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How Verizon’s Network Performance Compares to the Competition

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Mar. 6 2018, Updated 3:32 p.m. ET

Verizon’s network performance

A mobile carrier’s network performance plays a key role in customer retention. Verizon Communications (VZ), the largest wireless service provider in the US, is pushing for network densification using small-cells, which includes expansion of fiber capabilities. 

Verizon reported postpaid phone churn rate of 0.77% in 4Q17, which was the 11th consecutive quarter of postpaid phone churn rate of less than 0.90%. Verizon has demonstrated that its network advantage can drive customer growth, even with premium pricing.

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Verizon is focusing on software-defined networking (or SDN) and network function virtualization (or NFV) technologies to transform the network. SDN helps the telecom carriers by providing enhanced flexibility and cost savings, as this technique requires them to virtualize their network as a substitute for spending on dedicated fixed hardware.

RootMetrics

Verizon (VZ) has showcased industry-leading performance in different network performance categories. Based on RootMetrics’s second half 2017 RootScore report, Verizon came in at the top spot in all the six network performance categories: text performance, data performance, network speed, call performance, network reliability, and overall performance. 

Verizon won the overall network performance award for nine consecutive test periods based on the same report. Verizon had earned a score of 95.0 for overall network performance, compared to Sprint’s (S) score of 87.8, AT&T’s (T) score of 92.8, and T-Mobile’s (TMUS) score of 86.8.

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