Free Essay on Technicality and Economic Efficiency of 4G LTE

Published: 2023-01-28
Free Essay on Technicality and Economic Efficiency of 4G LTE
Type of paper:  Essay
Categories:  Finance Technology Audit Financial management
Pages: 4
Wordcount: 902 words
8 min read

Fixed and Variable costs

Fixed costs are always constant despite differences in output. Variable costs, on the other hand, are costs which vary with changes in production. Some of Verizon's fixed costs include buildings, salaries, utilities, insurance, property taxes, rents, and machinery. Variable costs include raw materials, production supplies, salespersons commissions, direct labor rates, and billable staff wages.

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Technicality and economic efficiency

Verizon Wireless has IPv4 and IPv6, which helps the users connect their devices easily, thus making the technicality of the company so efficient ("Strategies, 20116). Vezron's IP Multimedia Subsystem (IMS) network serves together as the foundation of company's 4G LTE network and avails the space for development and employment of advanced services and features that work with the advantage of 4G LTE. The company's eHRPD helps in network management, deployment and improving the performance by; minimizing dropped data period, reducing handover delay between eHRPD and LTE, and keeping constant IP address of EV-DO from LTE. Verizon Wireless is economically efficient. It has significantly enhanced the performances of various businesses by providing them with an efficient network. In health systems, 4G LTE services provide remote care. Practitioners and caregivers use remote care to offer multiple services to their patients. Physicians can develop management and home-monitoring programs for patients with adverse conditions like heart failure and diabetes. 4G LTE is also used in fleet management. Fleet managers equip their vehicles with this network for easy download of large files and data. The system also helps in the management of driver schedules, fuel and vehicle consumption, and operational reports. For financial operations, the network affect the functioning of vending machines and ATMs. These machines are 4G LTE enabled in areas with high traffic, concerts, sports events, and mobile markets. The network makes the bank services readily accessible even in remote areas.

Economies and Diseconomies of Scale

Just like most operating companies, Verizon experiences economies and diseconomies of scale (Verizon, n.d). Economies of scales are increased revenue caused by an additional level of production. Diseconomies of size, on the other hand, are losses brought about by increased production. In 2014, the company gained economies of scale amounting to $ 0.7%, which resulted in the expansion of Fios services. The increase in the production of the services ensured that the company attained extra revenue. However, in 2015, the company, after continued increasing of the output suffered diseconomies of scale. The wholesale income reduced by $ 0.2 billion after decreased sales. Other than those two cases, the company has sustained economies and diseconomies of scale from time to time.

Economies of Scope

The wireless company network occasionally experiences economies of scope. It happens when the total cost of production reduce after an increase in the level of production. Increased production means increased sales revenue. Economies of scale occur when the company contemporary produce while focusing on its core competency. For instance, in 2015, the cost of production was significantly reduced by decreased service costs. The expenses which exclude a recurrent device installment increased by $2.2 billion (Verizon, 2015). The reduced costs of production came after a significant increase in the volume of production. During the year, the 4G LTE network had a breakthrough in sales and installation. Various companies acquired the system for different services. The massive output meant using fewer resources to produce more. This is because some equipment did not change for the production of various services. The equipment also did not require additional maintenance.

Cost Control

Verizon Wireless effectively use technology to control costs. The company chose LTE as its foundation network due to its comprehensive coverage. Besides, Verizon believes that LTE has many business and technological advantages over other communication networks. It is these advantages that make the system superior over others. Verizon customers are always connected to the speedy network which provides all the benefits offered by wired networks. Customers cut costs in communication and other services like uploading, downloading, social networking, and live streaming, among other services. 4G LTE network sets a pace for other wireless networks. The company has also equipped the system with improvement services like packet latency, packet loss, and rate of transmission, which contribute to reduced costs.

Strategies to Maximize Revenue

Verizon has grown significantly over the years. However, there are various strategies it can apply to reduce costs and maximize profits or revenue (Scuderi, 2012). One of the strategies is cutting supply costs. The company can inform their suppliers that they are cutting down their cost of supply. That way, the company can work with the few suppliers willing to supply with their prices. Another strategy is reducing the costs of production. This can be done by making use of leftover materials and recycling some materials. Verizon can also lower their financial expenditures. This can be achieved by reevaluating its expenditure mode and ensure that there are no extra or unnecessary costs incurred. Finally, the company can improve its technology features. Technological features which would maximize profits without incurring many expenses would be harnessed for the benefit of the company.


Scuderi, R. (2012, June 19). 10 Simple Ways to Cut Business Costs. Retrieved from

Strategies to improve profit. (2016, 21). Retrieved from

Verizon. (2015). Verizon Communications Inc and subsidiaries. Retrieved from

Verizon. (n.d.). The Verizon Wireless 4G LTE Network: Transforming Business with Next-Generation Technology.

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