Verizon CEO Hans Vestberg’s technology related remarks on 4Q2019 earnings call

Note: Copy editing was done to correct grammar errors and delete extraneous words/phrases.

  • Our partnership with AWS Amazon on the 5G mobile edge compute, is a totally new way of accessing a market that we have not been into.
  • We fulfilled our 5G commitment to deploy in 30 cities. We made 31. We said we’re going to launch 5G Home with the NR standard. We did that, and we said we’re going to launch the first 5G mobile edge compute. We did that in Chicago in December.
  • If you think about our priorities for 2020, first of all, continue to grow on the core business. We showed this year we can continue to grow 4G and our core business, and that we’ll continue to do in 2020 as well, including building our network to be the best network in this market. Secondly is leveraging our new assets that we’re building.
  • We’re building out fiber. We’re building our 5G and seeing that we can start leveraging that with our customer.
  • This year, we’ll continue to have a lot of focus on our 5G build-out and we will come back to that later on how we see the 5G market when we will have an Investor Day later in February.

Verizon 5G Super Bowl

Verizon claims 5G leadership with 31 mobile cities, 16 NFL stadiums, 4 basketball arenas; launched 5G Edge and NR-based 5G Home


  • We’re very excited about the opportunities that Verizon business group has, because that’s why we started building the Verizon Intelligent Edge Network some three, four years ago in order to actually address this market in the best way, and the traction we are seeing with our customers is really good.
  • So I think that our technology department have no constraints on what they need to do in 2020. This is what they have plans for in order for us to continue to fortify our 4G network, to continue with strong additions in the 5G as well as continue with our fiber build. And when it comes to the monetization of the fiber build, we’re already starting to do that.
  • Many of the fibers right now are going to our cell sites on air because that was a part of it. Then, of course, it has come a little bit later in monetization for our small and medium businesses and enterprise business, etc. But clearly, we’re already now seeing the benefits of doing that. So going into 2020, I think we have a very solid capital allocation for our capex.
  • Ronan Dunne (VZ CTO) already said in the beginning of the year that we’re going to have some 20 5G devices coming out in the market this year. So of course, we’re going to see more 5G devices coming out. It’s going to be more build in the markets in 2020 than we had last year. So of course, this is a year that there is going to be even more 5G things coming in. When it comes to any particular phones coming out in the market, we cannot really comment on it because that, we’ll leave to the company to do.
  • If this is a market which has a high degree of iOS, that means that when a 5G phone will come out from Apple, that will be important for many consumers to look into what they think is a good change. In our case, I think we’re building a unique 5G experience with our millimeter wave that nobody else is building and have the capability to do. So I think that’s really where the difference will come.
  • We already have the best 4G network as you have seen in the latest J.D. Power and RootMetrics. We’re going to continue to have that. So we’re going to give the best experience for customers. And we — and I’m confident that how we are building the network will make a big difference. And that’s why we also feel very confident if — with all these devices coming out, including if the iPhone would come out, that we will have a good chance to actually grab more customers that want to be on our network. When it comes to the spectrum and all of that, I mean, I think that I might have talked about this so many times. We have all the assets to deploy our 5G strategy when it comes to millimeter wave and using dynamic spectrum sharing, be available nationwide when our customers are ready.
  • Everything from spectrum to how you densify (wireless) networks and what type of software you put in, and that’s a long-term planning how to do that right. And I think that’s something where you — or people around us go wrong when I look at us because think about how we have been performing, and many actually thought that we would never sustain an unlimited. And the more the network is growing, we’re getting more and more headroom as we’re continuing deploying our software and the engineering capabilities we have in the company.
  • We think the C-band (3.7-to-4.2 GHz) is an important spectrum for many reasons. That frequency will be global. So roaming will be done on it, and that’s very important for U.S. market to get into that. And it’s very important for Verizon to get into that. But it’s not hindering our strategy right now to deploy a great 5G network and be able to capture the market for 5G.
  • On the CBRS, as you know, we have already started for quite a long time ago to do trials and see how it works, and it works fine. We think it’s a good addition to the portfolio that in order to see that we get good customer expectations. So we think CBRS is an important spectrum, even though it is sort of more share than anything else, but it’s going to be definitely something we’re using as it comes out.
  • Secondly, when it comes to the 5G Home, you’re confirming, actually what we have in front of us. The next-generation chipset that goes into the CP for 5G Home will come out. At least, the plan right now is in third quarter, which means that commercial product is probably coming out a little bit later because it takes some time from the chipset to the device. By then, we will have, of course, deployed far more millimeter wave across the country, so we will be able to start launching many more markets when that happens. So that will come back to a little bit more about that when have our Investor Day the 13th of February, talk a little bit more about it. But that’s in the grand scheme, the plans for 5G Home, and that’s no different from what we said half a year ago.
  • When it comes to the mix and match, we want to give our (residential) customers options on top of the broadband. If it’s the fiber broadband or if it’s the 5G Home broadband, we want to give them options. Of course, one option is always to have a broadband and having over-the-top services. But another is, of course, giving the mix and match option right now to see that they use the right packages that is more fitted for them. Still, of course, it’s what they can choose whatever channels you have because they come in packages. But the early — or early indication is, of course, that customers that has been on trial for a month, they clearly see what channels they’re using and what package we can suggest for that, that is going to be more optimized. So I think for us, we just think about our customers and where the market is going, and we want to give them the option of actually having different ways they can address the market when it comes to their content consumption. And I think it’s good for our customer experience, but it’s also good for our customers because all of them can do it. So as you said, it’s a little bit early, but I think that our customers are very happy that we’re giving them this option. And I think this is what everyone see where the market is going, meaning more and more over-the-top content is coming in and you want — you need thought, mixing and matching that. And here, we have a great opportunity given our service strategy, and we can work with all the type of option in the content market as we’re not owning any content.
  • We always do the trade-off between owning and leasing or sharing fiber with someone, and that is a very prudent or financially disciplined way of looking at our deployment. In many cases, we see it as owning it has really an advantage for us because of the multi-use of our network. Now we’re doing sites all the time. We’re going to create revenue for our business side. So we probably have a couple of years left on doing that. But in general, I feel good about the pace we have right now and the multi-use of the fiber we have. And I think this is one of the most critical assets in a network today — in today’s world, especially as we build Verizon Intelligent Edge Network and you want actually to start delivering the 5G experience that we’re expecting. We need this fiber to be there. So that’s basically where we are with the fiber.
  • We have already gotten Dynamic Spectrum Sharing (DSS) to work from the software point of view. And the majority of our baseband is ready for taking DSS. So what we have said, I’m not going to give you an exact date, but I’m going to tell you, we’re going to be ready when we feel the market is ready and our customers need to have that coverage. And again, remember, we want to have the best network performance-wise. We don’t want to deploy it because it’s called 5G. We want to see that we actually give a superior performance to our customers. And that’s why we think that the millimeter wave, what we’re doing there is extremely important because we talked about 10 to 20x, at least more throughput and speed than we have on the 4G network, and we still have the best 4G network. So I think that’s what we already assessed. When we meet at the Investor Day, we’re going to talk a little bit more about the technology sector.
  • When it comes to the 5G and where we are, I think that you saw last year that we had a strong deployment coming in during ’19, but of course, we have even higher ambitions in ’20. And we will also come back and talk a little bit about — more about that. But it goes in all three directions in our multipurpose network. It’s for the mobility case, for the home case, and it’s also for the 5G mobile edge compute case, not forgetting that, because all three of them are using our multipurpose network. And when it comes to use cases, I can do some of them.
  • On the mobile edge compute, we see a lot of optimization in factories. We see private 5G networks in order to keep the data and the security and the throughput in a facility, if that’s a campus, whatever, that use case has come up very early on.
  • What we can do with millimeter wave in the stadium, how we can use broadcasting cameras with 5G, a lot of new innovation, both with consumer, but also for the distribution of content. With our spectrum positioning, we basically are limited on the uplink when it comes to stadiums, which is the big blocker today in a stadium. So I think you’re going to see quite a lot next four or five days on consumer cases (at the NFL Superbowl in Miami, FL)  as well as we will continue to give you more insights to it the next couple of weeks and when we meet in New York here.
  • We have told you where 5G will come in, which is more of 2021. So we work with assets we have right now, but we build also a great foundation on 5G going forward for the years after.


