Why Verizon Believes Network Differentiation Still Matters



Verizon’s network performance

Network performance is the key factor affecting customer retention. Verizon (VZ) has showcased that its network advantage could drive subscriber growth—even with premium pricing. Earlier, Verizon’s management had highlighted that the carrier continues to push for network densification using small cells, including expanding fiber capabilities.

During the Goldman Sachs Communacopia Conference held on September 13, 2017, Lowell McAdam, Verizon’s chief executive officer, spoke about the company’s network performance. McAdam stated that competitors hadn’t closed the network quality gap. Further, he said, “We had less than 2% of our sales sites down. One of our competitors said publicly 75% of their network was down. So if they’ve closed the gap, I would just suggest they have a little bit more gap to deal with.” Plus, Verizon is investing heavily and should have a head start in 5G.

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

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Verizon showcased industry-leading performance over various network performance categories. As per RootMetrics’s first half 2017 RootScore report, Verizon secured the top spot in all the six network performance categories: call performance, network speed, text performance, data performance, overall performance, and network reliability. For eight consecutive test periods, Verizon has won the overall network performance award. Verizon earned a score of 94.5 for overall network performance, compared to Sprint’s (S) score of 87.9, AT&T’s (T) score of 92.9, and T-Mobile’s (TMUS) score of 86.5.


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