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Business Briefs

by RCR Wireless News January 23, 2006
written by RCR Wireless News January 23, 2006 Share
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Brightpoint Inc. said it will continue to be the exclusive authorized distributor for Nokia Corp. phones in the United States through 2007. The companies announced the extension of an existing agreement that sees Brightpoint deliver Nokia’s wares to carriers, mobile virtual network operators, independent agents and dealers. Brightpoint-which recently launched its own wireless retail business-said it is one of Nokia’s largest customers worldwide.

Sprint Nextel Corp. said it plans to phase out its billing relationship with Convergys Corp. and has signed a preliminary agreement with Amdocs Ltd. for a single billing and customer-care platform to serve all of its wireless subscribers. Plans call for Sprint Nextel to migrate subscribers off its legacy Precedent 2000 system this year and next year. Conversion to the Amdocs system is expected to begin once a definitive service agreement is signed. Sprint spokeswoman Sara Krueger said the carrier would alert its customers about any changes in its billing system, if such changes occur. Although she declined to give details on how Amdocs was selected, Krueger said that the evaluation process was thorough. She described the vendor switch as just another step in the integration of Sprint and Nextel. Convergys began supporting Sprint Corp.’s wireless billing needs at the carrier’s inception in 1996, while Nextel Communications Inc. deployed Amdocs’ billing and customer-care services beginning in 2000. Sprint acquired Nextel in August. Convergys noted that the Sprint Nextel contract contributed about $100 million in revenue to its Information Management Group last year. Convergys reiterated its 2006 earnings guidance of $1.07 per share or more despite the loss of the Sprint Nextel business. In a separate agreement, Sprint also has decided to extend its relationship with EDS, which has provided the company with IT services.

Private equity firm The Carlyle Group is looking to tap the Mexican market by acquiring a majority stake in bilingual call center services provider Hispanic Teleservices Corp. The stake was acquired from J.P. Morgan Partners L.L.C. and Citigroup Venture Capital International.

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