Verizon Admits Congestion Problems for Its LTE 4G Network in NYC, San Francisco, and Chicago | Stop the Cap! | Web | Scoop.it

Verizon Wireless quietly admitted Tuesday its much-vaunted LTE network is suffering speed slowdowns so serious, some customers in New York, Chicago, and San Francisco are being randomly kicked off Verizon’s 4G network to slower 3G service until congestion eases.

 

Fran Shammo, Verizon’s chief financial officer, volunteered that online video was the likely culprit and he was surprised by usage growth well in excess of what Verizon predicted.

 

Current estimates from the company suggest Verizon’s LTE customers are responsible for 64% of all data traffic on Verizon’s wireless network nationwide. But in large cities, Shammo said traffic numbers are much higher.

 

“There are certain pockets where we’re absolutely going to experience that down tick from the LTE network to 3G because of capacity constraints,” Shammo admitted.

 

The sudden revelation Verizon now has insufficient capacity for its LTE service is a significant reversal for Shammo, who has repeatedly told investors Verizon has enough wireless spectrum for the next 4-5 years.

 

In May 2013, Shammo told investors attending the JPMorgan Global Technology, Media and Telecom Conference:

 

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Via Chuck Sherwood, Senior Associate, TeleDimensions, Inc