According to recent claims the wireless service provider Verizon Communications says that the company doesn't seek for a bigger spectrum, rather it is focusing on improving the quality of current band and make its current airwaves more efficient.
Verizon Communications Inc (NYSE:VZ) has announced that the company during the short term doesn't seek any broad spectrum purchases, despite its previous expenditure of $18.2 billion bid in the Federal Communications Commission's (FCC) AWS-3 auction.
While talking in a press conference of investors, the company's CTO Tony Melone said to have enough spectrum capacity to fulfill consumer demand for short run. Regarding the auction he said, "Entering the auction, there were no markets where we felt compelled to acquire spectrum."
The company was expected to spend around $15 billion in auction in order to maintain the competitive edge against the rivals. The company however, surprised investors by bidding as low as $10.4 billion for acquiring of 181 licenses. This resulted in speculations by investors regarding the company either leasing spectrums or buying it from the operators.
The company, despite making it clear that they are not interested in buying more spectrums, are still looking to acquire it from secondary y market.
The company made it clear that they want to play smart by focusing on their exiting airwaves and improving the quality and efficiency of it. Melone reportedly added, "We have significantly improved our AWS spectrum position, now having 40 megahertz or more in 92 of the top 100 markets." The company has improved their quality of service in cities like San Francisco, San Diego, Los Angeles and Baltimore.
This means Verizon has alternative strategies for the development of the company in order to expand their network. Mr. Malone informed that the company has already started re-farming of its spectrum for LTE deployment.
The company is also working on improving its carrier aggregation, as it has proved to be significant for the company itself. This would allow the service provider to bundle up disparate bands of spectrum, so they can carry on more data at faster speeds, on their available network. As Melone said, "Carrier aggregation gives us tremendous flexibility in leveraging our spectrum assets."
Verizon is clearly looking for cost-effective methods in order to take the best advantage of its available assets and resources, this re-farming of spectrum will clearly give the company's carrier "cell-edge performance" and "further increase the value of the spectrum", according to Mr. Melone.
Verizon's CFO, Fran Shammo further added, "Our future plans do not require us to acquire large blocks of spectrum in the near term." He informed that the company will further allocate an additional $500 million for small cell densification in 2015.
Article Source: http://www.articlesbase.com/cell-phones-articles/verizon-communications-doesnt-seek-large-spectrum-purchase-7205086.html
About the Author
Justin is an experienced business advisor. He is a motivational Writer/Author, which includes multiple topics on small start up businesses for stockpricediver.org.
Keywords
wireless carrier,company spectrum,spectrum airwaves