updated 07:59 am EST, Wed November 13, 2013
Carrier investing $500M to help fix LTE bandwidth issues
Verizon is having issues providing LTE service to customers in large metropolitan areas, claims Chief Financial Officer Fran Shammo. The carrier is finding that it is struggling to provide sufficient bandwidth to cover subscriber demand for the high-speed connection in areas such as New York, Chicago, and San Francisco, and that the quality of the service is suffering as a result.
Speaking in an investor conference, CNET reports that Shammo admitted "There are certain pockets where we're absolutely going to experience that down tick from the LTE network down to 3G because of capacity constraints." LTE users now make up a third of the entire customer base, one which is said to consume 64 percent of total bandwidth, with Shammo advising that city users skew the percentages even higher. Though data use by LTE compared to 3G customers is unknown, Shammo revealed it was at least double, with the problem set to grow bigger as more users go for LTE devices.
To combat this, Verizon has pushed its capital expenditures up by $500 million this year, increasing small cell investments and increasing the amount of spectrum available, something it has been caught testing in New York. Shammo believes that these bandwidth issues in affected areas will be alleviated "by the end of this year."