Verizon's 4G Spending Continues

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Generally speaking, the upgrades to 4G networks have been a huge win for telecom companies like Verizon and consumers alike.

However, the rollout hasn't necessarily gone smoothly for Verizon, as a recent move from the telecom giant illustrated.

Source: Verizon


Because of its massively improved performance, 4G is a cellular data users' dream. And as we've seen since companies like Verizon have launched their 4G networks, consumers have responded to the supercharged download speeds by consuming more data over their wireless devices than ever before.

Spend money to make money
Verizon and other cellular service providers have gone to great lengths to ensure that 4G will be a profitable endeavor for them, which is certainly encouraging for their investors.

This is great for Verizon shareholders, as many of the largest U.S. telecom providers have shifted their contracts to charge for data usage. More streaming and downloading means more dollars and cents for Verizon. However increased usage also puts some pretty serious strain on these networks, as Verizon recently discovered.

In this video, tech and telecom analyst Andrew Tonner looks at some of the recent moves Verizon has had to make in order to reinforce its massively popular 4G service and the costs that have accompanied them.

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The article Verizon's 4G Spending Continues originally appeared on Fool.com.

Fool contributor Andrew Tonner has no position in any stocks mentioned. Follow Andrew and all his writing on Twitter at @AndrewTonner. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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