SPIT Watch: Telco 2.0 Tools & M&A

News Analysis Ray Le Maistre, Editor-in-Chief 3/26/2010

The TM Forum has stepped up its efforts to help service providers transform into lean, mean, Web-savvy machines with the launch of a Service Provider Information Technology (SPIT) architecture that operators can use to help formulate a next-generation service strategy.

Elsewhere, Amdocs Ltd. (NYSE: DOX) has opened its wallet again, while other SPIT players have been striking new partnerships, talking up their recent successes, and furthering their strategies.

(And in case you're wondering what this SPIT stuff is about, check out The SPIT Manifesto.)

Frameworx for new networx
The TM Forum has realized for quite some time that the traditional telecom operators of this world are going to need some robust encouragement if they're to adapt to the even more competitive world of the Telco 2.0 environment, where the integration of Web services into the communications mix, and the cutting of costs, are critical to survival.

To that end, the Forum has been trying hard to educate its carrier members by exposing them to the potential of Web-based apps collaboration and the potential of so-called "cloud" services. (See TM Forum Seeks Enterprise Help With the Cloud, Carriers: Be Brave, or Die, Get On With It!, and OSS Crew Tackles Costs, Service Creation.)

Its latest effort is Frameworx, an "integrated business architecture blueprint" that aims to provide the service provider community with a recognized, standardized approach to migrate from existing SPIT assets to next-generation systems and procedures that, in theory, will reduce costs, increase operational efficiencies, and help operators work more closely with external partners, such as applications developers and content owners. (See TM Forum Unveils Frameworx.)

Basically, the Forum is laying out a ready-made guide to help carriers help themselves stay in business.

The architecture, which is set to be complete by June this year, comprises four frameworks, focused on Business Process, Information, Application, and Integration. Find out more here, and get an early overview, and deeper dive into Frameworx here.

Amdocs buys again
Amdocs, it seems, can hardly keep its hands out of its pockets.

Having made a strategic application server acquisition a few months back to further its service delivery platform (SDP) strategy, it has now splashed out $104 million on mobile payments and messaging aggregator MX Telecom Ltd. , which it is folding into its existing OpenMarket mobile transaction hub. (See Amdocs Buys MX Telecom and Amdocs Rallies, Fills SDP Hole .)

"This strategic acquisition expands OpenMarket's global footprint and substantially increases our market leadership in the rapidly growing mobile payments market that will extend well beyond messaging in the coming years," stated Jay Emmet, OpenMarket's general manager, in the Amdocs announcement.

Amdocs says the acquisition should add to its bottom line (before one-time costs) this financial year (ending September), though it's expecting to "incur a one-time acquisition-related expense in the quarter ending March 31, 2010 to account for certain costs related to the acquisition."

Other news of note from the SPIT world includes:

— Ray Le Maistre, International Managing Editor, Light Reading

Interested in learning more on this topic? Then come to Three OSS Imperatives: Customer, Cost & Cloud, a Light Reading Virtual Event for service providers that need to understand how to adapt and transform their operational support systems to put customers first, drive out cost, and support new cloud-based services. To take place on Tuesday, April 20, from 9 a.m. to 5 p.m. Eastern Time, access is free. For more information, or to register, click here.