Verizon Communications promises 5G for 100 million customers

Wireless provider Verizon Communications Inc. (VZ) has announced that 5G connectivity will soon be available to approximately 100 million Americans. The support of the new communication standard will open the company’s entry into the home Internet market, where it may even displace existing leaders. 

Recall that Verizon Communications, in March last year, acquired the right to the C-band (necessary for the deployment of 5G) for almost $ 53 billion. Some shareholders considered the expenses too high and unjustified. However, the company has proved that this investment was significant for long-term growth and strengthening positions in the wireless market. As a result, Verizon Communications intends to make 5G communications available to 100 million Americans in the coming weeks. 

At the same time, the company intends to offer 5G Home Internet services for just $50 per month, which is almost twice lower than the price for fiber-optic communication. Thus, the operator becomes a serious competitor to traditional fiber-optic communication providers. Despite the ever-increasing speed of the mobile Internet, before the advent of 5G, wireless networks could not compete with cables. Now the situation is radically changing. 

Verizon Communications initially planned to offer fixed coverage to 50 million Americans only by 2025, but it seems that it could significantly exceed its plan. Offering home Internet will be a severe growth driver for Verizon Communications, although it will add to its need for additional competition. 

In addition, adding home Internet services to the portfolio may also give Verizon Communications an incentive to combine several services. For example, a package includes cellular subscriptions, home Internet, and access to streaming video services.