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Why Does Verizon Still Have an Advantage in Network Performance?

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Dec. 4 2020, Updated 3:53 p.m. ET

Verizon’s network performance

Network performance is the key factor affecting customer retention. Verizon (VZ) continues to pursue its three-tier network performance strategy.

The foundation of the strategy is to protect and grow the company’s position as a market leader in network connectivity, with the goal of boosting profitability and financial flexibility.

During the Morgan Stanley Technology, Media & Telecom Conference on February 28, 2017, Matt Ellis, Verizon’s chief financial officer, spoke about Verizon’s 2016 network performance. Ellis said that Verizon continued to lead the industry in network performance and reliability, along with densification, which added a significant amount of capacity.

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Additionally, Verizon is focusing on an SDN (software-defined networking) approach to transform its network. SDN helps telecommunications companies to save on costs and provide more flexibility, as the approach requires them to virtualize their networks instead of spending on dedicated fixed hardware.

According to an analysis by RootMetrics and other third-party industry trackers, Verizon has the best wireless network in the United States.

RootMetrics network performance results in 2H16

According to the RootScore report for 2H16, Verizon came in at the top of all six network performance categories, including overall performance, network reliability, speed, data, call, and text performance. Verizon won the overall network performance award for the seventh consecutive time.

At the national level, AT&T (T), Sprint (S), and T-Mobile (TMUS) were in second, third, and fourth places, respectively, in terms of overall network performance.

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