Wednesday, August 15, 2018

Verizon Fixed 5G Strategy: Attack Out of Region

Verizon’s strategy for its 5G fixed wireless platform is fairly clear, so far. In its announced first four cities--Indianapolis, Houston, Los Angeles and Sacramento--Verizon is attacking out of its fixed network footprint, and therefore will be competing head to head with AT&T, Comcast and Charter Communications.

One obvious objective is to grow revenue and accounts the “old fashioned way,” by taking market share away from incumbents who already have those accounts, in the fixed network internet access business.

Comcast passes (can actually sell service) about 54 million homes. Charter Communications passes some 50 million home locations.

AT&T’s fixed network passes perhaps 62 million U.S. homes. Verizon, on the other hand, passes perhaps 27 million locations.

What that means is that Verizon has a clear interest in using 5G fixed wireless to expand its addressable market by more than 35 million U.S. homes (up to perhaps 39 million) that it cannot reach today, giving Verizon a fixed network footprint that is comparable to its key rivals.

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