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Verizon CFO expects continuing capex spend on adding small cells & DAS, in part to support VoLTE handoffs with network density.

Verizon Beefing Up Network for VoLTE, Multicast Video

Dan Jones
8/20/2014
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Verizon needs to spend on small cells and network densification to support VoLTE and multicast video, according to its CFO.

Verizon Communications Inc. (NYSE: VZ)'s Fran Shammo called out the small cell, distributed antenna and in-building work at a recent Oppenheimer & Co. Inc. conference. Verizon has posted a webcast of the comments.

"You need that densification in the LTE network," Shammo said. "That's really where most of our investment will go this year."

Despite the anticipated cost benefits of software-defined networking (SDN) over the coming years, Shammo isn't expecting Verizon's capex to decline; in fact, he expects wireless capex to increase over the next couple of years.

"The reason our capex will not decline is because in wireless you have to build out these small cells, these antenna systems and in-building coverage if you want to stay ahead of the capacity and give the customer the experience that they want," Shammo said. "If you think about voice-over-LTE, that densification has to be pretty strong if you want to hold that high-quality call throughout your network."

"The handoff of VoLTE is a little different than CDMA was, and it has to be a much more densified network in order for that to work appropriately," Shammo elucidated.


Keep up with all the VoLTE news on our dedicated channel here on Light Reading.


Verizon is expecting to launch VoLTE at the tail end of this year. (See Apple Eyes VoLTE as 4G Voice Gets Real.)

Multicast is "about a year out," Shammo says. (See Verizon's Multicast LTE Video to Arrive in 2015.)

— Dan Jones, Mobile Editor, Light Reading

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DanJones
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DanJones,
User Rank: Blogger
8/21/2014 | 2:04:37 PM
Re: LTE-only
The end game is that they can get people off CDMA and reuse that spectrum bus that it's going to take time.
Mitch Wagner
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Mitch Wagner,
User Rank: Lightning
8/21/2014 | 2:01:47 PM
Densification
It's a real word. 

"Despite the anticipated cost benefits of software-defined networking (SDN) over the coming years, Shammo isn't expecting Verizon's capex to decline, in fact, he expects wireless capex to increase over the next couple of years "

Kind of like how traffic fatailities don't go down when you make cars safer, because people just drive faster to compensate. 

Ariella
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Ariella,
User Rank: Light Sabre
8/21/2014 | 1:48:36 PM
Re: LTE-only
I see, allowing enough time to be sure everything is in place. Well, that's prudent.
DanJones
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DanJones,
User Rank: Blogger
8/21/2014 | 1:45:50 PM
Re: LTE-only
If they're going to do VoLTE on an LTE only phone then they need a seriously dense network to maintain voice coverage. Hence the 2016 date I suspect.
Ariella
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Ariella,
User Rank: Light Sabre
8/21/2014 | 1:24:09 PM
Re: LTE-only
Is the delay strategic or necessary? It seems a bit of a long way off. 
DanJones
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DanJones,
User Rank: Blogger
8/20/2014 | 5:59:34 PM
LTE-only
Also said to expect LTE-only phones in 2016
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