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Amdocs Survey Finds Service Providers Plan to Invest Heavily in Customer Service and Infrastructure in 2007
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Respondents foresee significant investments for IP-based technology such as VoIP and digital content offerings
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ST. LOUIS, MO - November 15, 2006 - Amdocs (NYSE: DOX), the leading provider of software and services to enable integrated customer management and the intentional customer experience TM, today released results of a survey looking at the communications industry trends in the U.S. and U.K. in 2007. Based on the responses of 200 industry decision makers in the telecom, cable and satellite industries, Amdocs forecasts service providers will significantly increase investment in customer service, network infrastructure and IP-based services, as well as build their digital content offerings.
"The survey confirms our own observations - 2007 will be characterized by the four C's -competition, consolidation, convergence and, most importantly, the customer," said Michael Matthews, chief marketing officer of Amdocs. "With ongoing market consolidation, continuing industry convergence and a highly competitive environment, service providers will place an increased focus on the customer experience in 2007. Consumers expect relevant offerings and personalized, responsive service, and providers indicate a significant increase in investments to address this need."
Increased Customer Focus
The survey results indicate that service providers are expected to increase their investment in customer service and network infrastructure, which will improve the customer experience:
- Nearly 67 percent of respondents plan to increase their spending on customer service enhancements over the next year, with the average investment increase projected at 31 percent.
- Service providers are planning to put more money into network infrastructure, with the average investment increase expected to be 33 percent.
Jump in Investment for IP-Based Services
Additional Amdocs survey predictions indicate that service providers anticipate continuing to roll out Internet Protocol or IP-based services. In the next year, according to survey respondents:
- IPTV, digital TV, video content and VoIP (voice over IP) are expected to be the top products and services for 2007, with spending in network infrastructure for these three areas projected to increase significantly -- by 77 percent, 81 percent, 71 percent and 76 percent, respectively.
Projected Acquisitions
Survey findings also highlight an expected increase in merger and acquisition activity among service providers to bolster their digital offerings, expand market share in a slow growing marketplace and gain the economy of scale advantages.
One third of those surveyed believe that their company will merge with another in the next year.
Among the different types of service providers, broadband cable companies will be the most likely to merge, at 53 percent. However, none of the cable companies projected being acquired by another entity. "We expect an increase in M&A activity among service providers and particularly among cable providers," added Matthews. "The goal of all service providers is to build out a full suite of IP-based services. This is an area in which size and scale will greatly contribute to determining the winners among service providers."
Amdocs commissioned Frost & Sullivan to conduct an international survey in August, 2006. Survey respondents included 200 decision makers from Tier 1 and Tier 2 service providers in the U.S., U.K. and Canada and included telecommunications companies, cable multiple service operators (MSOs), satellite TV providers, wireless operators, mobile virtual network operators (MVNOs), VoIP providers, and Internet service providers.
About Amdocs
Amdocs combines innovative software and services with deep business knowledge to accelerate implementation of integrated customer management by the world's leading service providers. By delivering a comprehensive portfolio of software and services that spans the customer lifecycle, Amdocs enables service companies to deliver an intentional customer experienceTM, which results in stronger, more profitable customer relationships. Service providers also benefit from a rapid return on investment, lower total cost of ownership and improved operational efficiencies. A global company with revenue of $2.48 billion in fiscal 2006, Amdocs has over 16,000 employees and serves customers in more than 50 countries around the world. For more information, visit Amdocs at www.amdocs.com.
Amdocs Forward-Looking Statement
This press release includes information that constitutes forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995, including statements about Amdocs' growth and business results in future quarters. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that our expectations will be obtained or that any deviations will not be material. Such statements involve risks and uncertainties that may cause future results to differ from those anticipated. These risks include, but are not limited to, the effects of general economic conditions, Amdocs' ability to grow in the business segments it serves, adverse effects of market competition, rapid technological shifts that may render the Company's products and services obsolete, potential loss of a major customer, our ability to develop long-term relationships with our customers, and risks associated with operating businesses in the international market. Amdocs may elect to update these forward-looking statements at some point in the future, however the Company specifically disclaims any obligation to do so. These and other risks are discussed at greater length in the Company's filings with the Securities and Exchange Commission, including in our Annual Report on Form 20-F for the fiscal year ended September 30, 2005, filed on December 28, 2005 and our quarterly 6-K furnished on February 15, May 15 and August15, 2006.
Media Contacts:
Amdocs
Katie Pagliara
Access Communications for Amdocs
Tel: +1-917-522-3531
E-Mail: kpagliara@accesspr.com
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