America Online 2015 Annual Report Download - page 7

Wireless revenues
(in billions)
Wireless retail
connections
(in millions)
4G LTE devices
(in millions)
ahead of the rapid increase in wireless
data traffic, about 90percent of which
now rides on the 4G LTE network. In
wireline, customers are taking advan-
tage of the tremendous capacity of
our fiber-to-the-home Fios network,
with more than 70percent of con-
sumer Fios customers subscribing to
speeds of 50 megabits per second or
higher. Our commitment to network
excellence has kept us at the top of
Root Metrics’ rankings of wireless
reliability, speed and network perfor-
mance for five years in a row. Also,
Fios Internet ranked highest among
Internet Service Providers in a recent
J.D. Power survey of customer satis-
faction for three out of four regions of
the country.
By enhancing our networks with
fiber, small cells, in- building systems,
antennas and other capacity- boosting
technologies, we’re not only increas-
ing our ability to meet today’s surging
demand for wireless data and video,
we’re also getting our network ready
for 5G wireless technology. This has
the potential to substantially increase
the throughput and responsiveness of
wireless networks. As we have done
with previous technology shifts in net-
work architecture, Verizon intends to
lead the way to the 5G world and has
already begun to work with technol-
ogy partners to develop the standards
and market applications that will drive
deployment. We expect to conduct
trials of 5G in 2016 and move aggres-
sively to commercial deployment
thereafter. We believe that 5G will
be the foundation for a new wave of
growth and consumer benefits in such
areas as mobile video, smart cities and
other applications under development.
We’ve historically had a two-year
advantage on our competitors when it
comes to network advances, and we’re
investing to make sure that this remains
a source of competitive advantage.
Better matters
One of the most important metrics for
us is customer loyalty. In the wireless
business, this is expressed as the
percentage of customers who leave,
or “churn,” for another carrier every
month. I’m proud to report that our
0.96percent churn rate led the indus-
try in 2015. We see this as evidence
that, in the words of our new brand
campaign, “better matters” — not just
with respect to network quality, but
the entire customer experience.
While there’s no doubt that customers
value what Verizon provides, it’s also
clear that what customers want is
changing rapidly. In particular, millen-
nials — who have now surpassed the
Baby Boomers as the largest segment
of the U.S. population — behave very
differently than traditional customers
when it comes to managing their digital
Verizon
intends to lead
the way to the
5G world.
2013 2014 2015
$81.0 $87.6 $91.7
2013 2014 2015
102.8 108.2 112.1
2013 2014 2015
42.7
67.4
84.4
5
www.verizon.com/2015AnnualReport 2015 Annual Report
Chairman’s letter