Subex Lands US$50M Contract with BT

By Eric Priezkalns 29 Sep 2008

UK operator BT and Indian vendor Subex have signed a new three-year framework contract. Subex will supply products and services relating to revenue assurance, fraud detection, interconnect billing and event integrity. According to the press release, the deal is estimated to be worth US$50 million.

It looks like this deal builds upon the existing relationship between Subex and BT’s Global Services division. Some of the elements, like managed services for the BASALT data repository, were anticipated in a previous press release of January this year. The deal comes at a good time for Subex. The vendor is under pressure from investors wanting to see a turnaround in fortunes. Subex suffered big losses for the last financial year. After making cutbacks, Subex needs to show increasing profitability each quarter this year if it is to meet expectations.

Eric Priezkalns

Eric is the Editor of Commsrisk. Look here for more about the history of Commsrisk and the role played by Eric.

Eric is also the Chief Executive of the Risk & Assurance Group (RAG), a global association of professionals working in risk management and business assurance for communications providers.

Previously Eric was Director of Risk Management for Qatar Telecom and he has worked with Cable & Wireless, T‑Mobile, Sky, Worldcom and other telcos. He was lead author of Revenue Assurance: Expert Opinions for Communications Providers, published by CRC Press. He is a qualified chartered accountant, with degrees in information systems, and in mathematics and philosophy.

6 Comments on "Subex Lands US$50M Contract with BT"

AJ | 2 Oct 2008 at 2:26 pm |

HI
what happened to cVidya RA with BT
“cVidya Networks signs UK Revenue Assurance Agreement with BT ” May 29,2007
http://www.cvidya.com/english/Article.aspx?Item=352

AJ
Newsgopher | 2 Oct 2008 at 2:40 pm |

Hi AJ,

cVidya is still the main supplier of revenue assurance software to BT Group. The Subex deal mostly focuses on BT’s Global division, and also includes products and services that sit on the periphery of revenue assurance.
Anas zungy | 13 Oct 2008 at 6:15 pm |

I think Subex are doing well, but I still waiting the new version of Moneta cause the current one has many problems and restrictions.
AJ | 18 Oct 2008 at 8:10 pm |

Hi Anaz

I dont think so……
they still losing money

What do you mean “cause the current one has many problems and restrictions”?
JC | 20 Oct 2008 at 6:52 am |

Hi AJ,

Not sure where you are getting your information from, but Subex has already posted an operational profit this quarter. Not bad for a company trying to consolidate one of the largest acquisitions in India for a company of its size.

Anyway, I have been a Subex shareholder for some time, and this is one company that consistently bounces back. This is somewhat the same pattern when Subex acquired Azure…everyone said that Subex would fold. They took about 6-7 months to consolidate and now they’re back on track.

In fact, I’m looking forward to consolidation of smaller Vendors into Subex sometime soon :)
Arjun | 27 Oct 2008 at 11:06 pm |

They need to bounce like Beyonce for this one :) FCCB sword hanging over their head for $200M when the stock needs to be close to rs700 and now down to 30s i believe….also ttm rev is $37m (down from $100m level) with loss of $15m. financial engineering driven acquistion hurts. Hope they get back but being a stockowner me thinks i am better of praying to lord rama, krishna and shiva.