Friday, March 12, 2021

Verizon and T-Mobile Have High Hopes for Fixed Wireless

Both Verizon and T-Mobile expect fixed wireless fixed wireless to be key revenue growth drivers over the next several years, and largely for similar reasons. T-Mobile has zero market share in the home broadband business while Verizon has a small geographic footprint and therefore believes it can take out-of-region market share. 


“We expect to cover nearly 15 million homes by the end of this year and expect to reach 30 million homes by the end of 2023, using both 4G and 5G,” said Kyle Malady, Verizon Communications CTO. 


“By the end of 2021, we will have between one million and two million millimeter wave 5G home open for sale and some 15 million in total with the arrival of the first tranche of C-band,” said Ronan Dunne, Group CEO of Verizon Consumer Group. “By the end of 2023, this will have risen to more than 30 million households we can serve.”


T-Mobile also expects to garner seven million to eight million home broadband accounts by 2025. The only issue is which current providers lose that share. 


Assuming $50 monthly revenue, and an annual total of $600, that implies T-Mobile could generate $4.2 billion to $4.8 billion annually from home broadband services within four years. It might be challenging to create that much revenue from new sources any other way, within four years. 


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