Verizon’s network performance
A mobile carrier’s network performance plays a vital role in its customer retention. Verizon Communications (VZ), the largest wireless service provider in the United States (SPY), is continuing to push for network densification using small cells, which includes the expansion of fiber capabilities.
Verizon reported a postpaid phone churn rate of 0.75% in 3Q17—the tenth consecutive quarter in which it had a postpaid phone churn rate of less than 0.90%. The telecommunications company has demonstrated that its network advantage can drive subscriber growth even with premium pricing.
Verizon is focusing on software-defined networking (or SDN) and NFV (network function virtualization) technologies to transform its network. SDN helps mobile carriers by providing enhanced flexibility and cost savings, as this technique demands them to virtualize their networks as a substitute for spending on dedicated fixed hardware.
Verizon has showcased industry-leading performances across various network performance categories. According to RootMetrics’s RootScore report for the first half of 2017, Verizon came in at the top spot in all six network performance categories: network speed, call performance, text performance, data performance, network reliability, and overall performance.
According to the same report, Verizon won the overall network performance award for the eighth consecutive test period. 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.