Verizon to launch 5G service
Verizon (VZ) is scheduled to roll out its 5G (fifth-generation) fixed wireless broadband Internet services in October in five markets. It conducted several trials in US markets in 2017.
Notably, Verizon was the first carrier to launch a 4G (fourth-generation) LTE (Long-Term Evolution) network nationwide six years ago. Currently, it has rolled out new uses for its 4G network, including connected vehicle and fleet, Internet of Things, and smart-city services, in order to stay ahead of the competition with its smaller rivals.
Verizon competing for customers
Competition for a larger mobile customer base has become fierce among telecommunications rivals since it determines a mobile carrier’s performance. Verizon has been consistently focusing on improving its network to add more customers by offering various unlimited plans and adding other perks such as free TV streaming.
In the second quarter, Verizon, the largest wireless network provider in the United States, added a significant number of postpaid customers, but it was less than Q2 2017. It lost prepaid customers. Postpaid customers are considered more profitable than prepaid customers.
In comparison, T-Mobile (TMUS) has rolled out many Un-carrier plans to attract customers. Those plans have increased postpaid subscriber growth. In the second quarter, it added more postpaid phone net additions than the combined net additions of Verizon, Sprint (S), and AT&T (T). It added 686,000 branded postpaid phone subscribers, while AT&T, Verizon, and Sprint reported postpaid phone net additions of 46,000, 531,000, and 87,000, respectively, in their quarters ended in June 2018.
Amid competition to grow its customer base, Verizon’s game-changer launch of 5G Internet service could bring more customers to the network provider and could reportedly help supplement its wireless business growth. In the second quarter, Verizon achieved year-over-year wireless revenue growth of 4.7%, which marks growth for three consecutive quarters after declining for the past two years. However, its wireline revenues decreased 3.4% in the quarter.