Verizon CEO Hans Vestberg Highlights Mid-Band 5G Focus at UBS Conference
At the UBS Global Media and Communications Conference yesterday, Verizon CEO Hans Vestberg shed light on the company's evolving 5G strategy. Unlike T-Mobile's earlier remarks at the event, which caused a 6.12% drop in its stock, Vestberg’s presentation aimed to reassure investors with a focus on customer satisfaction and revenue growth.
Verizon’s Strategic Shift: From Coverage to Customer-Centricity
Vestberg announced that Verizon’s mid-band 5G strategy has transitioned from expanding coverage to prioritizing customer experience and monetizing the network. Initially, both Verizon and AT&T built their 5G networks using high-speed millimeter-wave (mmWave) spectrum. However, mmWave’s limited range and susceptibility to obstructions like buildings and trees highlighted the need for a more balanced approach.
The Mid-Band Advantage
T-Mobile’s acquisition of Sprint for $26 billion gave it access to 2.5 GHz mid-band spectrum, which offered the perfect compromise: faster speeds than low-band and broader coverage than mmWave. This strategic foresight allowed T-Mobile to establish an early lead in U.S. 5G deployment.
In response, Verizon and AT&T invested heavily in mid-band spectrum, collectively spending $68 billion during the FCC's 2021 auction for C-band licenses (3.7–4.2 GHz). The addition of C-band airwaves significantly improved their 5G data speeds and coverage, with Verizon expanding its Ultra Wideband service to more markets.
Investing in C-Band Infrastructure
In 2021, Verizon allocated $10 billion to a three-year plan to deploy C-band infrastructure, focusing initially on urban areas to maximize coverage. Now, the carrier is prioritizing customer satisfaction by expanding C-band radios in locations that enhance user experience and drive revenue through premium services like fixed wireless access.
Vestberg emphasized that Verizon still plans to cover nearly the entire U.S. population with C-band. He noted that regions with C-band access see higher adoption of Verizon’s premium plans, increased customer retention, and more new customer additions.
Why Mid-Band is Called the "Goldilocks" Spectrum
Mid-band spectrum earns its "Goldilocks" nickname because it offers a balance of speed and coverage. While mmWave provides ultra-fast speeds (up to 1Gbps), its limited range and obstacles make it less practical for widespread use. Mid-band, on the other hand, delivers speeds around 450 Mbps with fewer coverage gaps, making it ideal for everyday users.
Small Cells and C-Band Expansion
Verizon has also deployed small cells—compact cell sites installed on rooftops and streetlights—to enhance its mid-band capabilities. These cells previously supported mmWave but now focus on C-band, reinforcing the company’s commitment to the "Goldilocks" spectrum.
“The user experience on C-band is way, way better,” said Vestberg, adding that Verizon’s C-band assets are sufficient to support its 5G ambitions for years. The company continues to collaborate with partners like Samsung and Ericsson to enhance its network infrastructure.
The Future of Verizon’s 5G Network
Verizon’s pivot to a customer-focused mid-band 5G strategy positions it to compete more effectively in the dynamic telecom market. As the "Goldilocks" spectrum gains prominence, Verizon is betting on its ability to combine superior coverage with lucrative revenue streams to remain a leader in the 5G space.
This strategic evolution underscores the growing importance of mid-band airwaves in shaping the next generation of wireless connectivity.
