In a recent episode of Decoder, The Verges podcast, host Nilay Patel sits down with Sowmyanarayan Sampath, the CEO of Verizon Consumer Group, to discuss the intricacies of running one of the largest telecommunications companies in the United States. Sampath, who oversees Verizon Wireless with over 115 million wireless connections and the Fios broadband service with around 10 million connections, has a significant influence over the connectivity of a large portion of the American population.

Sampath, a longtime reader of The Verge and a keen follower of developments in 5G technology and net neutrality, shares insights on major investments made in 5G and whether the purported race against China was worth the effort. He highlights that while 5G has indeed expanded network capacity and facilitated a surge in mobile data usage, the much-hyped promise of robotic surgery and driverless cars has yet to materialize. The mechanics of building network infrastructure are complex and take years, he explains, emphasizing the long-term strategic decisions that govern the telecommunications sector.

The discussion then shifts to the integration of content and applications directly into the network. This approach, previously attempted by major players like AT&T and Verizon during the net neutrality debate, aimed to differentiate various networks. However, these media acquisitions ultimately did not yield the desired results, with Sampath stating that no one cares about net neutrality, a sentiment Patel disagrees with. Furthermore, Verizons staunch opposition to net neutrality regulations stands in contrast to the current administration's more involved regulatory stance, addressing the ongoing investigations regarding diversity, equity, and inclusion (DEI) policies that could hinder Verizons business dealings.

Sampath provides a clear breakdown of the companys structure, highlighting how Verizon Consumer is customer-facing while being supported by a common network infrastructure that serves both business and consumer needs. He discusses the importance of effective operations in managing outages and maintaining network quality, explaining how Verizon invests in technology and infrastructure to enhance user experience.

The conversation dives into the nuances of network capacity and the need for local management. Sampath points out that while Verizon is perceived as having the best network, much of that perception is based on localized experiences rather than nationwide standards. For most people, the network experience is determined by how reliable the service is at home and work, he notes.

On the topic of capital expenditure, Sampath emphasizes the interdependence of the consumer unit and the network team at Verizon. He explains how decisions about where to build network capacity involve a thorough analysis of consumer needs and market share, leading to more informed network investments. Sampath also discusses the adoption of AI and digital tools to enhance customer service, effectively creating a digital twin for every customer to monitor their network performance.

The conversation shifts towards Verizons Fios service, with Sampath expressing excitement about fiber. He notes that Verizon was a pioneer in fiber deployment and is now focusing on expanding its fiber offerings after a period of reallocating resources to 4G and 5G technologies. With plans to grow its fiber reach to 40 million homes, Sampath highlights the profitability and customer satisfaction associated with fiber services.

As the discussion wraps up, Sampath addresses the competitive landscape of telecommunications and the regulatory environment. He acknowledges the ongoing challenges posed by the current FCC administration and the implications for Verizons DEI initiatives. He reiterates the companys commitment to following the rules while also striving for the best talent and operational excellence in a highly competitive market.

Overall, this engaging conversation with Sowmyanarayan Sampath not only touches on the operational challenges and strategic decisions at Verizon but also reflects the broader issues facing the telecommunications industry today.