Verizon updates broadband strategy to bring more choice, flexibility and value to millions
Verizon (NYSE, Nasdaq: VZ) has updated its broadband strategy, announcing new goals for fixed wireless subscribers, household targets, and broadband offerings. The company aims to double its fixed wireless subscribers to 8-9 million by 2028, expanding coverage to 90 million households. Verizon's fiber network is expected to grow to 35-40 million passings over time, bolstered by its planned acquisition of Frontier.
Key highlights include:
- Verizon reached its fixed wireless access subscriber target 15 months ahead of schedule
- The company had nearly 4.2 million fixed wireless subscribers at the end of Q3 2024
- Verizon plans to commercially launch an advanced mmWave solution for high-population areas
- The Frontier acquisition is expected to bring in 9-10 million fiber passings
- Verizon targets up to 650,000 annual Fios builds in 2025, potentially increasing to 1 million or more after the Frontier acquisition
The company maintains its capital allocation priorities, expecting capital expenditures of $17.5-$18.5 billion for 2025.
Verizon (NYSE, Nasdaq: VZ) ha aggiornato la sua strategia di banda larga, annunciando nuovi obiettivi per gli abbonati a wireless fisso, target per le abitazioni e offerte di banda larga. L'azienda punta a doppiare gli abbonati a wireless fisso a 8-9 milioni entro il 2028, espandendo la copertura a 90 milioni di abitazioni. Si prevede che la rete in fibra di Verizon cresca fino a 35-40 milioni di passaggi nel tempo, sostenuta dalla pianificata acquisizione di Frontier.
I punti essenziali includono:
- Verizon ha raggiunto il suo obiettivo di abbonati all'accesso wireless fisso con 15 mesi di anticipo
- L'azienda aveva quasi 4,2 milioni di abbonati a wireless fisso alla fine del Q3 2024
- Verizon prevede di lanciare commercialmente una soluzione avanzata mmWave per aree ad alta densità di popolazione
- L'acquisizione di Frontier dovrebbe portare 9-10 milioni di passaggi in fibra
- Verizon mira a costruire fino a 650.000 Fios all'anno nel 2025, potenzialmente aumentando a 1 milione o più dopo l'acquisizione di Frontier
L'azienda mantiene le sue priorità di allocazione del capitale, prevedendo spese in conto capitale di $17,5-$18,5 miliardi per il 2025.
Verizon (NYSE, Nasdaq: VZ) ha actualizado su estrategia de banda ancha, anunciando nuevos objetivos para suscriptores de wireless fijo, metas de hogares y ofertas de banda ancha. La compañía tiene como objetivo duplicar sus suscriptores de wireless fijo a 8-9 millones para 2028, expandiendo la cobertura a 90 millones de hogares. Se espera que la red de fibra de Verizon crezca hasta 35-40 millones de accesos con el tiempo, respaldada por su adquisición planeada de Frontier.
Los aspectos más destacados incluyen:
- Verizon alcanzó su objetivo de suscriptores de acceso wireless fijo 15 meses antes de lo previsto
- La compañía tenía casi 4.2 millones de suscriptores de wireless fijo al final del Q3 2024
- Verizon planea lanzar comercialmente una solución avanzada mmWave para áreas de alta población
- Se espera que la adquisición de Frontier aporte 9-10 millones de accesos de fibra
- Verizon tiene como objetivo hasta 650,000 construcciones anuales de Fios en 2025, que potencialmente pueden aumentar a 1 millón o más después de la adquisición de Frontier
La compañía mantiene sus prioridades de asignación de capital, esperando gastos de capital de $17.5-$18.5 mil millones para 2025.
버라이존(뉴욕증권거래소, 나스닥: VZ)은 고정 무선 가입자를 위한 새로운 목표, 가정 목표 및 브로드밴드 제공을 발표하며 브로드밴드 전략을 업데이트했습니다. 회사는 2028년까지 고정 무선 가입자를 800만~900만으로 두 배로 늘리는 것을 목표로 하고 있습니다, 9천만 가구로의 커버리지를 확장합니다. 버라이존의 섬유 네트워크는 시간이 지나면서 3천500만~4천만 가구에 도달할 것으로 예상됩니다, 이는 프런티어의 계획된 인수에 의해 강화됩니다.
