Verizon plans to extend 5G fixed wireless access (FWA) to cover 90 million homes by 2028
FWA now generates more than $550 million in revenue per quarter
By the end of 2024, Verizon expects to cover 70% of its planned footprint with C-band 5G
Verizon said that it will use 5G mid-band C-band spectrum – as well as high-band millimeter wave (mmWave) spectrum – to double its fixed wireless access (FWA) service footprint to 90 million homes and businesses covered by 2028.
CEO Hans Vestberg said on its third-quarter earnings call that the plan was “mobility first” focused on using the 3.7 GHz C-band to expand the FWA offering out from urban city environments to suburban and rural areas in the United States. This is obviously because the C-band spectrum offers far greater coverage than 28 GHz mmWave spectrum, but mmWave is also in Verizon's FWA playbook for multi-dwelling units (MDUs).
“The fixed wireless access is generating more than $550 million in revenue,” Vestberg said, noting that the service started three years ago.
Joe Russo, EVP of global technology, said Verizon is dedicated to building out its “shared multiple purpose network” and that Verizon is “planning an acceleration of our ultra wideband [C-band/mmWave] footprint. I expect that by the end of this year, we’ll have covered 70% of our planned footprint.”
Russo noted that by the end of 2025, this expansion should cover 80% to 90% of Verizon’s planned footprint. The great majority of that will be covered by C-band, given the coverage limitations of mmWave spectrum.
By the numbers
Verizon's net income declined to $3.4 billion from $4.9 billion a year ago for the quarter due to $1.7 billion in severance charges . Total wireless service revenue was $19.8 billion, up 2.7% year over year. Operating revenue was flat at $33.3 billion.
At the end of Q3, the operator had almost 4.2 million fixed wireless subscribers . The operator had reached its fixed wireless subscriber target 15 months ahead of schedule, Vestberg noted.
Verizon now expects to serve 8 million to 9 million FWA subscribers by 2028.
5G's silver lining
“They’re obviously bullish on fixed wireless. That’s been the silver lining in 5G deployments,” commented Roy Chua, principal analyst at AvidThink.
It’s clear that Verizon is chasing this strategy with its C-band spectrum, Chua noted.
“Fundamentally doubling down on fixed wireless is a good thing,” he said. He noted that Verizon is “paying” for its “early investment in millimeter wave” as well as for promoting edge computing before the technology was really ready.