Verizon Wireless of
Verizon Communications Inc.
) has launched its 4G LTE Network in Summersville Area, West
Virginia. The company initially launched 4G LTE network in West
Virginia in Dec 2010, and now covers key areas in the region
including Fayetteville, Oak Hill and Mount Hope. We believe the
expansion of LTE coverage is imperative to Verizon's growth given
the rising demand for high speed data services.
Verizon has a strong foothold in wireless business and
continues to capture additional market share via robust
deployment of the 4G Long Term Evolution (LTE) network. This
leads to improved operating and capital efficiency as well as a
better competitive position among large players like
The company is leading the industry in terms of 4G deployment.
On Jan 6, Verizon Wireless announced its agreement to transfer
700 MHz A Block spectrum licenses to
) in exchange for cash ($2.4 billion) and spectrum licenses in
the AWS and PCS bands which it will use to add capacity to its 4G
The transaction is expected to close in the first half of
2014. As of Dec 31, 2013, it covered 500 markets and more than
305 million people (nearly 99% of the total 3G network).
Verizon's LTE growth is also supported smartphone usage that
would boost data revenues going forward. During the quarter, the
company's smartphone penetration increased to 70%. It activated
8.8 million smartphones in the fourth quarter and introduced
numerous devices to attract customers to 4G LTE that covers over
69% of total data traffic.
In addition, the plan to roll out VoLTE is expected to boost
its performance level. The first series of handsets will be
available by the end of 2014. We believe voice traffic on LTE
will help the company in refarming its 3G spectrum to accommodate
LTE and increase bandwidth. Further, the company's 4G LTE Router
- an Internet access gadget compatible with both wired and
Wi-Fi-enabled devices - will likely gain popularity in the coming
Verizon currently retains a Zacks Rank #3 (Hold).
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