주요 하이라이트는 다음과 같습니다:
- 버라이존은 고정 무선 접근 가입자 목표를 15개월 앞서 도달했습니다
- 회사는 2024년 3분기 말 기준으로 거의 420만 명의 고정 무선 가입자를 보유하고 있었습니다
- 버라이존은 인구 밀집 지역을 위한 고급 mmWave 솔루션을 상업적으로 출시할 계획입니다
- 프런티어 인수는 900만~1천만 개의 섬유 패스를 가져올 것으로 예상됩니다
- 버라이존은 2025년에 최대 65만 건의 연간 파이오스 건설을 목표로 하고 있으며, 프런티어 인수 이후 100만 건 이상으로 증가할 수 있습니다
회사는 자본 할당 우선 순위를 유지하며, 2025년 자본 지출이 175억~185억 달러에 이를 것으로 예상하고 있습니다.
Verizon (NYSE, Nasdaq: VZ) a mis à jour sa stratégie de bande large, annonçant de nouveaux objectifs pour les abonnés sans fil fixes, des cibles pour les foyers et des offres de bande large. L’entreprise vise à doubler ses abonnés sans fil fixes à 8-9 millions d'ici 2028, en élargissant la couverture à 90 millions de foyers. Le réseau de fibres de Verizon devrait croître pour atteindre 35-40 millions de foyers desservis avec le temps, soutenu par l'acquisition prévue de Frontier.
Les points clés comprennent :
- Verizon a atteint son objectif d'abonnés à l'accès sans fil fixe avec 15 mois d'avance
- La société comptait près de 4,2 millions d'abonnés à un accès sans fil fixe à la fin du T3 2024
- Verizon prévoit de lancer commercialement une solution avancée mmWave pour des zones à forte densité de population
- L'acquisition de Frontier devrait apporter 9-10 millions de foyers desservis en fibre
- Verizon vise jusqu'à 650 000 constructions Fios par an en 2025, pouvant potentiellement atteindre 1 million ou plus après l'acquisition de Frontier
L'entreprise maintient ses priorités d'allocation de capital, prévoyant des dépenses en capital de 17,5 à 18,5 milliards de dollars pour 2025.
Verizon (NYSE, Nasdaq: VZ) hat seine Breitbandstrategie aktualisiert und neue Ziele für feste drahtlose Abonnenten, Haushaltsziele und Breitbandangebote angekündigt. Das Unternehmen strebt an, die Anzahl der festen drahtlosen Abonnenten bis 2028 auf 8-9 Millionen zu verdoppeln und die Abdeckung auf 90 Millionen Haushalte zu erweitern. Es wird erwartet, dass das Glasfasernetz von Verizon im Laufe der Zeit auf 35-40 Millionen Anschlüsse wächst, unterstützt durch die geplante Übernahme von Frontier.
Wichtige Highlights sind:
- Verizon hat sein Ziel für Abonnenten des festen drahtlosen Zugangs 15 Monate früher erreicht
- Das Unternehmen hatte Ende Q3 2024 fast 4,2 Millionen feste drahtlose Abonnenten
- Verizon plant den kommerziellen Start einer fortschrittlichen mmWave-Lösung für stark besiedelte Gebiete
- Die Frontier-Übernahme wird voraussichtlich 9-10 Millionen Glasfaseranschlüsse bringen
- Verizon verfolgt das Ziel von bis zu 650.000 Fios-Neubauten im Jahr 2025, die nach der Frontier-Übernahme möglicherweise auf 1 Million oder mehr steigen könnten
Das Unternehmen hält an seinen Prioritäten für die Kapitalzuweisung fest und rechnet für 2025 mit Investitionsausgaben in Höhe von 17,5 bis 18,5 Milliarden US-Dollar.
