Subex to sell activation business to NetCracker

Subex, a global provider of business support systems for telecom service providers, announced its agreement with NetCracker, a telecom OSS provider and part of the $40 billion NEC group, to sell its activation business.

The decision to sell the activation business is a result of a change in Subex strategy to focus on its core products including ROC Solutions (Revenue Assurance, Fraud Management, Partner Settlement, Data Integrity Management etc.) and Managed Services.

This decision and the renewed focus will enable Subex in growing its revenues over 20 percent annually with positive growth in EBITDA and will make the company a significant force in the industry.

The Activation business includes service fulfilment solution (NetProvisioning, NetOptimizer and Vector).

According to Analysis Mason, Subex’s addressable market size in 2011 will be $1.56 billion and is the market leader in the global business optimisation market which includes fraud, revenue assurance, analytics, cost management and credit risk management.

The market is changing and so are the operator’s needs, to remain competitive. Market evolution is towards solutions that allow CSPs to combine data with insights to trigger customer centric near real time decisions. This enables operators to deliver superior customer experience profitably,” said Subash Menon, founder chairman, managing director and CEO, Subex.

Being the leader in the Business Optimization space, Subex is strategically positioned to take advantage of these growth areas through its ROC and Managed Services Portfolio. Hence we have taken a strategic decision to focus on our core products, i.e. ROC Solutions (Revenue Assurance, Fraud Management, Partner Settlement, Data Integrity Management etc.) and Managed Services,” Menon added.

The company is bullish on its core business line as seen in FY12 Q1 results where the order intake for ROC portfolio grew 63.12 percent at $23 million up from $14.1 million in FY11 Q1. Net profit for the company grew 424.46 percent at Rs 132.27 million up from Rs 25.22 million in FY11 Q1. The company’s current qualified pipeline for the continuing business is worth $350 million.  

Subex is committed to its core business line and will continue to invest substantially in solutions and enhancements. The company recently won the Global Telecoms Innovation Award for 2011 for its ROC Fraud Management solution and has been leaders in the Business Optimization space for four consecutive years according to Analysys Mason.

By Team
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