Must-know: Why 4G adoption and FiOS are driving Verizon's growth (Part 6 of 12)
Verizon scores the highest in terms of network performance
The quality of a network is important for any telecom company. During the conference call to announce the second quarter of 2014 (or 2Q14) earnings, Verizon’s (VZ) management claimed that it continues to strive to improve its network performance, which enables it to carry more traffic on its wireless network than any of its competitors. A report from RootScore authenticated this claim.
According to the report and as the chart above shows, Verizon’s network performance is the best among other U.S. telecom providers such as AT&T (T), T-Mobile (TMUS), and Sprint (S). According to the same report, Verizon also scores the best in terms of both network reliability and speed, which are integral parts of network performance.
Higher capex spending enabled high quality network performance for Verizon
During the conference call, Verizon mentioned that it continues to have stringent network drive tests to help improve its network. The company also continues to invest heavily in building its 4G LTE coverage and adding capacity for its existing coverage. Verizon’s capital expenditure (or capex) on its wireless business increased from $2.3 billion in 2Q13 to $2.8 billion in 2Q14.
Verizon mentioned that it’s actively deploying the Advanced Wireless Services (or AWS) spectrum across the country, which covered more than 350 markets. It recently re-branded its AWS spectrum as XLTE, which is a technology that allows for faster data speeds and higher bandwidth during peak hours. According to Verizon, the XLTE network supports all major smartphones including Apple’s (AAPL) iPhone 5S and iPhone 5C.
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