Amdocs wins eight-year Sprint Nextel contract

Following the announcement, shares in Amdocs rose 2.2% to $31.07 in morning trade on the NYSE. (photo credit: )
(photo credit: )
Amdocs has won a contract from Sprint Nextel Corp., to provide a single billing and customer care platform for the US telecommunications giant, gaining favor over competitor Convergys for the lucrative deal. The companies did not disclose financial details of the eight-year agreement. "We have selected Amdocs to support Sprint Nextel because of its extensive experience in the industry and their ability to adapt to our customers' changing needs," said Dick LeFave, chief information officer for Sprint Nextel. "Amdocs will continue to provide Sprint Nextel with a robust billing solution and will enhance our customer experience at critical touch points such as customer care, sales and billing." Under the agreement, Amdocs' platform would provide Sprint Nextel customer care representatives with real-time access to account information for all subscribers on both the Sprint PCS and Nextel networks. Sprint Nextel said it expects to start making the conversion during 2006 after a definitive agreement has been signed with Amdocs. It expects the conversion to be complete in 2007. Following the announcement, shares in Amdocs rose 2.2 percent to $31.07 in morning trade on the New York Stock Exchange. The contract, to provide the billing software application for Sprint Nextel's 46.5 million wireless subscribers, has been the subject of much speculation in the market after Sprint and Nextel agreed to merge in December 2004. While Nextel has been a client of Amdocs since 2000, Sprint had, until now, been working with its biggest competitor Convergys since 1996. The contracts were big revenue winners for both companies and the announcement was expected to have an effect on future earnings. Amdocs was scheduled to release its end of year results after press time.