ALEXANDRIA, Minn.-Rural Cellular Corp. reported that its customer relationship management and billing managed services agreement with Amdocs Software Systems Ltd. initiated in early 2004 was mutually terminated late last week.
Rural Cellular said in a Securities and Exchange Commission filing that the termination was based on its decision that the proposed systems would not meet its requirements given that Amdocs focus “has become more oriented to national wireless providers. Under these circumstances, it was determined that the systems would not have been cost-effective to adapt and maintain over the long term.”
Rural Cellular noted that Amdocs was to have adapted the proprietary systems to the carrier’s needs, provide support services to migrate Rural Cellular’s existing subscriber base and provide ongoing services for the operation for seven years. Approximately 75,000 GSM customers have been served by a transitional service since earlier this year, which Rural Cellular said it expects to use until a replacement billing system becomes available.
Rural Cellular added that it expects to take an $8 million charge related to the agreement termination during the second quarter.