2020 Priorities for Verizon: Executing 2020 from a position of strength

1. Strengthen & Grow Core Business
• Extend our network leadership through continued innovation
• Strengthen and grow core business in Consumer, Business & Media
2. Leverage Assets to Drive New Growth
• Scale 5G / MEC / OneFiber & other assets for new growth
• Differentiate brand through trust & innovation
3. Drive Financial Discipline & Strength in Balance Sheet
• Accelerate revenue and earnings growth to drive strong cash flows
• Disciplined capital and operating spend
4. Infuse a PurposeDriven & CustomerCentric Culture
• Put customers at the center of everything we do
• Drive responsible business as part of our strategy



3 thoughts on “Verizon CEO Hans Vestberg’s technology related remarks on 4Q2019 earnings call

  1. Verizon built out its network of 5G in Kansas City, Little Rock and Cincinnati, rolling out the next generation of wireless in 34 cities in 2019. Verizon said it expects to spend $17 billion to $18 billion in expanding 5G, ramping up its 4G and building out more fiber.

    Verizon said that building out its own multi-use fiber will help increase revenue for its business segment.

  2. Verizon is calling Super Bowl LIV the first 5G Super Bowl, as it’ll be showcasing its next-generation wireless service at the big game in Miami on Sunday. The carrier says this will be the first time that its wireless customers will be able to access its 5G mobile network at the event.

    Verizon’s 5G mobile network hadn’t even launched for commercial use a year ago. The company officially kicked off its 5G mobile network in April 2019 once the first two handsets with 5G were available.The situation was similar for its competitors. While AT&T launched its mobile 5G network at the end of 2018, its customers didn’t have access to 5G handsets until later in 2019. T-Mobile and Sprint also began rolling out 5G later in 2019.

    Since then, the carriers have been racing to deploy their networks and touting all the cool things that the newer technology will enable their customers to do. (AT&T, T-Mobile and Sprint also will have some 5G capabilities at the Super Bowl.) Verizon has been at the forefront of using very high-frequency spectrum known as millimeter wave spectrum (mmWave) for its service. This high-frequency spectrum is largely what’s behind the super fast speeds and ultra low latency promised by 5G.

    5G is not only about 100 times faster than 4G, but it also has much lower latency than 4G, making the new networks more responsive. This will allow a whole slew of new applications in areas such as VR, AR and self-driving cars. Verizon, which now offers 5G in parts of 34 cities around the US, is using the Super Bowl to showcase these new capabilities and highlight how some of these functions just aren’t possible over 4G LTE networks.

    But it’s still early days for the technology. All four major US wireless carriers are still deploying their networks. And handset makers are still rolling out new devices. Verizon currently supports seven 5G devices, but it plans to release 20 new 5G devices in 2020. By next year, there are likely to be even more uses for the technology at the Super Bowl.

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