Verizon bets on 5G
Verizon announced on Tuesday that it will abandon its pursuit of content and focus on expanding its 5G network.
For a while, Verizon had tried to breach into the content market with other telecom giants like AT&T and Comcast. AT&T hopes that the acquisition of Time Warner gets approved after the Justice Department recently appealed the approval. Comcast currently owns NBC, so it is also a player in the content industry. However, Verizon does not have much in its repertoire, and initially, it sought to change that with sports and entertainment.
CEO Lowell McAdam explains, “We’re not going to be owning content or … competing with other content providers, we’re going to be their best partner from a distribution perspective. That makes great sense for the company going forward.”
Verizon’s 5G network is expected to deliver a speed of 1 Gigabit per second, which is exceptionally fast, and will be the first of its kind. The telecom company is set to unveil the network in Sacramento, Los Angeles, and Houston by the end of the year.
Although net income decreased by over 5 percent year-over-year, revenue increased over 5 percent over the same period. Their earnings report was nothing spectacular, yet they still managed to see their stock value rise 1.5 percent.
Verizon executives seem very excited about this strategic decision. Time will tell if it pays off for the company.
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