& cplSiteName &

Verizon Continues 4G LTE Capacity Spend in Q2

Dan Jones
7/22/2014
50%
50%

Verizon Communications is continuing to focus on spending to increase its 4G network capacity as users and data traffic migrate to its faster LTE network.

On the operator's second-quarter earnings call Tuesday morning, CFO Fran Shammo said that Verizon Communications Inc. (NYSE: VZ), which took full control of Verizon Wireless this year, spent $2.8 billion on wireless capex in the spring quarter. In particular, Verizon has been adding LTE capacity by layering in advanced wireless services (AWS) spectrum with its existing 700MHz network. (See More 4G Muddling: Verizon Brands AWS XLTE and Marketing Verizon's Double-Wide 4G in NYC.)

"We now have more than 350 markets with AWS, or XLTE we are branding it," Shammo said on the call. "We are investing to stay ahead of demand." (See Verizon Leads With Double-Wide 4G.)

In addition to the expanded LTE, the capacity upgrades will include adding distributed antenna systems (DAS) and small cells to improve localized coverage, Shammo said. (See Verizon Deploys AlcaLu's LTE Small Cells .)


Psssst! Want to know more about small cells? Check out our dedicated small cells content channel here on Light Reading.


Overall, Verizon expects total capex for the year to remain in the $16.5 billion to $17 billion range, with a decrease in capital spending as a percentage of total revenues for the full year.(See Capex Trend Points to Less Seasonality – Analysts.)

There are good reasons why Verizon is focused on adding more LTE capacity to its network in 2014. Shammo said that 76% of the data traffic on its network now runs over 4G LTE and that number will continue growing.

The operator activated 2.3 million new LTE devices on its network during the quarter. One million of these were smartphones and 1.2 million were tablets.

Shammo highlighted the growth trend in tablets as especially crucial, saying that Verizon currently has 5.4 million monthly contract (postpaid) customers with tablets on the network.

"We see that as a great opportunity to grow in 2014," Shammo said.

He warmed to the tablet topic again in the Q&A portion of the call. "Tablets are extremely good for the industry, not just Verizon," he said, driving traffic uptake and helping to reduce churn. "These 4G tablets drive more usage on the network than 3G smartphones," he added.

Of course, ever-increasing wireless data usage will eventually require more bandwidth for fast data services. In response to questions, Shammo said that Verizon is currently more focused on grabbing AWS-3 spectrum, which will go under the FCC hammer on November 13 this year.

He said that, as yet, the operator is less focused on the broadcast spectrum expected in 2015 at the moment. "There's no final rules laid out."

— Dan Jones, Mobile Editor, Light Reading

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
DanJones
50%
50%
DanJones,
User Rank: Blogger
7/22/2014 | 3:12:43 PM
Re: Tablets
Yeah, they're basically giving them away. Shammo *still* says they're less of a subsidy than an LTE smartphone though.
KBode
50%
50%
KBode,
User Rank: Light Sabre
7/22/2014 | 2:42:43 PM
Re: Tablets
I really didn't think it would work. The tablet they're offering for free (their own branded tablet) is faiirly awful. Wonder how many of those subscribers they lose down the road? Wonder how many buy the tablet, use it a bit (or upgrade), but forget to take it off of their account? Will be interesting stats to watch.
milan03
50%
50%
milan03,
User Rank: Light Sabre
7/22/2014 | 2:23:38 PM
Re: Tablets
Karl, that's exactly what Verizon's stragtegy is. Free tablet + $10 to add it to your account = additional Net Adds and ultimately revenue.

They've actually lost ~700,000 phone subs YoY.
KBode
50%
50%
KBode,
User Rank: Light Sabre
7/22/2014 | 1:47:11 PM
Tablets
I had no idea that tablets were such a driving force and that connections were so high. It seems silly to me to buy an LTE tablet when I can just tether it to an LTE smartphone. I just bought a new LG G3 phone in a Verizon store, and they were almost THROWING tablets at me for free in the hopes I'd sign up, pay the $10 extra connection fee, and drive up my monthly usage.

I wouldn't have thought this strategy would work on most people, but apparently it works very, very well.
jabailo
50%
50%
jabailo,
User Rank: Light Sabre
7/22/2014 | 12:53:00 PM
Home, streaming use
I will ask the same question I've been asking about Sprint's plans for 4G.


