The wireless division of Verizon Communications (VZ) has recently expanded its fourth generation (4G) Long Term Evolution (LTE) network coverage in Glocester, Rhode Island. The service will enable Verizon customers with compatible devices to avail data services at a speed 10 times faster than customers on 3G networks.
Verizon Communications has a strong foothold in the wireless market and expects growth from higher penetration of devices and increasing market penetration of 4G LTE services. This will not only enhance market share for the company but also offer competitive advantage against peers like AT&T, Inc. (T), Sprint Corporation (S) and T-Mobile US, Inc. (TMUS).
On Jan 6, 2014, Verizon Wireless had announced an agreement to transfer 700 MHz A Block spectrum licenses to T-Mobile US for $2.4 billion and spectrum licenses in the AWS and PCS bands. The bands will help in expanding its 4G LTE network coverage.
Further, in Apr 2014, the company inked a deal with Cincinnati Bell Inc. for purchasing spectrum licenses worth $194 million. The deal would incorporate licenses in key markets like Greater Cincinnati and Dayton areas of northern Kentucky and southeastern Indiana.
In these areas, Cincinnati Bell reportedly offered GSM-based 2G, 3G and HSPA+ services through 460 cell sites. Verizon Communications has also planned to spend nearly $40 million to build 10.2 megawatts (MW) of new solar energy systems covering eight cell sites in five U.S. states. The company has tied up with SunPower Corp. for the installation of these solar systems. Verizon’s latest expansion plans include the installation of alternative energy sources at its cell sites to cut carbon emissions footprint considerably by 2020. The plan remains a part of the company’s "on-site green energy program" launched last year.
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