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Cellular Phone Forum / Providers / Verizon / November 2003

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Could WLNP really hurt VZW in the Long Run??

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,.?*`~ Adam ~`*?., - 30 Nov 2003 04:10 GMT
    Let me pre curse what I'm about to say.  I am a current
Verizon subscriber and have been so since 1997 when they were Cellular
One here in MI.  This is in no way a troll message or anything.  It's
just a different side to WLNP that I wonder if anyone else has taken a
look at.

    I was just wondering if WLNP could really hurt Verizon in the
end.  Verizon has consistently had the best Network out there for
years.  I think one reason for their positive service is their
relatively low subscriber base.  They have never really offered the
"Best" package of minutes out there.   You are able to go to other
services and get more minutes and many people have taken advantage of
that.  With these other companies offering more minutes, this has
overloaded their networks and caused a lot of dropped calls etc.
    With several wireless subscribers trending to switch to
Verizon because of their strong network, could this surge of new
clients cause Verizon to dread what they have avoided all these years.
An overloaded network with customers concerned about dropped calls
because they are know for such a "Strong network".  

    This is just a different view I thought I would throw out
there to what has been going on lately.  I hope the above never
happens, but I suppose it is a possibility.
Scott Stephenson - 30 Nov 2003 04:52 GMT
> Let me pre curse what I'm about to say.  I am a current
> Verizon subscriber and have been so since 1997 when they were Cellular
[quoted text clipped - 19 lines]
> there to what has been going on lately.  I hope the above never
> happens, but I suppose it is a possibility.

Relatively low subsciber base?  33 million and growing is not small by
anyone's standards.
Andrew - 30 Nov 2003 04:56 GMT
: Relatively low subsciber base?  33 million and growing is not small by
: anyone's standards.

Ditto.  They are the largest wireless company in the US, right?

Andrew
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Aboutdakota - 30 Nov 2003 07:12 GMT
> : Relatively low subsciber base?  33 million and growing is not small by
> : anyone's standards.
>
> Ditto.  They are the largest wireless company in the US, right?

Which company actually has the largest native coverage area?  Verizon
Wireless claims to be the "largest", but that could be subscriber count.

AD
RichardMNixon, Jr. - 30 Nov 2003 14:03 GMT
Adam could have a point though.  The question is not who has the largest
subscriber base in sheer total numbers. Verizon does, but that is spread
over much of the country.  The real issue I think he is raising is if
Verizon now effectively has the lowest density of subscribers in each cell
it serves and then people move to it, the density per cell increases and
quality degrades.  I am not convinced, though that it has the lowest density
per cell.  It would be interesting to take the number of subscribers of
Verizon and  each one of the other CDMA carriers and divide it by their
total number of publicly reported cell sites to get the average subscribers
per cell.  Maybe I am wrong, but I am not sure it would make sense to
compare them with the GSM, TDMA carriers, because the effective geographic
coverage by a cell site might be different.

> > : Relatively low subsciber base?  33 million and growing is not small by
> > : anyone's standards.
[quoted text clipped - 5 lines]
>
> AD
RichardMNixon, Jr. - 30 Nov 2003 15:27 GMT
I have been looking at SEC filings, web sites, FCC, etc. but cannot find the
number of cell sites for each carrier in total to compute the number of
subscribers per cell site. Does anyone know where I can easily get the total
number of cell sites for each wireless carrier?  If you point me to it I
will try to calculate the subscribers per cell site for each carrier and
post it here.

> Adam could have a point though.  The question is not who has the largest
> subscriber base in sheer total numbers. Verizon does, but that is spread
[quoted text clipped - 18 lines]
> >
> > AD
Patrick Bosley - 30 Nov 2003 16:16 GMT
> I have been looking at SEC filings, web sites, FCC, etc. but cannot find the
> number of cell sites for each carrier in total to compute the number of
> subscribers per cell site. Does anyone know where I can easily get the total
> number of cell sites for each wireless carrier?  If you point me to it I
> will try to calculate the subscribers per cell site for each carrier and
> post it here.

You'd still be comparing Apples and Oranges as different carriers use
different technologies at different frequencies.
RichardMNixon, Jr. - 30 Nov 2003 17:25 GMT
Good point.

> > I have been looking at SEC filings, web sites, FCC, etc. but cannot find the
> > number of cell sites for each carrier in total to compute the number of
[quoted text clipped - 5 lines]
> You'd still be comparing Apples and Oranges as different carriers use
> different technologies at different frequencies.
Scott Stephenson - 30 Nov 2003 15:37 GMT
> Adam could have a point though.  The question is not who has the largest
> subscriber base in sheer total numbers. Verizon does, but that is spread
[quoted text clipped - 8 lines]
> compare them with the GSM, TDMA carriers, because the effective geographic
> coverage by a cell site might be different.

