Fixed Wireless, Private Networks Making Verizon 'Stronger' Than The Competition: CEO

Verizon CEO Hans Vestberg mentioned the pending $20 billion megadeal to acquire Frontier Communications and its recently acquired spectrum from U.S Cellular as part of its plan for fixed wireless, 5G and private networking domination during the company’s third-quarter 2024 earnings and broadband update call Tuesday.

Verizon is relying on its strong “foundation” of a network in order to sustain the tempo it’s seeing in fixed wireless, 5G and private networking, according to the telecom giant.

“Our momentum continues to build from strong operational performance across mobility, broadband

and private networks. While bringing choice and value to our customers, we signed strategic M&A

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

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

“Post-close, Verizon will stand unmatched as the only company with the ability to serve both fixed wireless access and fiber at scale,” he said.

The company this month also said that it has agreed to buy a portion of U.S Cellular’s low- and midband spectrum licenses for $1 billion as the firth largest mobile network operator in the country sheds parts of its portfolio in preparation for its own deal to be acquired by T-Mobile.

In private networking, Vestburg said Verizon is seeing strong momentum and “exciting opportunities,” noting two expanded sports partnerships. One is with FIFA, in which the carrier will provide network

services for the 2026 Men’s World Cup and serve as a Tournament Supporter of the 2027 Women’s

World Cup. Verizon is also growing its partnership with the Madison Square Garden Family of Companies to become the official wireless provider for all of its venues, which includes Madison Square Garden.

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

Third-Quarter 2024 Financial Results

Total operating revenue for Verizon Business, which includes the company’s Enterprise, Business Markets, and public sector and wholesale businesses, continued to decline, slipping 2.3 percent on revenue of $7.35 billion during the third quarter compared with $7.53 billion in the year-ago quarter.

Enterprise and public sector continued to trend downward, falling 6.6 percent during third-quarter 2024 to $3.54 billion compared with $3.79 billion a year ago.

Business Markets and other revenue rose 2.5 percent during the third quarter to $3.26 billion compared with $3.18 billion in the year-ago period. Wholesale revenue fell 1.1 percent to $550 million during the third quarter of 2024 from $556 million one year before.

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

Skiadas said that the carrier saw sustained buying activity throughout the quarter and had strong contributions from small and medium businesses, enterprise and public

sector customers.

For the third quarter ended Sept. 30, Verizon reported operating revenue of $33.30 billion, which stayed flat compared with the same quarter last year.

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

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