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Verizon Fundamental Analysis February 2024

Verizon Fundamental Analysis.

Verizon Fundamental Analysis. Located in New York, the company, came into existence through the amalgamation of Bell Atlantic and GTE Corp. The company provides various communication services, including local and long-distance phone service, wireless, and data services. In January 2006, Verizon expanded its footprint by merging with MCI Corporation, known for its long-distance and data networking capabilities. The acquisition of Alltel Wireless Corp. in early 2009 propelled Verizon ahead of AT&T Inc., making it the largest wireless provider in North America with a vast customer base.

Verizon has partnered with Amazon Web Services to develop and deliver low latency applications on mobile devices through 5G technology. It became the first in the telecom sector to offer such a service. The company has also introduced a privacy-centric free consumer search engine called OneSearch, broadening the search engine market. Additionally, Verizon has revolutionized cable service pricing with its Mix & Match offering on the FiOS platform. The service allows customers to tailor TV and Internet plans without hidden fees or annual contracts. The company’s commitment to online content, mobile video, and digital advertising is expected to drive future growth.

As 5G services expand throughout the country, Verizon is set to maintain its leadership in the rollout of 5G mobile networks by leveraging virtualized machines, high levels of operational automation, and flexibility. Starting from the second quarter of 2019, Verizon restructured its business operations under a new framework, Verizon 2.0. The company divested its Verizon Media business to Apollo Global Management Inc., with the deal concluding on September 1, 2021.

Operational Structure.

The company now operates through two main segments: Consumer and Business.

The Consumer segment, which accounted for 76.7% of total revenues in the fourth quarter of 2023. It comprises retail wireline and wireless services. The Business segment, representing 21.7% of revenues, encompasses wireless and wireline services for Wholesale, Public Sector, Small and Medium Business, and Global Enterprise.






Verizon Fundamental Analysis.

5G Strong Growth:

Verizon is experiencing strong growth in 5G adoption and in the fixed wireless broadband sector. The company is committed to expanding its 5G Ultra Wideband network nationwide. Its growth initiatives are focused on 5G mobility, broadening nationwide broadband access, and enhancing mobile edge computing and business solutions. Verizon is dedicated to developing a comprehensive network infrastructure and ecosystem to deliver a superior 5G experience for its customers. The company is also rolling out its Home Internet service in selected cities. It is offering users peak download speeds of up to 1 Gbps. Additionally, it is broadening its 5G Business Internet service as a viable alternative to traditional cable broadband.

Verizon has introduced On Site 5G, a private, on-premises 5G network for businesses, combining the best aspects of LTE and 5G Ultra Wideband capabilities. This service is set to revolutionize various sectors, including public safety, healthcare, retail, and sports, as it provides unparalleled 5G mobility experiences. The company’s 5G strategy is underpinned by three critical elements: extensive spectrum holdings, particularly in the millimeter-wave bands for rapid data transmission; comprehensive deep fiber resources; and the capacity to install a vast number of small cells, all aimed at unleashing the full potential of this next-generation wireless technology.

Wide range of products.

Verizon has introduced flexible mix and match pricing options for its wireless and home broadband plans, resulting in significant customer growth. The company has seen an uptick in the adoption of 5G devices and subscriptions to premium unlimited plans. Furthermore, in its enterprise and wholesale segments, Verizon is shifting its revenue composition toward emerging growth services such as cloud, security, and professional services. To assist small businesses in overcoming challenges brought on by the COVID-19 pandemic, Verizon has launched the Complete Business Bundle solutions. These solutions offer dependable, ready-to-use Internet connectivity, desk phone options, and security solutions backed by round-the-clock technical support, facilitating the digital transition for small businesses.

Additionally, Verizon has broadened its Fios Forward initiative to enhance digital inclusion, offering better opportunities for disadvantaged households to engage with the digital era. Fios Forward users enjoy unlimited data, ensuring faster upload and download speeds compared to similar plans. The company’s emphasis on delivering online content, enhancing mobile video, and leveraging online advertising should propel its growth forward.

Verizon’s Portfolio.

Verizon possesses a comprehensive spectrum portfolio, totaling 2,035 MHz, following the acquisition of C-band spectrum. This includes 294 MHz in the Sub 6 GHz range low and mid-band frequencies) and 1,741 MHz in the mmWave spectrum (high band). The low band spectrum continues to underpin the industry-leading 4G LTE service and supports nationwide 5G access, reaching over 2,700 markets. In densely populated areas, Verizon’s mmWave spectrum facilitates transformative experiences due to its highly reliable signal propagation, which results in enhanced efficiency and minimal interference for users.

Additionally, Verizon’s mid-band spectrum holdings, comprising AWS, PCS, CBRS, and C-band frequencies, are crucial for expanding 5G coverage and achieving higher speeds compared to the low band spectrum. The C-Band, in particular, is instrumental in advancing Verizon’s 5G Ultra Wideband service. The company is offering differentiated 5G experiences to millions of customers across more than 230 million locations.

Wireless Network.

Verizon operates one of the most efficient wireless networks in the United States. The company is continuously enhancing it with the latest 4G LTE Advanced technologies. It is improving peak data speeds and increasing network capacity for its customers. This is a result of customer-centric planning, meticulous engineering, and ongoing strategic investments. The company is vigorously expanding its fiber optic networks to bolster both 4G LTE and 5G wireless standards. At the same time, the company is enhance¡ing wireline connectivity. Verizon remains dedicated to its capital expenditure commitments. The company aims at the expansion of its 5G mmWave technology in both new and existing markets. Verizon is densifying its 4G LTE network to meet the growing traffic demands across various sectors. Additionally it is further building out its fiber infrastructure.

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