MCLEAN, Va.--(BUSINESS WIRE)--fibeReality, LLC announced in a newly published study that the 5G strategy of Verizon Wireless and other mobile network operators is simply about ensuring their sheer survival because of the intense concern of running out of adequate capacity in general, based on the burgeoning data requirements of their current and near-term customers. Verizon’s 5G Enterprise: Hoarding mmWave for Viability states that although being compelled to quickly respond to getting hammered on the marketing side for full nationwide 5G offerings, especially by T-Mobile, Verizon has already gained a vital network cost and efficiency advantage in maximizing its internal scale capability, including deploying the most optimal architectural design, and encompassing its fiber support infrastructure.
“There has been a false industry-wide narrative that the main purpose of 5G is in offering subscribers unique applications broadly, and so, T-Mobile making coverage and penetration its priority, resulting in limited differentiation from 4G smartphones, while ignoring the critical investments necessary in its millimeter wave spectrum, is akin to putting the cart before the horse,” said Mark Lutkowitz, Principal at fibeReality. “At the same time, Verizon has been forced to become more cautious and tentative than usual with its 5G mmWave buildout not only based on the Covid-19 outbreak, but because of the unexpected expenses and of the additional time necessary to deal with technical difficulties.”
Regarding Verizon Wireless CAPEX, the report projects as much as a 20 percent decline in 2021 compared with fibeReality’s estimate in 2019, with a recovery to normal levels starting in 2022, including continuing work to enable its mid-band spectrum footprint. It also forecasts that the operator’s CAPEX for mmWave will be as much as a third lower in 2024, compared with fibeReality’s assessment in 2019, principally because of anticipated cost reductions.
Additionally, the report addresses that other aberrations, such as a crime spike-up in several large urban areas, could hypothetically result in close to the “perfect storm,” in not getting an acceptable return on its 5G outlays.
The 30-page publication cost $1,000 and can be purchased at https://www.fibereality.com/store.
fibeReality, LLC is an independent research and consulting firm specializing in optical and wireless equipment and services including in telecommunications, datacom, consumer, automobile, AR/VR, and other markets. For more information, visit https://www.fibereality.com/.