Up to five cities targeted for 5G broadband
Verizon (VZ) is set to begin the commercial rollout of its 5G wireless broadband Internet in 2H18, following successful trials in 11 US (SPY) cities in 2017. The company is looking to introduce its super-fast Internet service based on 5G technology in as many as five US cities this year. The company is initially targeting the residential market.
Verizon selected Sacramento, California, as the first city that would receive its 5G wireless Internet service as the company gears up to challenge cable broadband providers.
Verizon set to stir the high-speed Internet market
In Sacramento, Verizon is set to square off with cable companies Comcast (CMCSA) and Frontier Communications (FTR) in the city’s high-speed Internet market. The stock prices of cable broadband providers Comcast, Charter Communications (CHTR), and Altice USA (ATUS) fell on news of the launch of Verizon’s commercial deployment of 5G Internet.
Verizon’s wireless rivals AT&T (T), T-Mobile (TMUS), and Sprint (S) are also working on 5G network deployment. AT&T recently stated that it would expand its 5G network trials to Texas. T-Mobile and Sprint, two wireless carriers that nearly merged last year, are targeting nationwide 5G network deployment by around 2020.
Stimulating top-line growth
Verizon’s revenues increased 2.5% year-over-year to $31.7 billion in 3Q17. The planned commercial rollout of 5G Internet is viewed as part of its effort to stimulate more growth by tapping into the surging demand for high-speed Internet.