Company type | Public company |
---|---|
Nasdaq: CSGS S&P 600 component | |
Founded | 1982, Omaha, Nebraska, U.S. |
Founder | Neal Hansen and George Haddix |
Headquarters | Englewood, Colorado, U.S. |
Area served | Worldwide |
Key people | Brian Shepherd (CEO) |
Products | Business support system (BSS) Customer interaction management Digital Monetization Revenue and Customer Management Customer Experience Payments |
Revenue | $996.8 million (2020) [1] |
$126.1 million (2020) [2] | |
$82.7 million (2020) [2] | |
Total assets | $1,283 million (2020) |
Total equity | $396,662 million (2020) |
Number of employees | 6,000 - 8,000 (2022) [1] |
Website | www.csgi.com |
CSG is a multinational corporation headquartered in Englewood, Colorado. It provides business support systems (BSS) software and services, primarily to the telecommunications industry.
CSG was founded by Neal Hansen as a division of First Data in 1982. It became an independent corporation when it was acquired by CSG Holdings in 1994 for $137 million. A contract with Tele-Communications Inc. (TCI), the largest cable TV business at the time, was influential in the company's growth from $80 million in revenue in 1994 to $171 million by 1997. CSG went public in 1996. A dispute with TCI over pricing led to a $120 million arbitration settlement in 2002 with Comcast, who acquired the TCI business. The two continued to do business together and expanded their relationship in 2014. CSG made more than ten acquisitions in the 2000s, mostly of companies that sold billing, customer service, and operations software.
CSG was founded in 1982 by Neal Hansen under the name Cable Services Group (CSG) as a division of the payment processing company First Data Corporation. [3] At the time, First Data was operated by American Express, which acquired a controlling interest in the company in 1980. [4] CSG became a part of the American Express Information Services Company, which was formed in 1989. [5] The CSG group's first large-scale billing statement processing center, which prints and mails bills to consumers, was established in Omaha in 1990. [6]
Hansen left the Cable Services Group one year after it was founded to become CEO of Applied Communications, where he met George Haddix. [3] [7] Hansen and Haddix formed CSG Holdings with Morgan Stanley and Trident Investment Group in 1994, which acquired Cable Services Group that year for $137 million. [3] [8] In November 1994, Cable Services Group was renamed to CSG Systems International. [7]
CSG was the second largest billing services provider for the US cable television industry by 1994, [9] [10] serving 27 percent of cable TV subscribers. [8] However, according to The International Directory of Company Histories, its profit margins were small and the company was "still in need of a turnaround." [7] Broadcasting & Cable said CSG had lost direction and become complacent. Haddix and Hansen implemented changes at the company, [3] which prompted 350 out of 500 employees to leave the firm within a few months. [7]
The new CSG grew quickly. [6] [11] The convergence of phone, internet, on-demand movies, and other services created more complex billing arrangements between telecommunications companies and consumers, which led to more extensive use of billing services providers like CSG. [11] Professional services and international clients, which were previously not a significant portion of revenues, grew to 22 percent of revenues by the mid-1990s. [6] [7]
In order to pay off debt and raise funding for acquisitions, CSG held an initial public offering in February 1996, which valued the firm at five-fold its original acquisition price. [7] [12] CSG grew from $80 million in annual revenue when it was acquired, to $132.3 million when it went public in 1996 and $171.7 million by 1997. [6]
In the 1990s, Tele-Communications Inc. (TCI) and Time Warner scrapped efforts to create internal billing software and hired CSG International. [11] The 15-year agreement CSG signed with TCI on August 11, 1997 [13] made CSG the largest vendor in the industry [6] and was the primary contributor to its growth in the '90s. [13] By 2001, the deal was responsible for 45 percent of CSG's revenue. [14] As part of the deal, CSG also acquired TCI's internally developed software, SummiTrack, for $106 million. [11] [13] CSG's services to TCI included billing, customer management, and payment processing for TCI customers. [15] In October 1997, CSG International signed its first deal with a utilities company, mc2. [11]
At the end of 1997, CSG co-founder George Haddix retired, and former EVP Jack Pogge was appointed president and chief operating officer in his place. [16] In 1999, CSG began constructing a new bill processing center in Florida in a deal with local government, which expanded roads and provided other incentives. [17] In 2002, CSG acquired the billing software interests of Lucent Technologies for $260 million. [18] [19] The deal was estimated to increase CSG's revenues by 38 percent and its headcount by 65 percent. [20] 200 Lucent employees were laid off as a result of the acquisition. [18] An additional 100–150 CSG employees were laid off later that year in response to poor economic conditions. [21]
