- Amdocs’ $200M Matrixx deal is big for OSS/BSS consolidation and standalone 5G growth
- The vendor wants to be a one-stop-shop for the telco back office, said analyst Jack Gold
- OSS/BSS vendors need to step up to help telcos with ROI, according to Gartner
As news of telecom and tech M&A persists, Amdocs scooped up Matrixx for $200 million without so much as a press release. But the move is far from low-key in terms of consolidation and monetization opportunities, said analysts.
Headquartered in California, Matrixx sells billing and charging software for major operators such as AT&T, Orange, Swisscom, Telefonica and Telstra. Given Amdocs already acquired charging company Openet in 2020 for $180 million, Matrixx is more indicative of “consolidation and customer acquisition than a purely technology purchase,” J.Gold Associates Principal Jack Gold told Fierce.
“Amdocs wants to be a one source for everything player in the telco back office space, and acquiring more companies that have complimentary customer base is a way to expand their market presence,” he said.
Indeed, Amdocs has steadily beefed up its portfolio over the years. Prior to Matrixx, the company last year bought Czech data science firm Profinit as well as TEOCO’s service assurance business in 2023.
Other OSS/BSS players are also riding the consolidation wave. NEC, parent company of Netcracker, announced in October it will acquire CSG Systems for $2.9 billion. Qvantel this month closed its acquisition of Optiva, and that combined company now serves more than 70 operators in over 40 countries.
“I also suspect this is not the end of market consolidation, particularly as we start moving to a 6G world powered by AI at both the front end and back end of the telco value chain,” Gold said.
Justin van der Lande, research director at Analysys Mason, said the Matrixx deal “reinforces Amdocs’ position as the largest monetization vendor,” noting Matrixx’s tech competes directly with Amdocs’ billing, charging and invoice services.
It’s a defensive play from Amdocs, van der Lande added, preventing competitors from grabbing Matrixx and therefore “safeguarding Amdocs’ market share.”
More growth from 5G SA, MVNOs
Ragupathy Vellappa, program manager at Capgemini and former IDC analyst, said Matrixx “strengthens Amdocs’ core capabilities” as operators ramp their 5G standalone (SA) deployments.
The big three U.S. carriers have all officially deployed 5G SA nationwide. On a global scale, Dell’Oro said 71 mobile operators have launched 5G SA for consumers, including five new launches in 2025.
“As 5G SA moves from trials to real deployment, monetization models like network slicing and API-driven services demand real-time, cloud-native charging,” Vellappa said.
He also pointed to mobile virtual network operators (MVNOs) as a way Amdocs can accelerate growth.
Amdocs already has numerous MVNO customers, notably both Charter and Comcast, Consumer Cellular and Rizz Wireless. Matrixx meanwhile works with MVNOs like U.K’s iD Mobile, Switzerland’s M-Budget and telecom-as-a-service providers like Oxio.
“MVNOs are emerging as mainstream growth engines, growing 3.6% annually vs. 1.6% for the broader mobile market” from 2023-2029, Vellappa wrote, referring to projections from Omdia.
Gartner: OSS/BSS vendors must double down on telco ROI
As operators further integrate AI in the back office, OSS/BSS vendors must ensure offerings can actually bring monetary value and are efficient enough to solve telco problems, according to Gartner Senior Director Analyst Susan Welsh de Grimaldo.
“There is an AI race heating up in OSS/BSS, and in order to win, vendors need to focus on delivering value on what CSPs really care about: driving efficiencies and monetization,” she told Fierce.
Many operators “continue to struggle” with OSS/BSS modernization, De Grimaldo noted, as they seek to introduce automation amid challenges with multiple legacy solutions and data management.
“Shiny new AI-centric OSS/BSS only succeed if they can show ROI and solve for these CSP needs,” she said.