Mobile 5G service to go live next month
Verizon (VZ) wanted to be the first to market with 5G services in the United States, and it was. The company launched fixed 5G services in four cities in October last year. Its rival AT&T (T) followed a few months later with the launch of 5G services in 12 cities in December. The company’s recent announcement makes it clear why the company has all along sought to lead the 5G rollout race. The operator recently said it will take its 5G service to more cities, Chicago and Minneapolis to be exact. In these two cities, Verizon will provide mobile 5G plans. Initially, residents of Chicago and Minneapolis will be able to connect to Verizon’s mobile 5G network using Motorola’s Moto Z3 smartphone. Support for more smartphones is expected considering that Verizon last year placed orders for 5G phones with Samsung (SSNLF).
Verizon to earn more with 5G mobile plans
Verizon’s mobile 5G service will go live in Chicago and Minneapolis on April 11. What stands out from Verizon’s mobile 5G launch is that it will create an opening for the company to make more money from its wireless service, which may explain the company’s attempt to rush the rollout of its 5G network. According to Verizon, its mobile 5G plans will cost $10 more than its current 4G plans. Verizon’s base 4G unlimited plan starts at $75 a month. A similar plan would cost $85 a month on 5G. The benefit to customers is that while Verizon’s current 4G unlimited plans come with some data usage restrictions, 5G plans will be truly unlimited.
Verizon’s revenue rose less than 1.0% YoY to $34.3 billion in the fourth quarter. Revenue rose 15% YoY for AT&T, 6.4% YoY for T-Mobile (TMUS), and 4.4% YoY for Sprint (S) in that quarter.