AT&T acquired TCI in 2000, inheriting its agreement with CSG. [14] AT&T alleged CSG was not abiding by the contract's terms to provide favorable rates. A legal dispute between the two companies began in 2001 in arbitration court. Before the dispute was resolved, AT&T Broadband was acquired by Comcast, which wanted to use its own billing and customer service vendor. In October 2002, a judge ruled that CSG owed Comcast a $120 million refund and that it had to reduce its prices. [22] [23] [24] The two companies disagreed over whether the ruling would allow Comcast to halt their agreement before the end of its term. [25] CSG and Comcast reached new agreements or extensions in March 2004 [26] and in 2008. [27] In 2014, its work with Comcast was expanded to cover all of its customer support and billing for residential services. [28]
In March 2005, co-founder Neal Hansen retired at the age of 64. Ed Nafus, prior president of the broadband services division, took his place. [29] Nafus was replaced as CEO by Peter Kalan, at the end of 2007. [30] In November 2015, it was announced that Bret Griess would be succeeding Kalan as president and CEO. [31] In August 2020, Brian Shepherd took over as president and CEO. [32]
As of December 31, 2019, CSG operates across more than 120 countries worldwide and has a total of 4,339 employees, an increase of 374 employees compared to the previous year.' [1]
Date | Company | Business | Deal size | References | |
---|---|---|---|---|---|
1980 | CSG parent company First Data acquired by American Express | Payments processing | [4] | ||
1994 | Cable Services Group acquired by CSG Holdings | Bill processing for cable TV operators | $137 million | [3] [8] | |
1996 | Bytel Limited | Customer management software | $4.7 million | [6] [33] | |
1997 | TCI's SummiTrack | Billing software | $106 million | [13] | |
1998 | US Telecom Advanced Technology Systems | Billing and customer service | $6 million | [7] [34] | |
2001 | Athene Software | Customer analytics software | Not disclosed | [35] | |
2001 | PlaNet Consulting | e-commerce consulting | Not disclosed | [36] | |
2002 | Kenan Systems assets from Lucent Technologies | Billing and customer service software | $260 million | [18] [19] | |
2002 | Integrated Customer Management Systems (ICMS), an IBM division | Customer service software | $15 million (estimated) | [37] | |
2005 | CSG Global Software & Services division (formerly Kenan) acquired by Comverse Technology | Billing and customer service software | $251 million | [38] [39] | |
2006 | Telution | Operations software | $22 million | [40] | |
2007 | Prairie Voice Services | Interactive messaging services | $39 million | [41] | |
2007 | ComTec | Bill processing | $23.5 million | [42] | |
2008 | DataProse | Direct mail and bill processing | $39 million | [43] | |
2009 | Quaero (later divested in December 2013) | Marketing services firm | $15 million | [44] [45] | |
2010 | Intec Telecom | Billing software | $392 million | [46] | |
2012 | Ascade | Wholesale billing software | $19 million | [47] | |
2013 | Volubill (certain assets) | Policy and billing management software | Not disclosed | [48] | |
2018 | Business Ink, Co. | Strategic business communications | $70 million | [49] | |
2018 | Forte Payment Systems, Inc. | Payment processor | $85 million | [50] | |
2020 | Tekzenit/Gen Design Studio | Strategy, Design Engineering and Technology Enablement | $10 million | [51] | |
2021 | Quaero 3, LLC | Customer Data Platform | Not disclosed | ||
2021 | Tango Telecom | Realtime monetisation and roaming technology | Not disclosed | [52] | |
2021 | DGIT Systems | Quote Order Bill software | Not disclosed | [53] |
CSG provides software and services for managing customer data, analyzing that data, billing, and customer service. For example, customer service representatives may use CSG systems to look up a consumer's records and add a new service, or business analysts may mine customer data for trends. [11] According to the company's website, its primary product areas are digital monetization, revenue and customer management, and customer experience. [54] CSG also prints and mails billing statements to consumers and provides call-center services. [3]
CSG originally sold two versions of its billing process outsourcing services. Under new leadership in 1994, it began developing additional software and providing consulting to in-house billing departments. [7] [10] During this period, it developed CSG Workforce Express® (now Field Service Management), a suite of software products that manage the dispatch of technicians and other logistics at customer sites. Workforce Express consists of three applications: CSG Workforce Management, CSG TechNet and CSG TechNet CE, which integrate with CSG's databases and billing systems. [7] [55] It also developed CSG Care Express, which is for creating online self-service portals for consumers to view and pay their bills online. [7] [56]
In the 1990s, CSG introduced the ACSR (Advanced Customer Service Representative) system. [7] An extension to ACSR called ProfitNow! was introduced in 2003. ProfitNow! used a consumer's account data to advise customer service representatives on the likelihood of a caller cancelling their service or buying a new product. [57] It was later turned into an online system with a user interface similar to Microsoft Windows at CSG.net. [7] CSG purchased the Kenan FX software from Lucent Technologies in 2002. Kenan software managed billing and ordering and provided middle-ware to help various customer service and billing products integrate with each other. [58] CSG NextGen was introduced for international markets, with support for multiple languages. [7] In March 2014, CSG added a cybersecurity suite to its product portfolio, under the name CSG Invotas. [59] The company released CSG Ascendon®, a digital platform for communications service providers, in March 2015. The platform uses content monetization and delivery systems without making excessive changes to existing infrastructure. [60] In November 2015, the Invotas unit was spun off into a separate entity. [61] Invotas was acquired by FireEye in a transaction that closed February 1, 2016. [62]
