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Verizon Sees This as One of Its Main Growth Drivers



Technological advancements have given Verizon an edge

Verizon Communications’ (VZ) network has always been perceived as the best network among major wireless providers, and the company considers this network leadership to be its main growth driver. Verizon has been able to handle exponential growth in data traffic with ease by making technological advancements in network architecture. According to Verizon, the company’s network can now carry the same amount of traffic in one hour that it used to carry in one week only ten years ago. In the last quarter alone, its network usage increased by 44% on a YoY (year-over-year) basis.

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The company’s management stated during its 2Q16 earnings conference call that “to make sure 4G LTE can handle our customers’ ever increasing demands, we are challenging conventional approaches to network architecture by deploying fiber to cell sites and densifying cells to handle the constant demand on the network in high usage areas.”

Verizon network performance

Verizon also stated: “We are also optimizing 4G with new techniques, like centralized baseband architecture, carrier aggregation, and core network virtualization initiatives, which provide operating, capital, and spectral network efficiencies.”

High ranking in mobile network performance parameters

According to a report from RootMetrics, in US network performance in 2H16, Verizon managed to win awards for all six criteria, including overall performance, network reliability, network speed, data performance, call performance, and text performance. The company managed to score outright wins in 41 states over AT&T (T), T-Mobile (TMUS), and Sprint (S). It tied with AT&T and T-Mobile in seven states, and AT&T managed to score outright wins in only two states, while Sprint did not even tie for the top spot in any state.

That said, Sprint has improved its network by leaps and bounds and is now a serious top competitor. We’ll take a closer look at Sprint in the next part.


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