Amdocs launches products for digital ads and retail
NEW YORK (Reuters) -
Amdocs (DOX.N), a software maker long
known for its billing technologies sold to telecoms providers,
is launching on Wednesday new products designed to help its
clients reap more sales from new digital businesses.
The products support tasks such as search and digital
advertising, Web-based retailing and a more sophisticated way
of interacting with customers.
The launch comes as telecoms companies increasingly rely on
a combination of Internet, wireless and even video to offset
declines in traditional phone use. In these markets, Amdocs
customers have become exposed to more competition.
"Service providers really recognize the need to transform
from being utilities ... to purveyors of a digital lifestyle,"
Mike Couture, Amdocs vice president of marketing, told Reuters.
"They are really facing some threats from applications
providers, like Google (GOOG.O), who are vying for ownership of
the customer."
Amdocs clients include the largest U.S. telecoms players,
and their new rivals in the cable industry, from AT&T Inc (T.N)
and Verizon Communications (VZ.N) to Comcast Corp (CMCSA.O).
The Amdocs products mark new territory for the company,
even if similar ones have been developed by Internet media and
retail companies.
"In the past, telecoms was really driven by the network and
you really didn't think of the customer," said Shira Levine, a
senior analyst at industry researcher IDC. "But they need to
start thinking this way ... otherwise they risk losing
(customers)."
In October, Amdocs forecast revenue of $3.05 billion to
$3.15 billion for fiscal 2008, at the lower end of analyst
forecasts.
Its shares are down 4.3 percent this year and lost 7.6
percent in the last 12 months, versus declines of nearly 6
percent and 3.5 percent, respectively, for the Standard &
Poor's 500 Index (.SPX).
The Amdocs advertising component lets service providers use
the data they have about customers and serve up ads that
specifically relate to their known behavior, across any of
three screens -- the mobile phone, the computer and the
television set.
A digital commerce function allows service providers to
recommend customers new products not unlike the user
suggestions offered by Web retailer Amazon.com (AMZN.O).
Other technologies included in the launch help customer
service workers keep better track of the different voice or
video plans a consumer may have signed up for or shown interest
in, whether they did so on a phone or via the Web, as well as
allow the service provider to create tailored packages of
digital entertainment.
"We're already making sales," said Couture.
He does not expect concerns that the U.S. economy would
fall into a recession this year would immediately hurt Amdocs'
ability to sell the new technologies.
