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Verizon Continues to Focus on Network Densification

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Verizon’s network performance

Network performance is the crucial factor that impacts customer retention. Verizon (VZ) has demonstrated that its network advantage can drive customer growth even with premium pricing. During Verizon’s 2Q17 earnings conference call, the management stated that the company continues to push for network densification using small cells, which include expanding fiber capabilities. Further, the management believes that the company has enough spectrum to support capacity needs.

To transform the network, Verizon is focusing on a SDN (software-defined networking) approach. SDN helps carriers by offering more flexibility and cost savings, as this approach demands they virtualize their networks as an alternative to spending on dedicated fixed hardware.

As per RootMetrics and other third-party industry trackers, Verizon has the best wireless network in the United States.

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RootMetrics

Verizon has posted an industry-leading performance across varied network performance metrics. According to RootMetrics’s 1H17 RootScore report, Verizon won the top spot in all six network performance metrics: text performance, call performance, network speed, data performance, network reliability, and overall performance. Verizon won the overall network performance award for eight consecutive test periods. Verizon has earned a score of 94.5 for overall network performance as compared to T-Mobile’s (TMUS) score of 86.5, AT&T’s (T) score of 92.9, and Sprint’s (S) score of 87.9.

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