Cisco Systems Inc.
) 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
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
), both of which have a Zacks Rank #1 (Strong Buy).
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