in Comverse’s Digital Services business unit are likely to become Tech Mahindra employees. Comverse claims that the deal with Amdocs will help its digital services innovation for IP-based communications, especially the rollout of 4G/VoLTE/LTE services, and it will continue to exist as a separate company helping a wider enterprise base to transform operations and enhance unified communications.

Other recent announcements in this market stretch right across the spectrum. At the start of April, Orga Systems applied for preliminary insolvency proceedings, which highlights the harsh environment. At the other end of the scale, Nokia has announced its intention to buy Alcatel-Lucent. In 2012, Nokia sold its BSS holdings to Redknee and focused on its mobile broadband and operations support systems (OSS) offers. The Alcatel-Lucent purchase will return BSS and fixed-line assets to the Nokia fold, and the combined entity, worth around €25bn, will have an end-to-end OSS/BSS portfolio.

So what does this mean for OSS/BSS vendors and Amdocs specifically? The current climate favors size – geographical scale and an end-to-end view across the product line. NEPs in particular are in a strong position to bundle their support solutions with their network contracts. Smaller vendors with specific offers are clearly struggling; there are opportunities with tier-2 and 3 operators and MVNOs, but smaller vendors lack the required local presence to leverage these.

Amdocs is a telecoms software specialist and competes favorably, like for like, with larger NEPs in the BSS and OSS space. Its acquisition of Comverse clearly delivers some of the scale necessary, but we hope to see more from it in the near future to sustain its place at the top of the OSS/BSS table.



Clare McCarthy, Practice Leader, Telecoms Operations and IT

Recommended Articles

  • Enterprise Decision Maker, Enterprise IT Strategy and Select...

    2017 Trends to Watch: Big Data

    By Tony Baer 21 Nov 2016

    The breakout use case for big data will be fast data. The Internet of Things (IoT) is increasing the urgency for enterprises to embrace real-time streaming analytics, as use cases from mobile devices and sensors become compelling to a wide range of industry sectors.

    Topics Big data and analytics IoT

  • Consumer & Entertainment Services, World Cellular Informatio...

    Mapping the Future of Enterprise Messaging: SMS, RCS, and Chat Bots

    By Pamela Clark-Dickson

    In this paper, we analyze the results of the Enterprise Messaging Survey 2017, placing the findings in the context of the rapidly evolving business-to-consumer communications market.

  • Consumer & Entertainment Services, Service Provider Technolo...

    FAANG to sink its teeth deeper into TV in 2018

    By Rob Gallagher 14 Dec 2017

    Few trends will be bigger in 2018 than the transformation of TV and video by OTT technology and services. Here we present five Ovum predictions related to the most influential players: Facebook, Amazon, Apple, Google, and Netflix – or FAANG, for short.


Have any questions? Speak to a Specialist

Europe, Middle East & Africa team - +44 (0) 207 017 7700

Asia-Pacific team - +61 (0)3 960 16700

US team - +1 646 957 8878

+44 (0) 207 551 9047 - Operational from 09.00 - 17.00 UK time

You can also contact your named/allocated Client Services Executive using their direct dial.
PR enquiries - Call us at +44 7770704398 or email us at

Contact marketing -

Already an Ovum client? Login to the Knowledge Center now