Verizon eyes at least two 5G markets in California
Verizon (VZ) is looking to launch commercial 5G (fifth-generation) services in at least four US markets before the end of the year, according to CEO Lowell McAdam in his recent interview with CNBC. Verizon initially said it was planning to roll out 5G services in three to five markets in 2018. It named Sacramento, which is California’s capital, as the first market to get the service. It recently added Los Angeles to the list for 2018.
A billion 5G subscribers by 2023
For its 5G launch in Sacramento, Verizon is getting equipment and technology from Samsung (SSNLF). It’s also partnering with Ericsson (ERIC). According to Ericsson, there will be a billion 5G subscribers globally by the end of 2023. Verizon will initially roll out its fixed 5G services with plans to deploy wireless 5G services later. T-Mobile (TMUS) is eyeing a nationwide 5G rollout by 2020. Verizon’s archrival AT&T (T) is aiming to launch 5G services in 12 markets this year.
Samsung recently obtained approval from US regulators to supply Verizon with fixed 5G equipment for the proposed 5G launch in Sacramento.
5G expected to expand the market
The arrival of 5G is expected to enlarge the addressable market for operators such as Verizon. For example, the faster speed of 5G networks is expected to fuel consumption of online videos, thereby driving demand for Internet data.