Verizon Wireless store (interior 001)

When was the last time you heard a major United States wireless carrier admit that its network is facing pressure to meet the needs of its users? That’s exactly what Fran Shammo, Verizon’s chief financial officer, said in response to reports that its LTE network is folding under pressure in major cities such as New York, San Francisco and Chicago.

The network strain results in some users in metropolitan areas seeing their data throughput dropping to slower 3G speeds. Verizon blames its deteriorating network quality on “capacity constraints.”

The company has promised to allocate more resources toward fixing the network in high-congestion areas so that these slowdowns dissipate by the end of the year…

Shammo said during an investor conference, via CNET:

By the end of this year you are going to see all those issues dissipate. And then going into next year we will be ahead of the curve again.

He admitted that “capacity constraints” result in certain pockets “where we’re absolutely going to experience that down tick from the LTE network down to 3G”.

In response, the Big Red telco is pouring an additional $500 million in capital expenditure this year, investing in small cell technology and turning on more spectrum as it works to build up network capacity, the executive said.

CNET adds:

The growth in data traffic is a result of its early move into LTE. Verizon boasts the nation’s largest LTE network, and the longest running, which has meant more LTE customers than anyone.

And LTE customers like their data. While LTE customers make up a third of the company’s total base, they consume 64 percent of the traffic.

Shammo said that in big cities, that percentage is likely higher.

Verizon’s main rival, second-placed AT&T, now has LTE up and running in 461 U.S. markets, 39 short of matching Verizon’s now-complete 500-city 4G footprint.

The carrier is shooting to finish the commercial roll-out of its LTE by the summer of 2014 and its LTE now covers nearly 300 million people, as opposed to AT&T which hopes to blanket 270 million people with LTE signal by year’s end.

The outgoing Wall Street Journal tech columnist Walt Mossberg ran his own non-scientific tests to see which of the four major U.S. carriers had the fastest 4G LTE service, using Apple’s iPhone 5s in three locations: a Maryland suburb near Washington D.C., a location in Manhattan and another one in Silicon Valley.

He found that in places like New York, AT&T’s service delivered the speediest LTE experience at an average download speed of 34.8 Mbps versus an average of 19.7 Mbps observed during the three tests. AT&T came in third in Maryland and last in Silicon Valley.

US carriers LTE speeds (WSJ 001)

By contrast, Verizon finished second in New York with an average of 16.7 Mbps, well above its promised range of 5 to 12 Mbps. “Verizon wasn’t No. 1 in any of the test locations, but it was the most consistent performer, clustering between 15 and 18.6 Mbps,” Mossberg noted.

T-Mobile was third with an average score of 13.5 Mbps (first in Maryland with a 19.5 Mbps score) and Sprint came in last with an average speed of 10.4 Mbps (first in Silicon Valley with an average speed of 20.7 Mbps).

It’s worth mentioning that Verizon has now started building its next-generation LTE network, with private tests in New York showing speeds of up to 80 Mbps.

Other tidbits: T-Mobile’s network took the longest of the four to find an LTE signal and Sprint’s LTE signal was patchy in two cities. On its part, Sprint is getting ready to roll out a Sprint Spark tri-band LTE service that will improve reception.

Verizon 4G LTE coverage 20130520
Verizon’s coverage map.

“Sprint says its network is still wanting in some places because it is trying to replace technology while customers are still using the network,” wrote Mossberg.

Again, these are non-scientific tests so you should take the results with a grain of salt as network quality is dependent on a variety of factors, including network congestion, user load, locations, times of day, the type of device used, traffic prioritization, apps and what not.

“Some of you may not even get LTE at all where you live, typically in rural America,” he summed it up nicely. “The main conclusion I draw from this exercise is that decent LTE speed isn’t just limited to Verizon anymore, and that’s a good thing”.

According to a J.D. Power study (I know, don’t start), Apple is the top performer in customer satisfaction on AT&T and Verizon versus Samsung devices which lead on Sprint and T-Mobile.

