Verizon Interested in CBRS Spectrum, Leading in 5G, CEO Vestberg Says
Verizon reported mixed Q4 results, like AT&T the previous day (see 2001290025). Verizon had 852,000 wireless retail postpaid additions, including 588,000 phones, the highest net adds in six years. Postpaid churn was 0.86 percent. Verizon CEO Hans Vestberg told analysts…
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Thursday Verizon is interested in the 3.5 GHz citizens broadband radio service band. The carrier has done extensive tests, and it works, he said: “It’s going to be definitely something we’re using as it comes out.” On 5G more generally, Verizon committed to launch in 30 cities and is up to 31, Vestberg said. The company expects more than 20 5G devices to come to market in 2020, with a 5G Apple device driving uptake. “We're building a unique 5G experience with our millimeter wave that nobody else is building,” the chief said. Profit was $5.22 billion, up from $2.07 billion in the year-ago quarter and slightly some analyst estimates. Wireline revenue of $3.2 billion fell 1.7 percent. Verizon, unlike AT&T, is increasing capital expenditures, which means lower free cash flow, said MoffettNathanson's Craig Moffett. In other ways, the results are similar, he wrote investors. “The wireless business is getting more competitive,” said the analyst. “Churn is rising and margins are falling, and the highly anticipated (feared?) 5G upgrade cycle hasn’t even started yet. And everything other than wireless is even worse. AT&T’s non-Mobility segments were a disaster. Verizon’s non-wireless segment … was, well, a catastrophe.” Wireless phone adds “were strong, though this won’t be much of a surprise following comments from AT&T and T-Mobile about how aggressive Verizon was in the quarter,” said New Street’s Jonathan Chaplin. “Churn didn’t spike as much as others, though this isn’t surprising given that they were the ones promoting most aggressively (inflicting higher churn on others).”