& 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 Custom TV
CommScope – Meeting the Demands of Tomorrow's Networks

3|24|17   |     |   (0) comments


Phil Sorksy, Vice President International at CommScope, discusses addressing the challenges faced by service providers today, and as future trends emerge.
LRTV Huawei Video Resource Center
AMS-IX & Huawei's OSN 902

3|24|17   |     |   (0) comments


Huawei shows how its OSN 902 platform helps the Amsterdam Internet exchange to connect the world using multiplexing.
LRTV Huawei Video Resource Center
Huawei's Smart Energy Innovation Center

3|24|17   |     |   (0) comments


In Nuremberg, Huawei showcases its latest capabilities in the digitalization of Internet resources, network infrastructure and intelligence at its Smart Energy Innovation Center.
Valley Wonk
OFC & Hyperscale: A Good Mix?

3|24|17   |   01:50   |   (0) comments


Cloud and telecom players want different types of equipment for their networks, as the chatter at OFC reveals.
LRTV Custom TV
Etisalat on NFV Journey

3|24|17   |   10:37   |   (0) comments


Etisalat is a service provider that prides itself on bringing innovative technologies to the markets it serves. It was one of the first operators to implement 3G and leads the pack in fiber penetration. Now, Esmaeel Al Hammadi, Etisalat's SVP of Network Development, explains the operator's journey to virtualization, beginning with the network core, as well as the ...
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 3

3|22|17   |     |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting on the application of technologies and key business verticals such as transportation, smart city, manufacturing, media and finance.
LRTV Documentaries
No Regrets: Cox's Finkelstein on Fiber & More

3|22|17   |     |   (0) comments


At the Cable Next-Gen Technologies & Strategies event in Denver, Cox's Jeff Finkelstein examines the cable capex conundrum.
LRTV Documentaries
Cable Next-Gen: The 'Mile High' View From Denver

3|22|17   |   11:56   |   (0) comments


Alan Breznick kicks off the Cable Next-Gen Technologies & Strategies event in Denver, casting his thousand-yard stare over cable's current competitive landscape.
LRTV Huawei Video Resource Center
Huawei at CeBIT 2017: Day 2

3|21|17   |   2:27   |   (0) comments


Light Reading reports from CeBIT 2017 in Germany, where Huawei is exhibiting digital transformation solutions around IoT, smart data centers, OpenCloud ecosystem and its newly announced storage-as-a-service solution.
LRTV Custom TV
Driving Better Mobile Customer Experience While Transforming the Mobile Network

3|21|17   |   7:47   |   (0) comments


The Citrix NetScaler mobile gateway is an intelligent traffic management solution which can markedly improve the customer experience provided by mobile operators, even when traffic is encrypted. Critical network services can be consolidated and virtualized using NetScaler. Because of the unique architecture, NetScaler can be deployed on any hypervisor, on a ...
LRTV Custom TV
Mastercard: What's Next for Mobile Payments?

3|21|17   |   7:49   |   (0) comments


2017 marks the fifth consecutive year for Mastercard at Mobile World Congress and it was a great time to reflect on the amazing advances the payments industry has made as well as discuss "What's Next' in the digital commerce future. We spoke to James Anderson, executive vice president of digital payments at MasterCard, about digital wallets to tokenization to ...
LRTV Custom TV
Mastercard: 2 Billion Adults 'Trapped' in Cash Economy

3|21|17   |   03:51   |   (1) comment


Despite advances made in the last several years, two billion adults around the world are trapped in a cash economy and lack what we take for granted -- a safe way to receive, save and use money. Shamina Singh, executive vice president of sustainability and president of the Mastercard Center for Inclusive Growth, chats about how Mastercard is developing new ways to ...
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
High-Band 5G: Let's Address the Range Question, Shall We?
Dan Jones, Mobile Editor, 3/21/2017
Eurobites: A1, Nokia Turn It Up to 11
Paul Rainford, Assistant Editor, Europe, 3/22/2017
FTTH No Slam Dunk for Cable
Carol Wilson, Editor-at-large, 3/23/2017
Top Priorities for B/OSS Transformation
James Crawshaw, Senior Analyst – OSS/BSS Transformation, Heavy Reading, 3/20/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
At MWC 2017, Qualcomm's CTO Matt Grob talks to Light Reading's CEO and Founder Steve Saunders about the progress being made in the development of the technologies and standards that will underpin 5G.
Animals with Phones
Neither Do We Click Here
Is that a prerequisite?
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.