Israeli start-up MaxBill has officially confirmed to “Globes” that it won a Telekom Austria (NYSE:TKA) tender to replace its billing system. MaxBill declined to state the precise size of the project, but it estimated to be worth tens of millions of dollars. Industry sources inform “Globes” that the contract could be worth $20 million in the long term, compared with published estimates of $10 million. The contract was finally signed last August.
MaxBill develops and markets financial solutions for communications and infrastructure services providers. MaxBill will install its Universal Consolidating Platform (UCP) system at Telekom Austria, which has an estimated 3.8 million subscribers for its fixed-line services. The project is currently at the specification stage, after officially commencing in October.
The project has three stages, since Telekom Austria plans to begin a pilot program with a limited number of subscribers. In the second stage, which will begin in the third quarter of 2003, all of the company’s business customers will be transferred to the new platform, with the rest following in the third stage in the first quarter of 2004.
Telekom Austria sought a billing system that could unify the billing of various services and synchronize different systems. Consultancy firm Logan-Orviss International managed the year-long bidding process. Convergys (NYSE:CVG), Kenan Systems [acquired by CSG Systems International (Nasdaq; XETRA:CSGS)] and Amdocs (NYSE: DOX) also participated in the tender. Amdocs and MaxBill reached the final stage in June 2002.
MaxBill quotes Telekom Austria billing project director as saying in an interview with “Billing Magazine”, “It was clear that MaxBill was in a significantly stronger position than Amdocs.”
MaxBill CFO Menachem Levy told “Globes” that, in light of the anticipated revenue, the company did not plan to raise money from external sources in the near future. He said the company had been profitable for over a year, and was bidding in several tenders by European cellular operators and infrastructure companies.
MaxBill’s billing platform supports the systems of established fixed-line, cellular, and infrastructure companies in the US, Europe and Far East. The company recently won a $2 million tender to replace billing systems for Italian utilities company AMPS.
MaxBill president Micha Himmelman, chairman Hadar Himmelman, and VP development Kirill Richter founded the company in 1997. MaxBill has raised $10 million to date in three financing rounds. Investors include European venture capital fund p3 Technology Partners, Israeli funds CMZ Technology and Azritech Fund, and company founders and employees. MaxBill has 130 employees.
Published by Globes [online] - www.globes.co.il - on February 4, 2003