Subex awarded contract by MTN

Subex Ltd. has been awarded a five-year deal to deploy its industry leading Revenue Operations Centre (ROC) Fraud Management and Revenue Assurance solutions across 14 networks of the MTN Group.

Subex will provide ROC Fraud Management and Revenue Assurance solutions to support MTN’s networks as part of a turn-key model, along with hardware vendors. The solutions will be deployed individually in each of the  operating countries, with a central program office from Subex, which will work with the MTN Group and the individual countries to roll out the systems in phases across the 14 networks.

Nazir Patel, Group CFO, MTN Group said, “We were looking for a partner to collaborate with us long term, to address our revenue fortification requirements. Subex was selected for this deployment after a highly competitive bidding process”.

Sudeesh Yezhuvath, COO, Subex Ltd. said, “We are pleased to have been chosen by MTN to deploy our industry-defining ROC Fraud Management and ROC Revenue Assurance solutions. We won the contract because of our thought leadership and our unique ability to address the total revenue chain through the bouquet of our ROC offerings. We are seeing more of our customers opting for multiple Subex ROC solutions, which is a testament to the depth and quality of our ROC portfolio.”

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The Rise and Fall of Subex Founder Subash Menon

Subex founder’s sheer ambition triggered the company’s meteoric rise and its catastrophic fall


DOWN BUT NOT OUT Subex founder and former chairman Subash Menon accepts his wrong call on Syndesis but defends his strategy of inorganic growth

On September 27, 2012, two decades after he started the company and one day before his investors were to vote to extend his term as managing director and CEO for another five years, Subash Menon resigned from Subex. He had already stepped down as chairman a few months ago.

It’s normal to reward longtime employees of a company when they leave; and in this case, Menon was the company’s founder too. Yet, he wasn’t eligible for either the separation or the notice period amounts in his employment contract. Subex’s board had in July amended those contracts to first remove the separation payment, and then to prevent a notice period if Menon resigned on his own.

Within a week, Ramanathan J, head of the company’s finance function, resigned. Sudheesh Yezhuvath, Menon’s brother and the company’s COO, was removed. 

The board that took these decisions was mostly new. Anil Singhvi, a former CEO of cement maker Gujarat Ambuja and founder of investment advisory firm Institutional Investor Advisory Services (IIAS), and Sanjeev Aga, former managing director of Idea Cellular, joined the board in April 2011 as independent directors. Both Singhvi and Aga are part of a new tribe of shareholder activists-cum-advisors, who are seen as a minority shareholder bulwark against the whims and fancies of promoters.

Two more board members were added this July when Surjeet Singh, former CFO of Patni, and Karthikeyan Muthuswamy, an investment advisor to Elliott Capital, were brought in as nominee directors. 

On October 5, Singh was elected as Subex’s new CEO. He had left iGate Patni (now iGate Corp) in May 2011, reportedly after being denied the CFO’s role. 

And so it happened that Subash Menon—entrepreneur, risk-taker, history buff and socialist-communist—found himself surgically separated from the Rs 477-crore Subex, a company he started with a loan of Rs 20,000 from an ex-employer in 1992. 

His shareholding is down to just over 5 percent in Subex and the five-year-long rope his investors had given him has finally run out. Like with many entrepreneurs, his sheer ambition was simultaneously the reason for Subex’s meteoric rise as well as its catastrophic fall. 

But if he’s dejected, he doesn’t show it. “The company is on a strong footing and it can now go back to its earlier rate of growth. To me, it’s a job done to a large extent,” says Menon.

The Perfect Storm

In the 1990s and 2000s, Subex challenged the conventional wisdom about creating software in India. It sold branded software licences instead of selling code by the kilo (or KLOC—kilo lines of code), ploughed back cash and equity liberally for growth instead of hoarding every penny of profit, and aggressively acquired foreign companies. 

From 2000, its revenues grew at a compounded annual rate of 33 percent to reach $54.8 million by 2007. 

Then, in January 2007, Subex bought Canadian telecom software company Syndesis, its seventh acquisition, for $165 million in cash. You could say that was the beginning of the end of Subex’s dream run. 

It had first approached Syndesis for a merger in late 2005, but the company was not interested in selling. Ironically, in 2006, just a year later, Syndesis approached Subex offering itself for sale ostensibly because its investors—a clutch of venture capital firms, including the likes of Sequoia and Greylock—wanted an exit. But the deal would have to be done in cash, the entire 100 percent of it. 

That was the first mistake because, in the past, Subex had done most major acquisitions using its own stock instead of cash.

