Analyst opinion: Amdocs extends partnership with Telefonica in Latin America
In late January 2015, Amdocs secured another contract with Telefonica, this time in Brazil, as the operator aggressively transforms its BSS across the region. Amdocs is proving successful in implementing BSS overhauls in Latin America, as evidenced by the multiple contracts it has been awarded by Telefonica in the last 12 months.
Telefonica continues to transform its legacy BSS in Latin America
Hot on the heels of Amdocs’ announcement in mid-2014 that it would partner with Telefonica in Argentina, Chile, and Peru, the two companies have now agreed to work together in Brazil. Telefonica is Brazil’s largest fixed-line operator and owns a majority stake in Vivo, the country’s largest mobile operator. Vivo offers fixed and mobile services, as well as broadband and television to more than 95 million customers nationally. Under the deal with Telefonica, Amdocs will overhaul Vivo’s quad-play solution as part of a five-year maintenance and service agreement. The project will include replacing the company’s legacy and multi-vendor systems with Amdocs’ single BSS platform, and will span aspects of customer relationship management such as self-service, service order management, master enterprise catalog, and revenue management applications across wireline, wireless, Internet, and TV. The revamp of Vivo’s existing system will allow it to operate more efficiently, enabling it to keep up with competitors such as TIM Brasil, which is also updating its BSS.
The value of the contract was not made public, but it is clearly a good win for Amdocs as it continues to expand its relationships in Latin America. Following similar deals with Telefonica in 2014, the addition of Telefonica’s Brazilian operations shows that Amdocs has proven its competency in overhauling and standardizing BSS in the region. In addition, the opportunity to work with Telefonica in the region’s largest telecoms market could open the door for Amdocs to win similar contracts with other operators in Brazil and throughout the region.
Telefonica’s move is on trend with operators that are looking to reduce back-office complexity and maintenance costs by consolidating their vendor contracts. Multi-channel service delivery and support capabilities are top of telcos’ business challenges (see Ovum’s 2015 Trends to Watch: Telco IT report). As a result, telcos are looking to partner with vendors such as Amdocs to replace their legacy BSS systems with more manageable and cost-effective solutions. We anticipate similar partnerships between operators and BSS vendors in Latin America, as providing multi-channel service delivery and support capabilities continues to be among the top business challenges for telcos.
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