Leading wireless service provider, Verizon Communications Inc. (VZ - Analyst Report) has enhanced its 4G LTE network coverage within and in the nearby areas of Dorset, Vt. The company first launched its LTE services in Vermont in May 2012 and is increasingly focusing on bring more customers under its LTE wing in the region.
Verzion’s LTE services are currently available in over 500 markets in the U.S. and cater to approximately 301 million customers. The company remains successful in covering over 99% of its 3G footprint with LTE coverage and expects to convert the entire nationwide 3G footprint to 4G by 2013.
Further, Verizon is riding high on smartphones sales including Apple Inc.’s (AAPL - Analyst Report) iPhone along with the introduction of other devices that would boost data revenues going forward. During the quarter, the company’s smartphone penetration increased to 67%. It activated 7.6 million smartphones and introduced numerous devices to attract customers to 4G LTE that covers over 64% of total data traffic. In addition, the plan to roll out VoLTE is expected to boost its performance level.
The first set of handsets will be available by 2013 end, with more coming in 2014. We believe that these handsets will reduce Verizon's reliance on CDMA chipsets, leading to lower device cost. Additionally, 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 days.
Verizon, which operates with carriers like AT&T, Inc. (T - Analyst Report) and Sprint Corp. (S - Analyst Report) has a Zacks Rank #3 (Hold).