Verizon Wireless, a subsidiary of
Verizon Communications Inc.
) is expanding its network capabilities with new cell sites in
the Hawaii Islands. The company introduced 4G sites in
Princeville, Kukui'ula, Kilauea, Moloa'a, Anahola, Nawiliwili,
Wailua, Lihu'e, Kapa'a, Knudsen Gap, Koloa Town and Kalaheo. The
expansion plans in the 4G space would will likely boost the
company's data revenues and tap potential opportunities in the
Verizon remains on track with current target of expanding 4G
coverage into 400 markets by the end of 2012. Including the
latest network expansion, Verizon LTE coverage is now available
in 470 markets. The wireless giant now plans to turn its entire
3G market into 4G by the end of 2013.
To achieve its goal, Verizon is moving quickly to acquire more
spectrum licenses in order to support its video content and other
data services in the rapidly growing smartphone market. The
company bought wireless spectrum from SpectrumCo and Cox
Communications as wells as other wireless providers such as
Leap Wireless International Inc.
We believe the purchase of new spectrum will double Verizon's
capacity and provide services at a much higher speed, thereby
driving data revenues and boosting its competitive position.
Further, Verizon is riding high on smartphones with the
introduction of devices that would boost data revenue going
forward. Verizon has also adopted a new shared data strategy -
Share Everything - which is considered the biggest innovation in
wireless pricing over the past several years. Share Everything
will maximize the carrier's long-term revenue, though it could
put pressure on monthly average revenue per user growth in the
short term. All these developments and operating efficiencies are
aimed to bring in $2 billion in cost savings in the wireless
Verizon has a Zacks #3 Rank, implying a short-term (1-3
months) Hold rating. For the long term, we have a Neutral
recommendation on the stock.
LEAP WIRELESS (LEAP): Free Stock Analysis
VERIZON COMM (VZ): Free Stock Analysis Report
To read this article on Zacks.com click here.