ECtel and Amdocs Team Up to Fight Fraud

What do you get when a leading revenue management firm teams up with leading telecom billing solutions provider? You get a neat fraud detection and prevention solution with an expert delivery team.

According to a report in this morning's Globes, ECtel (ECTX) announced a collaboration with Amdocs (DOX) in which ECtel will team up with Amdocs’s system integration services to market its FraudView product suite. The software allows advanced detection of fraudulent activity as part of customer acquisition, credit risk management, and new subscriber evaluation processes.

We’ve previously written about microcap ECtel’s positioning and products, including how it is helping communications providers fight fraud, combat churn, and optimize revenues. About a year ago, IOI’s Aaron Katsman even suggested that a firm like HP (HPQ) might find ECtel a compelling way to penetrate the fraud prevention market. We’ve seen ECTX land a couple of Chinese deals recently, building upon its relationship with China Mobile (CHL). As the telecommunication industry continues to consolidate and mature in China, ECtel could potentially see more activity coming from CHL’s competitors.

Amdocs continues to invest in its business by rounding off its billing product for cable providers. This tie-up sounds interesting for both firms. Amdocs can leverage its estimated 50% market share in the communications billing market and introduce more sophisticated fraud tools, like the ones developed by ECtel. In a world where security and customer retention are in focus, DOX and ECTX looks like an interesting partnership.

Disclosure: The author’s fund holds a position in DOX and ECTX as of June 2, 2008.