Cisco Systems Inc. (CSCO - Analyst Report) announced that MetroPCS Communications, Inc. has chosen its Carrier-Grade Internet Protocol Version 6 (CGv6) Solution for the smooth transition of its mobile Internet network to the latest version of Internet Protocol (IP).
Richardson, Texas based MetroPCS Communications, Inc. was established in 1994 as General Wireless, Inc. by Roger D. Linquist. It is the fifth largest mobile telecommunications network in the U.S. with 9.5 million subscribers as of Jan 2012. It launched its 3G network in 2009 and LTE network in 2010.
Cisco completed the network validation work and took care of program management, tools, processes and people, thus enabling MetroPCS to launch 4G LTE services on IPv6 faster.
Currently, smart devices are in great demand among consumers and are used for multiple purposes other than calling (listening to music, using maps to move around, using social networking sites like Facebook and Twitter to chat, and others). All these functions require good Internet speed. Network carriers are therefore prioritizing the upgrades to their technology, as slow Internet speed could increase customer churn.
According to a report by IDC, smartphone shipments will grow 95.9% from 2012 through 2016 to touch 1.405 billion units. Tablets are expected to grow even faster (131.2%) during this period touching 282.7 million units. The solid growth prospects in these two markets may enable MetroPCS to meet rising challenges and provide better services to its customers. On the other hand, it may benefit Cisco if other network providers also upgrade to the latest technology to meet customer demand.
Cisco’s revenues in the second quarter of fiscal 2013 increased 5.2% year over year and 1.7% sequentially to $12.1 billion. Products (78.0% of total revenue) were up 3.3% year over year to $9.4 billion. Services (22.0% of total revenue) jumped 12.5% year over year to $2.7 billion.
Cisco carries a Zacks Rank #4 (Sell). Other companies in the sector that also look attractive include Hewlett Packard Company (HPQ - Analyst Report) and Silicom Ltd. (SILC), both of which have a Zacks Rank #1 (Strong Buy).