The company released CSG Detect, [63] a software as a service (SaaS) system, in February 2019. [64] The system is aimed at detecting and notifying telecommunications companies real-time of potential fraud in their billing process. In July 2019, [65] the company introduced CSG Field Service Management, a cloud-based advancement of its Workforce Express product suite. [66] CSG Field Service Management is part of the company's Customer Communication Management portfolio, which customers use to send over 1.5 billion messages to their end-users each year. The company announced [67] the availability of its Dispute Reconciliation Management system (DRM) in September 2019. [68] The system provides service providers with the tools and support to automate the reconciliation and dispute process. CSG Dispute Reconciliation Management is a part of the company's digital Wholesale suite of products and systems. The company introduced [69] Ascendon Communications, the industry's first software as a service (SaaS)-delivered, cloud-based business support systems (BSS) system, in October 2019. [70]
In April 2019, [71] CSG announced the opening of a technology lab to adopt blockchain technology across the wholesale business support systems (BSS) industry. [72] In May 2019, [73] the company announced the availability of its Mediation platform as a cloud-based system. [74] In June 2019, CSG and ITW Global Leaders' Forum (GLF) announced a partnership [75] to create an open blockchain ecosystem called the Communications Blockchain Network (CBN).
In March 2020, [76] Forte®, a CSG company, announced its BillPay system including omnichannel accessibility, payer-friendly navigation, biller customization, and advanced tech. [77]
CSG parent company, CSG Systems International Inc., is listed on the NASDAQ stock exchange. [36] As of 2020, its largest clients are Comcast and Charter, representing 23 and 20 percent of its revenues respectively. CSG spends approximately 13 percent of its revenue on research and development. Its revenue is about 89 percent from cloud and related services, 5 percent from software, and the remainder for ongoing technical support. 68.6 percent of revenues is from the Americas. [78] [11] [79]
Lucent Technologies, Inc. was an American multinational telecommunications equipment company headquartered in Murray Hill, New Jersey. It was established on September 30, 1996, through the divestiture of the former AT&T Technologies business unit of AT&T Corporation, which included Western Electric and Bell Labs.
Lifetime is an American basic cable channel that is part of Lifetime Entertainment Services, a subsidiary of A&E Networks, which is jointly owned by Hearst Communications and The Walt Disney Company. It features programming that is geared toward women or features women in lead roles. As of November 2023, Lifetime is available to approximately 63,000,000 pay television households in the United States-down from its 2011 peak of 100,000,000 households.
Comcast Corporation, formerly known as American Cable Systems and then Comcast Holdings, is a multinational telecommunications and media conglomerate incorporated and headquartered in Philadelphia.
Cox Communications, Inc. is an American digital cable television provider, telecommunications and home automation services. It is the third-largest cable television provider in the United States, serving approximately 6.5 million customers, including 2.9 million digital cable subscribers, 3.5 million Internet subscribers, and almost 3.2 million digital telephone subscribers, making it the seventh-largest telephone carrier in the country. Cox is headquartered at 6205 Peachtree Dunwoody Rd in Sandy Springs, Georgia, U.S., in the Atlanta metropolitan area. It is a privately owned subsidiary of Cox Enterprises.
Starz is an American premium cable and satellite television network owned by Lionsgate, and is the flagship property of parent subsidiary Starz Inc. Launched in 1994 as a multiplex service of Starz Encore, programming on Starz consists of theatrically released motion pictures and first-run original television series.
Tele-Communications, Inc. (TCI) was a cable television provider in the United States, and for most of its history was controlled by Bob Magness and John Malone.
Charter Communications, Inc., is an American telecommunications and mass media company with services branded as Spectrum. The company is headquartered in Stamford, Connecticut.
Starz Encore is an American premium television channel owned by Starz Inc. a subsidiary of Lionsgate and headquartered at the Meridian International Business Center complex in Meridian, Colorado, United States. Launched as Encore on 1 April 1991, its programming features mainly older and recent theatrically released feature films, although some of its multiplex channels also carry acquired television series. It is the sister channel of Starz and MoviePlex.
Comcast Cable Communications, LLC, doing business as Xfinity, is an American telecommunications business segment and division of the Comcast Corporation. It is used to market consumer cable television, internet, telephone, and wireless services provided by the company. The brand was first introduced in 2010; prior to that, these services were marketed primarily under the Comcast name.
