One of the bigger trends in telecoms has been the evolution of cloud computing and how software operating in the cloud is being used by carriers to build out and manage their networks — moves disrupting traditional business models based around the purchasing and deployment of costly telecoms routers, switches and other costly physical equipment. Today, Mavenir — one of the hopefuls in that space, with a focus on Open Radio Access Networks and related services for 5G networks — is announcing $100 million in funding to expand its technology and its customer base.
The first of those will involve bringing more AI tools into the mix, the company said; and as for the latter, the company already has a sizable business: it currently has more than 250 service provider and enterprise customers across 120 countries, services that altogether cover more than half of the world’s mobile subscribers. The plan will be not just to continue expanding that pool, but to build more services to sell to current customers.
Mavenir described the funding as “anchored” by Siris, a PE firm that’s been backing the company for years. Mavenir is not naming further investors in this latest capital injection, but other existing backers include Koch and Pendrell. Koch and Siri also participated in the company’s last financing, a $155 million round in October 2022. It’s not disclosing its valuation but we have contacted the company to ask.
Mavenir has been through a couple of different ownership structures, including at one point being majority owned by Siris and used as the umbrella for a roll-up of telecoms software vendors Mitel and Xura — both also of the bigger consolidation trend — to capitalize on new opportunities with 5G networks. After selling a $500 million stake to Koch in 2021, Siris remained at least a partial shareholder, and given the $255 million raised in the last seven months, it seems Siris is back into investment mode with the company now.
Mavenir is part of the wave of companies that also includes companies like DriveNets, Arrcus, and even AWS looking to capitalize on the so-called trend for digital transformation in the telecoms industry. Telecoms carriers are on the hunt for more ways to bring down their own capital and operational expenditures while providing more flexible services to business and service provider customers as they scale up and down. Kit from the likes of Cisco, Juniper and Arista represents the legacy, incumbent approach to network provision and operation; now, the pitch is that software, delivered via cloud services, is the new and better solution.
“This new capital will allow us to accelerate our capabilities in automation, sustainability, and use of AI as we enable our customers to efficiently deploy and operate Open RAN based end-to-end cloud-native networks,” said Mavenir CEO and president Pardeep Kohli in a statement. “Our unique strategy incorporates best practices from the hyperscale, cloud and IT industries, to transform how the world connects and builds the future of networks.” Kohli has been with Mavenir for years — initially directly with the company and then reappointed the head of the business after his next employer — Xura, where he was also the CEO — was acquired and rolled up into Mavenir.
“This investment enables Mavenir to further scale its business and maintain its leadership in Open RAN and 5G transformation,” said Hubert de Pesquidoux, a Siris executive partner who is also chairman of Mavenir, in a statement. “We firmly believe in the automated networks of the future that are cloud-native, AI-native and Green-native, and we are confident that Mavenir’s innovations are essential in driving that evolution.”
Mavenir raises $100M to build more AI into its cloud-based automated network technology for telecoms services by Ingrid Lunden originally published on TechCrunch
In the case of O2 and Virgin Media, the deal is very complementary, since the former’s primary and strongest business continues to be as a mobile carrier, while Virgin Media’s is of being a broadband and pay-TV provider. Both have operations in each other’s service areas but not nearly at the same scale.
“Combining O2’s number one mobile business with Virgin Media’s superfast broadband network and entertainment services will be a game-changer in the U.K., at a time when demand for connectivity has never been greater or more critical,” said Telefonica CEO, Jose Maria Alvarez-Pallete, in a statement. “We are creating a strong competitor with significant scale and financial strength to invest in UK digital infrastructure and give millions of consumer, business and public sector customers more choice and value. This is a proud and exciting moment for our organisations, as we create a leading integrated communications provider in the U.K.”
Mike Fries, Chief Executive Officer of Liberty Global, added in his own statement: “We couldn’t be more excited about this combination. Virgin Media has redefined broadband and entertainment in the U.K. with lightning fast speeds and the most innovative video platform. And O2 is widely recognized as the most reliable and admired mobile operator in the U.K., always putting the customer first. With Virgin Media and O2 together, the future of convergence is here today. We’ve seen the benefit of FMC first-hand in Belgium and the Netherlands. When the power of 5G meets 1 gig broadband, U.K. consumers and businesses will never look back. We’re committed to this market and are right behind the Government’s digital and connectivity goals.”