What’s your experience with the Verizon network in your area?

Does it work as advertised?

What data speeds are you seeing?

  • Vince Reedy

    They better get on the ball because this problem is not going away.

    • Jack Wong

      Good luck, and I see this on Verizon since iPhone 3GS, less then 1mbps during peak hours… How sad…

      I just wish I can pay more on data charge and I get the static speed like FIOS.

  • Sean Clark

    If they sold subscriptions to LTE speed and then took on more people than their equipment can handle, a lot of people deserve compensation right now for the service they were promised but didn’t receive.

    • Jack Wong

      Exactly, my AT&T lte speed dropped from ~20mbps to ~5mbps in manhattan midtown area… It’s very unfair to customer no matter we are on limited or unlimited plan.

      I’m in TW now and 5days prepaid for 3.5G is only us$10 bucks and unlimited data with tethering!

  • Kurt

    Blaming the customers for their faulty services/devices. Sounds like Steve Jobs with “Your holding it wrong”

    • gittlopctbi

      I don’t quite take it that way–how else could he have worded it and still explain the problem?

      • Raashid

        “Our cellular networks are having a hard time keeping up with the demand of today’s technology”?…

      • gittlopctbi

        “Verizon blames its deteriorating network quality on ‘capacity constraints.'” The word “blame” was the reporter’s not the CEO’s.

        “He admitted that “capacity constraints” result in certain pockets ”where we’re absolutely going to experience that down tick from the LTE network down to 3G”.
        There are no words, at least in this article, where the CEO blamed the customer.

    • appleyay

      yes they are blaming customer.. we pay so they need to provide the service or go away

  • gittlopctbi

    Well, at least they recognize their deficiencies and are going to act upon them. So many bad companies do not want to see their deficiencies and just go about their business, hoping they will go away. The only thing that goes away are their customers. What Verizon is experiencing is too much success.

    As the article and graphs report, the other thing to keep in mind in comparing download speeds is that if you can’t get a signal, your download speed is ZERO Mbps. And if it takes a long time to get connected, then your download speed is drastically slower.

  • OhSixTJ

    I get about 18mbps down in Deep South Texas and that’s plenty fast for me.

    • Yujin

      Umm no one lives there dude. Try NYC with millions of people in manhattan and your edge phone is actually faster than verizon.

      • Jack Wong

        I don’t see why there is a negative for your post.

        All these big US cellular carries are making the $ from us but not solving the problem.

        It would be great if there is a highway in manhattan midtown area right? Who need 100mbps in Long Island… In College Point, Queen. I get 30mbps+… But I also have fios at 15mbps at home.

  • appleyay

    umm WTF.. we pay for the data and the service …if verizon can’t handle it they need to sell them selves to samsung and just be lame..

  • chumawumba

    Excuses, excuses

  • Yujin

    I had verizon and they even told it was my iphone so I even got apple to change my phone twice. The speeds in midtown manhattan are a joke .38 mb!! This is a heavy tourist area all year round so after a rep told me maybe I should upgrade to a share all plan (I was grandfathered into the unlimited) so I can take advantage I cancelled the contract and move to att which get a nice speed of 16-50 megabytes.

    Verizon won’t update the network so the same thing that happend to att with their 3G network is happening now at verizon with their LTE. Karma sure is a Bitch.

    • Guest

      No one cares you had verizon.

  • Dalton

    This test was taken in almost the middle of nowhere, on the 35 interstate by Hinkley, MN. I don’t understand how, but the speeds i pull were close to the new LTE next gen verizon is working on.

    • chris125

      The less people, the higher the speeds. Those are what many saw when verizon first launched LTE.

  • Jarryd Richards

    First world problems

  • chris125

    Wasn’t LTE supposed to eliminate this? looks like all those new plans still aren’t helping cut down on network congestion

  • Byron C Mayes

    Wait, isn’t this what AT&T was saying a couple of years ago when they were having network issues and Verizon was all “see we’re so much better” and the like?