Inc. ( PCS ) has collaborated
with Ericsson ( ERIC ) to upgrade its
Evolved Packet Core (EPC) network that supports services such as
Voice over LTE (VoLTE) and Rich Communication Services (RCS).
The network enhancement will enable the company to improve its
service quality and attract more customers. Previously,
MetroPCS joined with Ericsson to drive the first launch of 4G LTE
services in the U.S.
MetroPCS operates as a leading unlimited prepaid wireless
broadband service provider in the U.S. with market penetration of
approximately 9%. The company continues to benefit from the mobile
broadband momentum success of "Wireless for All" service plans that
foster continued financial and subscriber growth. MetroPCS focuses
on expanding its footprint in the 4G LTE market and launched "4G
LTE for All" program in Aug 2012.
The advanced 4G LTE network, cost effective 4G devices and
affordable 4G service plans are expected to remain the key drivers
for promoting MetroPCS' 4G LTE for All program. Currently,
the company has 1.1 million 4G subscribers, which account for 12%
of its subscriber base. The company has already deployed high-speed
4G LTE services in most of its major markets and covered 97% of its
market with a 5x5 megahertz channel bandwidth.
The company has also launched RCS on Oct 31, which is a 3rd
Generation Partnership Project (3GPP) standard designed for telecom
carriers to provide voice, text and video services. Globally,
MetroPCS is the first telecom company to deploy such a service and
expects this to enhance customers' prepaid experience with features
like integrated instant messaging or chat, WiFi and video calling
and simplified content sharing.
Further, RCS will provide competition to the company over mobile
virtual network operator (MVNOs) and other wireless carriers, which
do not provide such services.
While the company continues to seek spectrum opportunities,
enhancing network capacity through technology remains a
cost-effective, near-term alternative. The company is looking
forward to its proposed merger with T-Mobile USA, the subsidiary
of Deutsche Telekom AG ( DTEGY ). The merger
is expected to close by mid 2013.
MetroPCS Communications operates with other prepaid carriers
like Leap Wireless International Inc. ( LEAP ) and retains a
Zacks Rank #3 (Hold).DEUTSCHE TELEKM (DTEGY): Free Stock Analysis
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