Can Verizon's Network Handle Unlimited Data?

Can Verizon's Network Handle Unlimited Data?

After blowing away expectations with its second-quarter earnings report, Verizon (NYSE: VZ) showed the strength of its brand and network are still well intact. Given the option between unlimited plans from all four major carriers, customers increasingly chose Verizon's network. It managed to add over 600,000 postpaid customers and over 350,000 phone customers, specifically.

While not the most in the industry -- that title still belongs to T-Mobile (NASDAQ: TMUS) -- it's a big step up from last year and the previous quarter. And it points to both the success and the importance of Verizon's unlimited data plan, which it unveiled in February.

But Verizon is taking steps to moderate the amount of data on its network. It's launching a new, less expensive plan ($75 per month for a single line) that throttles video quality down to 480p. Subscribers that want high-definition video can opt for a more expensive plan ($85 per month), but even then, they're limited to 720p on phones and 1080p on tablets. This is just another sign that Verizon is having trouble keeping up with the data demands of its customers.

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Source: Fool.com