Other than mobile, will Verizon have a wireless broadband service for home use?  An unlimited high speed plan for uses like Netflix?  I am a Clear Wimax customer and have been wondering what will be the replacement home broadband technology, if any.

 
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Interviews
Heavy Reading: The Web-Scale View

1|18|17   |     |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Heavy Reading's former chief analyst Patrick Donegan shared insight from the recent web-scale operators report, which featured research on how web-scale operators view the market, the best web-scale companies to ...
LRTV Custom TV
Cisco's Cloud Scale Networking: Automation, Virtualization & Simplification

1|18|17   |     |   (0) comments


Cisco's Sanjeev Mervana outlines the latest innovations in networking technology at CES 2017 in Las Vegas.
LRTV Custom TV
ADVA Talks Innovation & the Future of Networking

1|17|17   |     |   (0) comments


Ray Le Maistre and Christoph Glingener, CTO of ADVA Optical Networking, discuss the current state of the industry, cooperation and collaboration, open innovation and the future of networking.
LRTV Custom TV
Cisco's Infinite Video Platform

1|17|17   |     |   (0) comments


Cisco's Infinite Video Platform allows service providers to deliver broadcast-quality video over IP networks. Infinite video supports many devices, from 4K TVs to tablets to game consoles. Join Cisco's Rajeev Raman for a brief tour and live demo.
LRTV Interviews
Masergy: Ability to Adapt Key for NFV

1|16|17   |   6:40   |   (0) comments


Speaking at Light Reading's 2020 Vision in Rome, Masergy's VP, Global Technology, Ray Watson, said agility is key to providing the mix and match NFV-based services that are driving business for the managed service provider today.
LRTV Interviews
Equinix: The Data Explosion

1|13|17   |   4:16   |   (0) comments


At Light Reading's 2020 Vision in Rome, Eric Schwartz, president of EMEA, Equinix, talked about how Equinix is helping its customers manage the influx of data today, and how it's preparing for a future filled with millions of connected IoT devices.
LRTV Interviews
Heavy Reading: The Changing Data Center Landscape

1|12|17   |   6:05   |   (1) comment


At Light Reading's 2020 Vision event in Rome, Heavy Reading's Senior Analyst Roz Roseboro talks about how virtualization is impacting data center evolution and how that evolution is affecting the relationship between service providers, data center operators and public cloud providers.
LRTV Interviews
Boingo: Prepping for Millions of Devices

1|12|17   |   5:07   |   (1) comment


At Light Reading's 2020 Vision in Rome, Boingo's CTO Derek Peterson discusses how wireless operators will address the needs of low-bandwidth and high-bandwidth apps at the same time, the need for more MHz, the impact of IoT and more.
LRTV Interviews
Comcast Shows Off Gig Gateway at CES

1|11|17   |     |   (1) comment


With its largest presence at CES in years, Comcast took the wraps off its long-awaited gigabit gateway and a new platform for managing the home WiFi network. Light Reading Senior Editor Mari Silbey sat down with EVP Chris Satchell to discuss the latest Comcast advance, and met with VP of Product Strategy and Development Andrea Peiro to walk through a demo of the ...
LRTV Interviews
Colt: End-to-End Key for 2017

1|10|17   |   6:21   |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Nico Fischbach of Colt said having a multi-carrier, end-to-end service proposition is going to be key for 2017 -- and SD-WAN is instrumental in making it happen.
From the Founder
Cisco's Clemson on Mobile Cloud Video

1|9|17   |     |   (1) comment


Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators. "If you think about where we're going… whether it's a mobile application, or a video ...
LRTV Custom TV
VMware Telco NFV Solutions – Preparing for 5G & IOT

1|9|17   |     |   (0) comments


Shekar Ayyar, EVP & Corporate Strategy/General Manager of Telco for VMware, discusses VMware's Telco NFV solutions role and foundation for the Imminent Arrival of 5G & IOT.
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
A Women in Comms Glossary
Sarah Thomas, Director, Women in Comms, 1/18/2017
Next Plugfest Gets G.fast Closer to Market
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 1/13/2017
TV's Paradox: No HDR Without 4K
Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
Nokia CTO: 2017 Is the Year 5G Gets in the Field
Dan Jones, Mobile Editor, 1/19/2017
Cable Has One Thing Verizon Needs
Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Animals with Phones
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.