- Fixed wireless subscribers expected to double to 8-9 million by 2028
- Fiber network expected to expand to 35-40 million passings over time
- Fixed wireless access subscriber target reached 15 months ahead of schedule
- Total broadband connections up nearly 16% year over year to 11.9 million
- Fixed wireless subscribers increased by nearly 57% year over year to 4.2 million
- Planned acquisition of Frontier to bring in 9-10 million fiber passings
- Targeting up to 650,000 annual Fios builds in 2025, potentially increasing to 1 million after Frontier acquisition
- Capital expenditures expected to be $17.5-$18.5 billion for 2025
Insights
Verizon's updated broadband strategy represents a significant shift in the telecom landscape. The company's aggressive expansion of both fixed wireless access (FWA) and fiber networks demonstrates a multi-pronged approach to capture a larger share of the broadband market.
Key points to consider:
- FWA subscriber target of 8-9 million by 2028, doubling the current base, indicates strong confidence in this technology's potential.
- Expansion to 90 million households for FWA coverage by 2028 is ambitious and could reshape the competitive dynamics in many markets.
- The planned Frontier acquisition will significantly accelerate Verizon's fiber footprint, potentially reaching 35-40 million passings over time.
- The combined strategy aims to leverage both wireless and wireline technologies, providing flexibility in network deployment and service offerings.
This strategy positions Verizon to compete more effectively against cable operators and other telecom providers, potentially leading to increased market share and revenue growth in the broadband sector. However, the success will depend on execution, particularly in integrating Frontier's assets and maintaining network quality across both FWA and fiber platforms.
Verizon's updated broadband strategy has significant financial implications:
- The accelerated FWA subscriber growth (
57% YoY) suggests strong revenue potential in this segment. - Capital expenditures for 2025 are projected at
$17.5-$18.5 billion , maintaining historical capital intensity levels despite ambitious expansion plans. - The revised net unsecured debt to adjusted EBITDA ratio target of 2.0 to 2.25x indicates a focus on financial discipline alongside growth initiatives.
- The Frontier acquisition, while expanding Verizon's fiber footprint, will require careful integration to realize synergies and avoid dilution.
Investors should monitor the execution of this strategy, particularly the balance between growth investments and maintaining the "industry-leading dividend." The success of this plan could lead to improved free cash flow and potentially higher shareholder returns over time. However, the competitive landscape and potential regulatory challenges in the broadband market remain key risk factors to consider.
Key Takeaways:
- Verizon reaches fixed wireless access subscriber target 15 months ahead of schedule
- Customer demand for broadband solutions accelerates fixed wireless and fiber rollout
- Fixed wireless subscribers on path to double to 8-9 million by 2028
- Fiber network expected to expand to 35-40 million passings over time
NEW YORK, Oct. 22, 2024 (GLOBE NEWSWIRE) -- Verizon Communications Inc. (NYSE, Nasdaq: VZ) today announced an update to its broadband strategy, with new fixed wireless subscriber goals, household targets and broadband offerings to accelerate its premium broadband and mobility services to millions more customers nationwide. Verizon has more than 11.9 million total broadband connections as of the end of third-quarter 2024, up nearly 16 percent year over year. The update was given today at a sell side analyst event following the release of the company’s third-quarter 2024 results.
“This is a game changing moment for Verizon and for connectivity across the country,” said Hans Vestberg, Verizon Chairman and CEO. “Our ambitious targets for fixed wireless access, combined with our fiber expansion including the planned Frontier acquisition, will bring unmatched broadband coverage to millions more homes and businesses nationwide. We are creating an integrated connectivity experience that gives customers freedom in how they connect and use our services. This is about delivering the network of the future, and setting a new bar for the entire industry.”
Fixed Wireless subscribers on path to double by 2028
- At the end of third-quarter 2024, the company had nearly 4.2 million fixed wireless subscribers, representing an increase of nearly 57 percent year over year. The company hit its previous goal of 4-5 million subscribers 15 months earlier than expected due to the demand from consumer and business customers as they continue to trust the reliability of the product and speed and ease of deployment.
