In January 2000, Subex acquired IVth Generation Inc, a company operating out of New Jersey, USA, and in May 2001 it acquired the business assets of Magardi Inc. As per studies conducted by the Phillips group and Deloitte & Touche, the key challenges faced by telecom service providers worldwide is revenue maximisation through fraud management, data reconciliation, billing verification and revenue assurance.

This market is estimated at around $300 million per year. This segment is quite an unexplored one, considering the current penetration level at a mere 15 per cent of the various networks installed worldwide (approximately 1,500 networks).

Of the major players that offer solutions in this area are Subex Systems, HP, Ericsson, Alcatel, Cerebrus (ex-Nortel), ECtel, Lightbridge, Sotas, Connexn Technologies and Vibrant Solutions.

Subex has gained leadership position in the areas of fraud management and revenue assurance systems. Now the company is trying to increase its contract ticket size, which involves targeting larger operators and increasing the revenue per license.