Amdocs Ltd. (NYSE: DOX) has signed a five-year services extension agreement with South African telecommunications services provider Telkom SA Ltd. (NYSE; JSE: TKG). Although the company did not disclose the size of the deal, it is clearly large, since it includes maintenance and support services for the Amdocs customer experience systems deployed at Telkom SA since 1999. Judging by contracts of a similar size, the contract announced today is probably worth several tens of millions of dollars, if not more. Telkom SA previously renewed its contractual engagement with Amdocs for one year at a time.
Amdocs develops and provides customer care and billing systems to telecommunications operators and financial institutions. Its consolidated billing, CRM and order management platform deployed at Telkom SA replaced disparate legacy systems for voice and data lines of business. Amdocs said that its platform, once fully rolled out, should help Telkom SA to create an integrated and intentional customer experience by ensuring better customer service and creating opportunities to bring more value to its customers.
Telekom SA had 2.4 million domestic customers, 280,000 Internet subscribers, and 550,000 business subscribers as at the end of 2006.
Amdocs chief marketing officer Michael Matthews said, " Amdocs services and customer experience systems empower Telkom SA to expand beyond the borders of South Africa and transform itself into a leading provider of ICT services. As South Africa moves closer to the 2010 FIFA World Cup, we will work together with Telkom SA to help it capitalize on the booming economy as the company offers new services, such as media and entertainment, to a growing customer base across Africa."
Amdocs, which is managed by CEO Dov Baharav, currently has a market cap of $7.5 billion. The company posted a net profit of $120.6 million on $712.1 million in revenue in its third fiscal quarter. It recently announced that its CFO Ron Moskowitz would be stepping down in November, and would be replaced by his deputy, Tamar Rapaport-Dagim.
Published by Globes [online], Israel business news - www.globes.co.il - on July 30, 2007
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