Amdocs acquires Helix Service Assurance to close the loop for 5G-era networks

Telecom executives must go all in on 5G, which brings gigabit data transfer speed and extremely low latency, allowing telecommunications firms to take full advantage of delivering various services, including real-time internet of things (IoT) operating systems, cloud-native applications, and high-definition video conferencing. However, to monetize these capabilities, telecommunications firms must provide assurance of network availability, coverage, and service resolution.

In May 2023, Amdocs, a leading software and service provider for the communication and media industry, acquired the service assurance business of TEOCO, a former partner in various opportunities within the assurance domain, for approximately US $90 million. The Helix Service Assurance Suite is a proven solution allowing Amdocs to offer a single point of engagement with customers for 5G service and network automation needs.

With its strategic acquisition, Amdocs aims to become a dominant force in this booming industry

Telecom operators plan to use network slicing to offer customers differentiated services that require premium pricing. This shift toward personalized and sophisticated services demands assurance mechanisms and their integration with orchestration platforms to ensure consistent, high-quality customer experiences. To achieve this, telco providers must embrace new digital technologies, integrating hyper-personalized services using data, analytics, IoT, and AI (artificial intelligence). Delivering quality customer experience within a complex landscape of cloud-enabled hybrid networks also demands advanced AI-driven assurance solutions to justify charging premium prices to clients.

Recent market research by Benzinga shows that the global telecom assurance market is valued at approximately US $7 billion and is expected to grow to US $12 billion by 2028. Recognizing this trend, Amdocs saw an opportunity to bolster its offerings by acquiring TEOCO’s Service Assurance Business.

Amdocs made a wise decision to acquire a partner with a strong industry presence

5G is about intelligent networks. Understanding this, Amdocs has moved to enhance its product and service offerings by adopting digital technologies such as automation, AI, and IoT. Furthermore, through this acquisition of TEOCO assets, Amdocs augments its Intelligent Networking Suite product offerings. Adding assurance capabilities into its suite simplifies business for telecommunications firms and their move toward 5G-enabled CloudRAN (cloud-native radio access network) for network management, optimization, design, orchestration, and service quality.

Offering the suite is important to Amdocs customers, as with 5G gigabit speeds and low latency, carriers are transitioning from data access and usage to end-to-end service orchestration (E2ESO). This transition is the most significant change since these same carriers transitioned from minute-based billing to data with the advent of the iPhone more than a decade ago. To fully provision and monetize this new model, a carrier must be able to monitor network services across transport networks like cable, fiber, pre-5G wireless, and 5G. Moreover, they must monitor network functionality and delivery, including access, availability, and assurance across data-intensive applications, cloud-native operating systems, and edge computing devices.

Assurance tools like the Helix Service Assurance Suite are crucial to automating service performance measurement by transport type, access type, and user type. With the sophistication of 5G networks, automation is the magic sauce here, as machines will need to adjust themselves. This sophistication will be critical to how hyperscalers and carriers collaborate to deliver services over self-organizing networks.

With this acquisition and the seamless integration of the Helix Service Assurance Service suite within the Amdocs Intelligent Networking Suite (see Exhibit 1), Amdocs has equipped itself to meet the growing demand for AI-powered, dynamic service management.

Exhibit 1: Service assurance is a critical part of providing complex service performance needed for consistent customer experience across the carriers’ offerings

Source: Amdocs, 2023

The Helix Service Assurance Suite, as outlined in Exhibit 2, caters to the customers’ needs, offering observability, remediation, and automation to optimize CloudRAN, traditional RAN, and network orchestration.

Exhibit 2: Amdocs Helix Service Assurance Suite

The Bottom Line: Amdocs’ acquisition of TEOCO’s Service Assurance business completes its loop of service and network automation offerings, cementing its position in the telco industry.

Amdocs closed a gap in its service offerings with the Helix Service Assurance Suite when it added the partner’s product into its service and networking automation products. The suite allows Amdocs to provide telecommunications providers with distinctive, end-to-end service orchestration offerings. 5G adoption continues to grow in private and public networks, and enterprises and technology companies look to leverage it for premium and mission-critical services. With the Helix Service Assurance Suite, Amdocs can assure carriers they can extract premium pricing as they roll out CloudRAN services and future networks.