For the first time in its history, Subex acquired a company for its IP instead of its customers. But because Subex’s expertise lay in a different area (revenue maximisation) than Syndesis’ (service assurance), it was unable to either fully understand the complexity of the latter’s software or poke holes in its rosy sales projections. That was the second mistake.

“Syndesis had negative margins. Venture-backed companies are not very profit-oriented. Their view is to get revenue up, achieve capital gains, sell and get out,” said Menon to Forbes India in an interview in September 2008.

Subex completes FCCBs Exchange Offer


Subex has successfully completed the FCCB exchange offer post approval from about 97% of the bond holders in value. The Company has issued new secured bonds worth US$127.721 million with a maturity period due July 2017 with a conversion price of Rs. 22.79 per share, at an interest rate of 5.70%, of which Bonds worth US$36.321 million will be mandatorily converted into equity shares at the aforesaid conversion price of Rs.22.79 per share. Also, the maturity period of the un-exchanged existing bonds worth US$3.40 million now stands extended to March 2017. 

Moreover, Subex’s founder and promoter, Subash Menon, has stepped down as Chairman and will continue to spearhead the company in the capacity of Managing Director and CEO. Additionally, Surjeet Singh and Karthikeyan Muthuswamy have joined the Company’s board as additional Directors, being nominees of the holders of the new bond holders.

Subash Menon, Founder, Managing Director & CEO, Subex Limited, said, “I am pleased to state that we have successfully, and in time, concluded the FCCBs exchange offer, thereby putting all concerns about the financial stability of the Company to rest. We will continue to work hard to provide the best-in-class solutions to our customers and sustain our market leadership in BSS. With the increasing traction for our industry-leading Revenue Operations Centre (ROC) and Managed Services offering and the non-linearity in the business, we are confident of better times ahead.”

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Subex and Idea Cellular awarded the Global Telecoms Business Innovations Awards 2012

Subex awarded prestigious industry award second year in a row in the ‘Business Service Innovation’ category

BANGALORE, INDIA– Subex Ltd, a leading global provider of Business Support Systems (BSS) for Communications Service Providers (CSPs), announced that it has been awarded the Global Telecoms Business Innovations Awards 2012 along with Idea Cellular in the ‘Business Service Innovation’category for Fraud Management in a Managed Services format.


Last year, Subex had won the award in the Fraud Management Innovation category along with Swisscom. The Global Telecoms Business Innovation Awards have been in existence since 2007 and recognizes innovations that contribute to improved business efficiencies in the telecoms world.


Subex and Idea entered into a 3 years strategic partnership program with the objective of improving business and operational efficiencies through Subex’s Managed Services. The engagement helped Idea focus on their core business operations while Subex monitored and controlled elements and instances of fraud.


Sudeesh Yezhuvath, Chief Operating Officer & Wholetime Director, Subex, said, “This is a matter of great pride and honour for us to be awarded the Global Telecoms Business Innovation Awards second year in a row. This reinforces our strong commitment towards our customers and is testament of our core value of continuous innovation to keep up with the changing needs of the industry.”


Subex’s industry leading ROC Fraud Management solution was chosen in a Managed Services format by IDEA for Postpaid and Roaming earlier in the year. This was a fully outsourced Managed Services deal where Subex ran the operator’s entire fraud management operations.

- Ends -

About Subex Limited

Subex Limited is a leading global provider of Business Support Systems (BSS) that empowers communications service providers (CSPs) to achieve competitive advantage through Business Optimization - thereby enabling them to improve their operational efficiency to deliver enhanced service experiences to subscribers.

The company pioneered the concept of a Revenue Operations Center (ROC®) – a centralized approach that sustains profitable growth and financial health through coordinated operational control. Subex’s product portfolio powers the ROC and its best-in-class solutions enable revenue assurance, fraud management, data integrity management, cost management and interconnect / inter-party settlement. Subex also offers a scalable Managed Services program and has been the market leader in Revenue Assurance and Fraud Management according to Gartner (2010 & 2011). Subex has also been enjoying market leadership in Business Optimization for four consecutive years according to Analysys Mason (2007, 2008, 2009 & 2010). Subex has been awarded the Global Telecoms Business Innovation Award for 2011 along with Swisscom for industry’s first successful Risk Reward Share model for fraud management.

Subex’s customers include 28 of top 50 operators* and 33 of the world’s 50 biggest# telecommunications service providers worldwide. The company has more than 300 installations across 70 countries.

*GTB Carrier Guide, 2011

#Forbes’ Global 2000 list, 2011

For more information please visit 

For further information please contact: 
Rajiv Menon at Perfect Relations

Tel: +91 9845251133


Press contact            Mansi Chouhan 
                                    Manager – Corporate Communications 
                                    +91 80 6659 4157

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