All good points.  I've never seen numbers that identified ideal traffic
metrics for the various protocols, and I would be suspect of any numbers
that covered all protocols.  Keeping this in mind, I do know that both
Verizon and Nextel claim to serve areas of the country where about the same
number of people reside and work (I want to say they both are in the 220
million range, IIRC), and I'm sure some of the others would claim a number
that is close to this.  Unless Verizon has built a lot of redundancy in to
the network (meaning areas served by more than one tower), being the largest
would seem to indicate that their customer density would be larger than at
least Nextel's, and probably most of the others.
Aboutdakota - 30 Nov 2003 21:26 GMT
>>Which company actually has the largest native coverage area?  Verizon
>>Wireless claims to be the "largest", but that could be subscriber count.

I should have been more clear on this statement.  I was wondering which
wireless carrier has the largest native coverage *area* (meaning the
most square miles covered by their own infrastructure, not and not thier
roaming partners').  I would guess it would be between Verizon,
Cingular, or AT&T...

==AD
CK - 30 Nov 2003 16:01 GMT
I read somewhere that the 1X upgrade doubled their voice capacity.  Does
this sound correct?  If it is, all those new people coming to Verizon will
be buying new 1X phones and most of the people leaving will probably be
using older equipment.  I think that Verizon is in the best position as far
as customers and cap ex to keep expanding their network.  That being said,
there is a finite amount of spectrum which I think is going to be a catalyst
to the next round of mergers.  Any thoughts?

> Let me pre curse what I'm about to say.  I am a current
> Verizon subscriber and have been so since 1997 when they were Cellular
[quoted text clipped - 19 lines]
> there to what has been going on lately.  I hope the above never
> happens, but I suppose it is a possibility.
Patrick Bosley - 30 Nov 2003 16:15 GMT
> I read somewhere that the 1X upgrade doubled their voice capacity.  Does
> this sound correct?  If it is, all those new people coming to Verizon will
[quoted text clipped - 3 lines]
> there is a finite amount of spectrum which I think is going to be a catalyst
> to the next round of mergers.  Any thoughts?

Verizon is ==> perceived <== as having the most coverage and best
customer service. It alreday had a low churn rate, and is widely
expected to be a "winner" from WLNP.
babaloo - 30 Nov 2003 18:32 GMT
I think we are all missing the point of the original question--  at what
point (when?) will an increase in the # of subs degrade the VZW network?

> > I read somewhere that the 1X upgrade doubled their voice capacity.  Does
> > this sound correct?  If it is, all those new people coming to Verizon will
[quoted text clipped - 7 lines]
> customer service. It alreday had a low churn rate, and is widely
> expected to be a "winner" from WLNP.
Patrick Bosley - 30 Nov 2003 18:43 GMT
> I think we are all missing the point of the original question--  at what
> point (when?) will an increase in the # of subs degrade the VZW network?

Irrelevent question. Verizon has 4 Billion dollars budgeted for
2004 for Cellular Infrastructure improvements. So you're talking about a
moving target.
N9WOS - 30 Nov 2003 19:06 GMT
> > I think we are all missing the point of the original question--  at what
> > point (when?) will an increase in the # of subs degrade the VZW network?
>
> Irrelevent question. Verizon has 4 Billion dollars budgeted for
> 2004 for Cellular Infrastructure improvements. So you're talking about a
> moving target.

Don't you mean that the coverage is a moving target? :-)

With the cell shrinking effect of CDMA, every
extra user that makes a call with his phone will
cause the coverage area to shrink a little more.

The people in the cities will not notice a difference,
but the people on the fringe areas will definitely notice.
Scott in Aztl?n - 30 Nov 2003 19:22 GMT
On Sun, 30 Nov 2003 04:10:44 GMT, ",.·*`~ Adam ~`*·.," <i.hate@spammers.com>
wrote:

>    I was just wondering if WLNP could really hurt Verizon in the
>end.  Verizon has consistently had the best Network out there for
[quoted text clipped - 3 lines]
>clients cause Verizon to dread what they have avoided all these years.
>An overloaded network with customers concerned about dropped calls

There's one really easy way for VZW to avoid this: DON'T OVERSELL THE SERVICE!

If they stop signing up new customers when the system's current capacity is
reached, there'll be no problem.

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Sterling - 30 Nov 2003 22:23 GMT
The network is NOWHERE near capacity though! And when certain areas begin to
hit a level where service begins to deteriorate.. Verizon can go in and add
another CDMA Carrier, or increase the backhaul to allow CDMA to connect more
calls.

> On Sun, 30 Nov 2003 04:10:44 GMT, ",.?*`~ Adam ~`*?.,"
<i.hate@spammers.com>
> wrote:
>
[quoted text clipped - 10 lines]
> If they stop signing up new customers when the system's current capacity is
> reached, there'll be no problem.
N9WOS - 30 Nov 2003 22:32 GMT
> The network is NOWHERE near capacity though! And when certain areas begin to
> hit a level where service begins to deteriorate.. Verizon can go in and add
> another CDMA Carrier,

You would think that they already have all the available spectrum
partitioned out
into CDMA carriers..
So, to add another CDMA carrier, you would have to get more spectrum,
Or shut off the AMPS system on 800Mhz, which they can't
do until 2008.

>or increase the backhaul to allow CDMA to connect more
> calls.

When you do that, the loading will make the coverage
look more like a poke-a-dot shirt than a solid map,
as a result of cell shrinking.
 
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