Verizon misses numbers for Q1, as it moves between successive network models

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Some of Verizon’s first-quarter numbers highlight the challenges facing this telecom carrier as it does battle for spectrum in the new 5G market.

 

Reuters reports Verizon lost 178,000 accounts in the first quarter of this year. Some consensus estimates had been closer to 120,000.

 

As for total operating revenue, Verizon did increase that metric by 4% to $32.9 billion. However, at the same time, Reuters writer Rick Wilking reports that the company spent at least $45 billion raising money for new C-band spectrum licensing.

 

Furthermore, industry insiders reveal that Verizon and AT&T will need to spend a lot more money to use the new licensing components, which are being bought in order to catch up with T-Mobile. After a merger with Sprint, T-Mobile enjoys lots of new bandwidth, and the other two major carriers have to compete.

“Not only did Verizon and AT&T spend $45 billion and $23 billion, respectively, to secure new C-band spectrum licenses, but they’ll also have to spend billions more in order to use them,” writes Motley Fool’s Adam Levy. “The spectrum wavelengths the telecom companies just bought are currently being used by several satellite companies to transmit TV and radio signals. In order to use them, the new purchasers will have to help foot the bill to move those transmissions to a nearby spectrum band. Analysts expect auction winners to spend about $14 billion to clear the airwaves. T-Mobile purchased a scant 142 licenses compared to AT&T’s 1,621 and Verizon’s 3,511. As a result, it should only have to spend a small fraction to clear those licenses compared to its competitors.”

As Verizon prepares to do furious battle in 5G, it’s also decommissioning some of its older services. Kellen at droidlife reports the company now has a date for saying goodbye to 3G – on December 31 of 2022 the company will cease to support this outdated network.

 

5G, though widely touted as a more muscular telecom system, does have its downside – those worried about EMF radiation suggest that the small-cell devices and other changes that 5G needs to thrive may be injecting even more chaos into our surroundings, in terms of the esoteric physics involved in EMF use.

 

Follow this and other developments in telecom to benefit from your investment in related stocks.

 

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