Fixed wireless, private networks make Verizon ‘stronger’ than the competition: CEO

Verizon CEO Hans Vestberg mentioned the upcoming $20 billion mega deal to acquire Frontier Communications and recently acquired US Cellular spectrum as part of its plan for dominance of fixed wireless, 5G and private networks during the company’s update company on third-quarter 2024 earnings and broadband Tuesday.

Verizon is banking on its strong network “foundation” to maintain the pace it sees in fixed wireless, 5G and private networks, the telecom giant said.

“Our momentum continues to grow thanks to strong operational performance in mobility and broadband

and private networks. While offering choice and value to our customers, we have signed strategic mergers and acquisitions

and implemented cost efficiencies to make Verizon stronger,” Verizon CEO Hans Vestberg said Tuesday morning during a recorded third-quarter 2024 earnings call.

Verizon last month unveiled plans to acquire Frontier Communications in an all-cash deal worth $20 billion. The carrier hopes the deal for Dallas-based Frontier, which is in the backyard of Verizon’s biggest rival, AT&T, will help Verizon gain more share of the telecommunications market. The pending deal will expand Verizon’s total addressable market in mobility and broadband, Vestberg said.

“After the closure, Verizon will be unmatched as the only company with the ability to serve both fixed wireless access and fiber at scale,” he said.

The company also said this month that it has agreed to buy a portion of US Cellular’s low- and mid-band spectrum licenses for $1 billion, as the nation’s fourth-largest mobile network operator divests parts of its portfolio in preparation for acquiring its own deal. from T-Mobile.

(Related: Verizon CEO: $20 Billion Acquisition of Frontier Makes Us ‘More Competitive,’ Adds $500 Million in Cost Synergies)

In private networks, Vestburg says Verizon sees strong momentum and “exciting opportunities,” noting two expanded sports partnerships. One of these is with FIFA, where the airline will provide the network

services for the 2026 Men’s World Cup and serving as a tournament supporter of the 2027 Women’s Championship

World Cup. Verizon is also expanding its partnership with the Madison Square Garden Family of Companies to become the official wireless provider for all of its locations, including Madison Square Garden.

Tony Skiadas, Verizon’s CFO, said fixed wireless access is on track to generate more than $2 billion in revenue for the company this year. Verizon’s plan is to double the number of fixed wireless access subscribers by 2028, bringing the number of households and businesses to 90 million.

Total operating revenues for Verizon Business, which includes Enterprise, Business Markets and Public Sector and Wholesale businesses, continued to decline, declining 2.3 percent on revenue of $7.35 billion in the third quarter, compared to $7.53 billion in the quarter of last year.

The business and public sectors continued their downward trend, declining 6.6 percent to $3.54 billion in the third quarter of 2024, compared to $3.79 billion a year ago.

Business Markets and Other revenues rose 2.5 percent to $3.26 billion in the third quarter, compared to $3.18 billion in the same period a year ago. Wholesale sales fell 1.1 percent to $550 million in the third quarter of 2024, compared to $556 million a year earlier.

Verizon Business wireless revenue was $3.46 billion in the third quarter of 2024, up 2.9 percent year over year. Verizon Business reported 158,000 postpaid phone additions. Vestburg credited Verizon Business Group Executive Vice President and CEO Kyle Malady for his success in business wireless communications during the carrier’s broadband update Tuesday morning.

Skiadas said the airline saw continued buying activity throughout the quarter and received strong contributions from small and medium businesses, enterprises and governments

customers in the sector.

For the third quarter ended September 30, Verizon reported operating revenue of $33.30 billion, which was flat compared to the same quarter last year.

The airline’s net income was negatively impacted in the third quarter of 2024, falling 30.2 percent to $3.41 billion from $4.88 billion a year ago. Verizon reported diluted earnings per share of 78 cents, compared with $1.13 in the third quarter of 2023, a decline of 31.0 percent.

The Basking Ridge, N.J.-based airline just missed Wall Street expectations of $33.5 billion in revenue in the third quarter of the year.