Only 5% of Verizon customers have switched to LTE
Verizon Wireless has been the first one in the US to launch a truly fast and comprehensive 4G LTE network across most major markets, but a year after the launch still only a fraction of customers have transitioned to it.
Verizon Wireless CFO Fren Shammo admitted that only 5% of customers are on LTE right now. Verizon’s 4G network covers 200 million Americans and there are nearly 20 devices supporting it. Obviously this leaves the network uncongested now and allows more promotions to lure users.
At the same time, Verizon has put a huge marketing effort in LTE, and recently we’ve seen a couple of “Double Your Data” promotions where users get to download more for the same value.
Shammo explained that the 3G network Verizon built was made so that the carrier could handle the launch of the iPhone, but except for that the carrier wants to keep that investment at the absolute possible minimum. Big Red is trying hard to balance the sums it spends on 3G low and push 4G quickly, since that’s where the big returns are.
Additionally, AT&T and Sprint are rolling out their LTE networks too, which will tighten competition.
Verizon Wireless’ CFO also expressed his confidence over a deal with cable operators which will buy Big Red 122 AWS spectrum licenses for $3.6 billion:
“We see no issue with them closing this out by midsummer. And it's exactly where we expect it to be.We knew who was going to oppose it, no surprise there. So we're exactly where we thought we would be and we're expecting this to come to closure by midsummer.”