FWA, MEC and private networks are key to Verizon 5G monetization plan
While discussions among operators focus on monetizing massive investments in 5G networks, Verizon today held an investor event detailing how it sees its network creating new service revenues in the near term. The top drivers of revenue growth identified by executives include wired wireless internet at home, premium and cost-effective 5G mobility, mobile edge computing (MEC), and other B2B solutions such as IoT and private networks. And those are opportunities that will scale as Verizon expands C-Band 5G coverage to 175 million people by the end of the year.
On the revenue side, Verizon estimates service and other revenue growth this year at 3%, “at least” 3% in 2023 and 4% in 2024 and beyond. CFO Matt Ellis also puts this in the context of capital intensity falling below 12% by 2024 when the initial C-Band build is complete, equating to higher free cash flow.
CEO Hans Vestberg said Verizon has redefined itself in recent years, leading to a much larger addressable market than in the past. “Hope you get a feel for the things and actions we’re taking…how we’ve redefined Verizon, put Verizon’s intelligent edge network as the foundation, put network-as-a-service on top of it.” , and then the five growth vectors that lead to the financial liabilities.”
Regarding 5G-supported FWA, Verizon said it plans to reach 50 million homes and 14 million businesses by the end of 2025 and have 4 million to 5 million FWA subscribers. Its long-term goal is to become a nationwide broadband provider and FWA’s second-largest contributor to revenue growth behind mobility.
For private networks, Verizon announced this week that it was building a system for BlackRock’s headquarters in New York City’s Hudson Yards, and announced a turnkey solution that was co-marketing with Celona. This is aimed at small and medium-sized businesses looking for fast time-to-value.
In addition to private networks, other B2B solutions such as private MEC and IoT will also contribute to new revenue growth, Verizon said. “We are scaling and growing private networks that serve as gateways to private edge computing capabilities and solutions,” CFO Matt Ellis told investors. “We are in an excellent position to drive the market.”
This post Verizon sees five vectors for 5G service revenue growth
was original published at “https://www.rcrwireless.com/20220303/carriers/verizon-sees-five-vectors-for-5g-service-revenue-growth”