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Amdocs Limited DOX recently announced that French multinational telecommunication company, Orange, has selected it to provide business support systems (“BSS”) for an experimental 5G cloud network in Europe. The project, which will run for two years, has already been launched in Lannion, France in July.
It is worth mentioning that Orange’s automated network system is Europe’s first 5G Stand Alone (“SA”) cloud network. It aims to build 5G network solutions utilizing Open RAN (Radio Access Network) technology rather than traditional closed networks.
Orange plans to improve its customer experience, monetization and work on its delivery services through the collaboration with Amdocs. Both the companies believe that together they will be able to serve over hundreds of customers by the end of this year.
Amdocs will be utilizing Amazon’s AMZN web services platform, Amazon Web Services (“AWS”), to infuse its solutions with agility, scalability, and cloud-native dynamic framework. This project will aid the company in strengthening its customer retention rate and provide a boost to revenue growth. In the third quarter, it reported revenue growth of 4%, with Europe accounting for around 15% of its quarterly revenues.
Further, teaming up with Orange will enhance the company’s operational efficiency and provide it a competitive edge. Amdocs currently faces stiff competition in the BSS portfolio from bigwigs like Salesforce CRM, Oracle ORCL and SAP.
Amdocs Limited Price and Consensus
Amdocs Limited price-consensus-chart | Amdocs Limited Quote
As more and more communication service providers worldwide are increasingly adapting to 5G network and services, Amdocs continues to expand its global client base by signing long-term contracts and collaborating with major telecom industry players. To this end, last year, it acquired Openet for facilitating its clients’ technological transition into the 5G environment. This, in turn, expanded its 5G global footprint.
Recent deal wins, including the one with Veon and a Tier 1 service provider in Spain, are driving revenue growth. Extension of managed services agreements with several customers, including Vodafone Hungary, and partnerships with Capita plc to provide digital business systems are acting as tailwinds as well.
Such deals are expected to keep driving the company’s top line.
Amdocs currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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