- Verizon is expecting 8-9 million fixed wireless subscribers, doubling its current base, by 2028 and accelerating coverage to 90 million households in the same time period.
- Verizon will commercially launch its advanced mmWave solution for apartment and office buildings to address high population areas. The technology leverages existing infrastructure making it less expensive to build and faster to deploy. Continued deployment of C-band and mmWave will provide the performance and capacity needed to meet these goals and deliver the best-in-class experience that customers expect from Verizon.
Fiber network expected to grow to 35-40 million passings
- Verizon will continue to look for opportunities to accelerate its ongoing Fios builds within the current footprint in nine states and Washington, D.C., giving more customers access to the industry-leading product. Verizon’s recent agreement to acquire Frontier, the largest pure-play fiber internet provider in the U.S., is expected to expand Verizon’s share of the nationwide broadband market, building upon Verizon’s two decades of leadership at the forefront of fiber.
- Upon closing, Frontier is expected to bring in approximately 9-10 million fiber passings.
- In 2025 Verizon is targeting an expansion of Fios builds to up to 650,000 passings annually. Following the closing of the Frontier acquisition, Verizon expects the combined build to be up to 1 million or more passings annually.
- Verizon is expecting more than 30 million fiber passings in the combined Verizon/Frontier footprint by 2028. Over time, Verizon is expecting 35-40 million fiber passings. This will significantly expand Verizon's fiber footprint, accelerating the company’s delivery of premium mobility and broadband services to current and new customers.
- Frontier’s consumer fiber network can be immediately and seamlessly integrated upon closing directly into Verizon’s award-winning Fios network, meeting existing Fios standards.
Outlook and Guidance: Priorities remain unchanged
- The company will maintain its capital allocation priorities, characterized by prudent investment in the business, a commitment to maintaining an industry-leading dividend, continued debt reduction, and efficient return of cash to shareholders, with buybacks to be considered when net unsecured debt to adjusted EBITDA ratio* is at 2.25x.
- For 2025, the company expects capital expenditures of
$17.5 -$18.5 billion , consistent with historical levels of capital intensity. - Revised net unsecured debt to adjusted EBITDA ratio* target of 2.0 to 2.25x.
*Non-GAAP financial measure. See www.verizon.com/about/investors for additional information about non-GAAP financial measures.
About Verizon
Verizon Communications Inc. (NYSE, Nasdaq: VZ) powers and empowers how its millions of customers live, work and play, delivering on their demand for mobility, reliable network connectivity and security. Headquartered in New York City, serving countries worldwide and nearly all of the Fortune 500, Verizon generated revenues of
Forward-Looking Statements
In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional incentives and evolving consumer preferences; failure to take advantage of, or respond to competitors’ use of, developments in technology and address changes in consumer demand; performance issues or delays in the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks; the inability to implement our business strategy; adverse conditions in the U.S. and international economies, including inflation and changing interest rates in the markets in which we operate; cyber attacks impacting our networks or systems and any resulting financial or reputational impact; damage to our infrastructure or disruption of our operations from natural disasters, extreme weather conditions, acts of war, terrorist attacks or other hostile acts and any resulting financial or reputational impact; disruption of our key suppliers’ or vendors’ provisioning of products or services, including as a result of geopolitical factors or the potential impacts of global climate change; material adverse changes in labor matters and any resulting financial or operational impact; damage to our reputation or brands; the impact of public health crises on our operations, our employees and the ways in which our customers use our networks and other products and services; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; our high level of indebtedness; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; and risks associated with mergers, acquisitions and other strategic transactions, including our ability to consummate the proposed acquisition of Frontier Communications Parent, Inc. and obtain cost savings, synergies and other anticipated benefits within the expected time period or at all.
Media contacts:
Katie Magnotta
201-602-9235
katie.magnotta@verizon.com
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