It isn’t often that a carrier acknowledges problems on its network, but that’s exactly what Verizon Wireless has done this week.
The carrier says an increase in subscriber numbers is putting pressure on its wireless network, particularly in large cities and it’s impacting quality of service, CNET reports.
“There are certain pockets where we’re absolutely going to experience that downtick from the LTE network down to 3G because of capacity constraints,” Shammo said at an investor conference on Tuesday.
Verizon has the largest and longest running LTE network as well as the most customers using it. Even though LTE customers only consist of about a third of Verizon’s total base, they still use up 64 percent of data traffic. That percentage is even higher in big cities, Shammo said.
He admits that Verizon was surprised just how significant of an impact video traffic would have on the network. But the company is working to rectify that, increasing capex by $500 million, as well as activating more spectrum and building up network capacity.
“By the end of this year you are going to see all those issues dissipate,” Shammo said, according to the CNET story. ”And then going into next year we will be ahead of the curve again.”
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