Verizon today updated broadband strategy reflecting its plans to expanding connectivity services, driving growth in fixed wireless access (FWA) and fiber infrastructure.
The key components of this strategy — driven by Verizon Chairman and CEO Hans Vestberg — include subscriber growth targets, infrastructure investments, and operational integration to deliver a superior broadband experience.
Elements of Verizon’s Broadband Strategy
Fixed Wireless Access (FWA) Expansion:
Verizon plans to double its fixed wireless subscribers by 2028, reaching 8-9 million, with coverage expected to expand to 90 million households.
Current fixed wireless subscribers reached 4.2 million at the end of Q3 2024, a 57 percent year-over-year increase, surpassing previous growth goals.
The strategy includes the deployment of advanced mmWave technology for high-density areas such as apartment and office buildings, enhancing both coverage and cost efficiency.
Fiber Network Growth:
Verizon’s fiber network will expand to 35-40 million passings by 2028, a significant increase fueled by ongoing Fios expansion and the planned acquisition of Frontier.
The acquisition of Frontier, which brings an additional 9-10 million fiber passings, will integrate seamlessly into Verizon’s Fios network, offering an immediate boost to Verizon’s share of the broadband market. But the acquisition of Frontier is facing resistance from Frontier shareholders.
Verizon aims for annual fiber builds of up to 650,000 passings, potentially reaching 1 million after the Frontier acquisition closes.
Frontier Acquisition:
Frontier, the largest pure-play fiber internet provider in the U.S., adds significant scale to Verizon’s fiber footprint, which will accelerate the delivery of high-speed services.
The Frontier acquisition will help Verizon achieve leadership in the broadband space by extending fiber availability to more households and businesses across the country.
Technology and Infrastructure Enhancements:
Verizon is focused on leveraging C-band and mmWave spectrum to enhance its wireless network, ensuring high performance and capacity.
The company will also deploy new infrastructure more efficiently by utilizing existing networks, particularly for FWA in urban environments, providing a quicker and more cost-effective expansion of services.
Capital Investment and Financial Priorities:
Verizon is targeting capital expenditures of $17.5 billion – $18.5 billion in 2025, in line with historical levels of capital intensity. In fact, Verizon is aiming to enhance Capex marginally despite planning to target more broadband customers in the United States. For 2024, Verizon is targeting Capex of $17 billion – $17.5 billion.
The company remains committed to maintaining a strong dividend, reducing debt, and returning value to shareholders. Stock buybacks may be considered when financial leverage ratios improve.
Integrated Connectivity Experience:
By offering an integrated suite of mobility and broadband services, Verizon is positioning itself as the go-to provider for seamless connectivity, whether for consumers at home or businesses on the move.
The strategy reflects a commitment to offering customers more freedom and flexibility in how they connect and use services, driving customer satisfaction and loyalty.
Verizon’s broadband strategy positions the company for significant growth through an integrated approach, combining fixed wireless, fiber expansion, and advanced technologies to meet the evolving needs of consumers and businesses across the U.S.
Baburajan Kizhakedath
