ECtel Expands in UK and Singapore

Israeli revenue management vendor ECtel has announced it is opening new operations in the UK and Singapore. Read the press release here.

The expansion comes at a time where there is renewed evidence of cost-cutting by communication providers. On top of the many stories about job reductions, there are also signs that operators are cutting back on capital expenditure. For example, AT&T have announced they will reduce capex in 2009 by 10-15% compared to 2008. This follows the prediction of ECtel’s CEO, Itzik Weinstein, who said that telcos would be looking to restrict capex during a recent interview with talkRA. In that interview, he promoted ECtel’s new strategy of leveraging its balance sheet to offer alternative, opex-driven, purchasing arrangements to customers, stating that these would represent a growing proportion of sales in 2009. Given that they have the confidence to invest in enhanced local support for their European and AsiaPac markets, it looks like ECtel is putting its money where its mouth is, and going on the offensive to secure and grow market share. Two good questions to mind. First, will geographical expansion lead to increased rewards for ECtel? Second, will rival vendors follow ECtel’s lead, or will they scale back instead? Watch this space to find out.

Eric Priezkalns
Eric Priezkalns
Eric is a recognized expert on communications risk and assurance. He was Director of Risk Management for Qatar Telecom and has worked with Cable & Wireless, T‑Mobile, Sky, Worldcom and others.   Eric was lead author of Revenue Assurance: Expert Opinions for Communications Providers, published by CRC Press. He was a founding member of Qatar's National Committee for Internet Safety and the first leader of the TM Forum's Enterprise Risk Management team. Eric currently sits on the committee of the Risk & Assurance Group, and is an editorial advisor to Black Swan. He is a qualified chartered accountant, with degrees in information systems, and in mathematics and philosophy.   Commsrisk is edited by Eric. Look here for more about Eric's history as editor.
  • No more than a dead cat bounce, since the company cap is at 1/3 of its cash reserves.
    The timing is rather interesting since ECtel has a couple of UK customer logos for a while already, same for far east…
    Might serve as a window dressing, a prep for a potential acquisition.
    http://www.davemanuel.com/2007/12/31/what-is-a-dead-cat-bounce/

    Looking forward to continue watching and finding out.