Verizon Wireless – Building a Robust Network

Verizon Wireless has always been one of those companies that are aggressive but not reckless with its cash. Verizon is wisely putting cash into its network. The network is the core of the company’s business. I know the typical investment banker cringes when they hear a carrier is spending capital on its network unless it is something sexy and new. Thank goodness, Verizon is paying attention to its fundamentals.

 

I don’t have any issues with the amount of money being spent. There are things that engineers can do to tweak a network, which results in minimal capital being spent. I am all for system tweaking; it is a way of mining value out of a network. However, there is a limit you reach with any system’s capabilities. Once you reach that limit, you either put in more equipment or change technology.

 

I think, what is important to note is that Verizon is spending money on 3G as opposed to 4G. I agree with the decision.  To spend gobs of cash on 4G now and possibly starve your 3G business is not smart business. To spend money on the 3G network is a fiscally responsible thing to do.  Verizon is maintaining a balance in its network growth and evolution.  The Verizon 3G network is generating business and it is growing. Responsible and smart business.

 

As for Verizon’s LTE efforts; go team.