Alcatel offloads telecoms fraud biz to India

Subex Systems coughs up $3m

Alcatel this week sold its telecoms fraud management business to Indian telecoms software firm Subex Systems for $3m cash.

With the acquisition, Subex leapfrogs Hewlett-Packard to become the world's largest supplier fraud management software to telecomms carriers, at least in terms of number of customers and installations. The deal adds 25 new clients (including Tiscali Italy, Vodafone Ireland, Colt UK and Energis UK) to Subex's existing customer base of 39.

Under the agreement, Alcatel will become a reseller of Subex Systems's fraud management and revenue assurance to telcos worldwide. Subex will be retaining an unspecified number of the 50 workers in Alcatel's fraud management group. These workers will be asked to decamp to London, where Subex plans to set up a new European sales and support office by September. It's unclear how many jobs will go to India as a result of the deal. Neither Alcatel nor Subex could be reached for immediate comment on this aspect of the agreement.

Post acquisition, Subex will merge the functionalities of Alcatel's Fraud Management technology with that of our own, Ranger software and also take over the support of Alcatel FMG's global clientele.

According to the US-based Communications Fraud Control Association's (CFCA) survey in 2003, annual worldwide telecom fraud losses are estimated to range from between $35-40bn. Other studies have revealed that telecom operators lose as much as 10 per cent of their potential revenue with fraud being one of the main culprits. Subex Ranger and RevMax technology is designed to help operators to identify and stem these losses. ®

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