Two Israeli firms team up to fight fraud

What do you get when a leading revenue management firm teams up with leading telecom billing solutions provider?

A pretty neat fraud detection and prevention solution with an expert delivery team.

Reporting in Globes this morning, ECtel (ECTX) announced a collaboration with Amdocs (DOX) in which ECtel will team up with Amdoc’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 written before about microcap ECtel’s positioning and products and how they are helping communications providers fight fraud, combat churn, and optimize revenues. IOI’s Aaron Katsman even suggested about a year ago that a firm like HP (HPQ) may 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 pretty interesting for both firms. Amdocs can leverage its estimated 50% marketshare 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: Author’s fund holds a position in DOX and ECTX as of 6/2/08.

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