Midco is a regional cable provider, providing a triple play service of cable television, Internet and telephone service for both North Dakota and South Dakota, along with much of Minnesota, and several communities in Kansas and Wisconsin. The company's business-class service also provides direct fiber-optic communications services via leased data circuits for larger companies.
Time Warner Cable, Inc. (TWC) was an American cable television company. Before it was acquired by Charter Communications on May 18, 2016, it was ranked the second largest cable company in the United States by revenue behind only Comcast, operating in 29 states. Its corporate headquarters were located in the Time Warner Center in Midtown Manhattan, New York City, with other corporate offices in Stamford, Connecticut; Charlotte, North Carolina; and Herndon, Virginia.
@Home Network was a high-speed cable Internet service provider from 1996 to 2002. It was founded by Milo Medin, cable companies Tele-Communications Inc. (TCI), Comcast, and Cox Communications, and William Randolph Hearst III, who was their first CEO, as a joint venture to produce high-speed cable Internet service through two-way television cable infrastructure. At the company's peak, it provided high-speed Internet service for 4.1 million subscribers in the United States, Canada, Japan, Australia, and the Benelux nations. The company operated as four joint ventures, three of which were international. In 1999, the company acquired Excite. In 2001 the original US company filed for bankruptcy in the US courts. During the bankruptcy process, the Japanese partner bought the @Home trademark for use in Japan and the Benelux partner bought the @Home trademark for use in Europe.
Jones Intercable was a cable television company founded by Glenn R. Jones in 1970. Jones, already a cable television veteran, had bought his first cable system in Georgetown, Colorado after taking a $400 loan on his Volkswagen. The company expanded rapidly and by 1994 it had 1.4 million subscribers. In 1995, the company was 30 percent owned by Bell Canada International.
Alcatel–Lucent S.A. was a multinational telecommunications equipment company, headquartered in Boulogne-Billancourt, Paris France. It was formed in 2006 by the merger of France-based Alcatel SA and U.S.-based Lucent Technologies, the latter being a successor of AT&T's Western Electric and a holding company of Bell Labs.
Comcast MO Group, Inc. was created by US WEST Inc., one of the original Baby Bells Regional Bell Operating Companies, acquisition of Boston-based Continental Cable and combined with its previously acquired Atlanta-based Wometco/GTC. Wometco/GTC adopted the MediaOne name a year earlier. Media One Group was acquired in 2000 by AT&T Broadband, which was subsequently acquired by Comcast in 2002.
TV Everywhere refers to a type of American subscription business model wherein access to streaming video content from a television channel requires users to "authenticate" themselves as current subscribers to the channel, via an account provided by their participating pay television provider, in order to access the content.
Genesys Cloud Services, Inc. (Genesys), formerly Genesys Telecommunications Laboratories, Inc., is an American software company that sells customer experience (CX) and call center technology to mid-sized and large businesses. It sells both cloud-based and hybrid cloud software. The company was founded in 1990 and was acquired by investment firms Permira Funds and Technology Crossover Ventures (TCV) in February 2012.
On December 3, 2009, telecommunications company Comcast announced its intent to acquire mass media company NBC Universal from General Electric (GE). The acquisition was subject to scrutiny from activists and government officials; their concerns primarily surrounded the potential effects of the vertical integration that the acquisition could create, as Comcast is also heavily involved in cable television and internet services in many media markets. The deal went through on January 28, 2011, resulting in Comcast owning 51% of the company until March 19, 2013, when GE divested its stake to give Comcast sole ownership. Through this acquisition, Comcast gained ownership of the National Broadcasting Company (NBC), the film studio Universal Pictures, cable channels such as Syfy, CNBC and MSNBC, and Universal Parks & Resorts, among other assets owned by NBC Universal. It has also integrated its own cable channels – including E! and Golf Channel – into NBC Universal. As a result of the acquisition, NBC Universal slightly changed its name to "NBCUniversal", rendered in camel case, to indicate the integration between NBC and Universal Studios.
A number of different controversies and criticisms have surrounded Comcast for various reasons over its recent history. Customers of the telecommunications company report low levels of customer satisfaction on both service and cost. Comcast has also had several customer service scandals, the most notorious of which featured a representative not allowing a customer to cancel his service. This clip went viral. Comcast has also been widely criticized, most publicly by Netflix, for its position against net neutrality, the principle that all traffic on the internet should be treated equally.
Comcast Business is a subsidiary of Comcast, which, through several iterations, has handled the sales, marketing, and delivery of internet, phone, and cable television to businesses. In 2012, Comcast Business grew by 34%, the fastest growth of any of Comcast's products in 2012, reaching $2.4 billion in revenue. In 2013, Comcast Business generated $3.2 billion in revenue, an increase of 26% over 2012 revenue.