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Leading customer experience systems and service provider, Amdocs Limited (DOX - Analyst Report) announced that it has launched a cloud-based unified communication (UC) solution that will allow telecom service providers to compete against the over-the-top (OTT) offerings.

Amdocs Unified Communication Solution allows voice, message and VoIP (Voice over Internet Protocol) services via service providers’ own branded smartphone application. The solution is accessible through Apple Inc.’s (AAPL - Analyst Report) iOS and Google Inc.’s Android platform or through a web portal.

Nowadays, most of the smartphone users have been applying different types of services to communicate. The free communication option provided by the social media sites reduces the importance of the service providers to some extent.

For quite some time now, OTT companies like Skype, Netflix Inc. (NFLX - Analyst Report) and You Tube have been offering video service directly to the customers, without collaborating with the service providers. These OTT offerings and social media websites are very popular among the consumers, but are eating up a lucrative business opportunity from the service providers.

Amdocs’ UC solution will allow the telecom carriers to overcome this challenging position. One of the unique features of this new cloud-based solution is that it brings together all the social networking and business communities into one unified address book, thereby keeping the users messaging, voice and VoIP conversation within the service providers brand. Furthermore, the UC solution offers flexibility to the operators to add advertisement and other premium features like video conferencing.

If the solution becomes popular among the customers it will be beneficial for both Amdocs and the telecom service providers. By offering the service, the carriers will enhance customer experience while increasing revenue through increased usage of capped data plans. On the other hand, the solution will create a new revenue stream for Amdocs and the company will get the opportunity to add some of the big telecom operators as its clients.

Amdocs currently carries a Zacks Rank #3 (Hold).

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