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5G

Analyst: Verizon's Fixed 5G Is a Loss Leader for Mobile

New Street Research says Verizon could spend up to $35 billion in capex to deploy its 5G fixed wireless to 32 million homes in the US -- and take seven years doing so -- but that such an investment could give the operator a "meaningful advantage" over other carriers deploying mobile 5G because Verizon would have done the heavy lifting of densifying its network for 5G.

In fact, New Street analysts argue in a new report Tuesday that the main driver for the project is to increase densification of Verizon's 4G -- and ultimately mobile 5G -- network by deploying. This, they argue markets by ~10x. This could "materially delay the need for more mid-band spectrum" for 4G, the report states.

"We estimate that Verizon would need ~360k nodes to address ~32MM households with FWB and 430k nodes when incorporating the FiOS markets [45 million homes in total]." the analysts write.

New Street estimates that Verizon's capital expenditure would hit $22 billion over the seven-year expansion period. This estimate is solely based around the fixed wireless deployment to 32 million homes, so could -- in fact -- be higher in total.

Despite the multi-pronged strategy, Verizon is still watching to see how the 1-GBit/s fixed wireless offering performs against cable rivals, according to the analysts. Verizon management apparently delayed a comment on costs until they had seen results from the initial 5G markets.

"They seemed to imply that if the initial cities met expectations they would be prepared to materially increase capex to pursue the opportunity; if not, the deployment may be spread out over many years, keeping within the current envelope," New Street reports.

— Dan Jones, Mobile Editor, Light Reading

DanJones 1/23/2018 | 7:33:35 AM
Re: Report Fixed now. Thanks!
carlsont 1/22/2018 | 10:32:12 AM
Report The article states there is a report (link provided); however, the link takes me to a North Korea interview in the WSJ with Donald Trump.  Could you provide me with the correct link so I may read the report.  Thank you
TV Monitor 1/17/2018 | 12:03:10 PM
Samsung Exynos 5G launching later this year Samsung's 28 Ghz 5G basestations being deployed by Verizon are fully mobile capable. There is no such thing as Fixed 5G in Korea.

Additionally, commercial 28 Ghz mobile 5G is launching in Korea in March of 2019 and a 28 Ghz 5G compatible Samsung Galaxy S10 phone will launch alongside.

https://www.androidheadlines.com/2018/01/samsung-to-debut-a-5g-modem-for-android-phones-in-2018-report.html

Samsung To Debut A 5G Modem For Android Phones In 2018: Report

January 17, 2018 - Written By Dominik Bosnjak

Samsung is planning to debut a 5G modem for mobile chips meant to be integrated into one of its upcoming Exynos platforms for the company's Android smartphones by the end of the year, BusinessKorea reported Wednesday, citing people familiar with the matter. The modem may be part of the next flagship system-on-chip from Samsung's foundry unit that will power the Galaxy S10 lineup and the Galaxy Note 10 phablet in 2019. Sources claim the creation was already presented to Samsung's major partners during last week's Consumer Electronics Show, having supposedly been privately showcased at the Encore Hotel in Las Vegas, Nevada. The chip was unveiled as the Exynos 5G but that may only be a tentative name, according to the same report.
Phil_Britt 1/17/2018 | 7:37:15 AM
Re: Is it working You are right, numbers usually tell a truer tale over a higher number of reporting quarters.
Austin Idol 1/17/2018 | 7:11:06 AM
Re: Is it working Take "New Street" with a grain of salt. Their numbers look to be a little squirrelly to me.
Phil_Britt 1/17/2018 | 6:32:58 AM
Is it working Being a loss leader only works if it truly brings in additional profits from other sales. So the question for Verizon now: Is it working. Question for the future: Will it continue to work, or is there a path to make the loss leader profitable itself in the future?
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