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MetroPCS expansion could help newly-public Mavenir

Mavenir Systems (MVNR) got something of a chilly reception on Wall Street last week after pricing its IPO on the same day as Twitter. The telecom software provider sold 5.5 million shares at $10 each, well below the $15 floor of its target range. But just as Mavenir’s big day was somewhat overshadowed by Twitter, news from one of its most important customers was also somewhat overlooked last week.

MetroPCS is a key customer for Mavenir, which sells software to enable voice-over-LTE, or VoLTE. MetroPCS is the only U.S. carrier to launch VoLTE so far, and last week news that the prepaid carrier was expanding to new markets was tucked into the earnings report of its new parent company, T-Mobile US. That earnings report also showed T-Mobile attracting large numbers of customers with its contract-free pricing, and that news got most of the media attention.

But T-Mobile US made sure to mention that its integration of MetroPCS was yielding better-than-expected synergies from an investment and operating expense perspective, and that MetroPCS would be coming to 15 new markets on November 21. Those markets include Cincinnatti, Columbus, Denver, Phoenix, Pittsburgh and Portland. By the end of the month, MetroPCS service is expected to be available in 30 markets nationwide.

So far, MetroPCS has not turned on VoLTE in all its markets — Dallas has been the main test market. One of the main gating factors for VoLTE is the availability of compatible handsets, but there are smartphones on the market that support voice over LTE. One other potential problem for Mavenir could be the fact that T-Mobile US has its own VoLTE ambitions, which may eventually eclipse those of MetroPCS.

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ABOUT AUTHOR

Martha DeGrasse
Martha DeGrassehttp://www.nbreports.com
Martha DeGrasse is the publisher of Network Builder Reports (nbreports.com). At RCR, Martha authored more than 20 in-depth feature reports and more than 2,400 news articles. She also created the Mobile Minute and the 5 Things to Know Today series. Prior to joining RCR Wireless News, Martha produced business and technology news for CNN and Dow Jones in New York and managed the online editorial group at Hoover’s Online before taking a number of years off to be at home when her children were young. Martha is the board president of Austin's Trinity Center and is a member of the Women's Wireless Leadership Forum.