Verizon’s quarterly results were a mixed bag, offering both good and bad news for investors, according to Bloomberg.
On the one hand, Verizon added 1.25 million subscribers, beating analysts’ expectations of 1.23 million. The added growth was, at least in part, aided by Verizon’s deal with Walt Disney Co. to provide subscribers free access to Disney+ for a limited time. On the other hand, that deal ate into profits, as Verizon is essentially footing the bill for its subscribers, although the exact cost has not been disclosed.
The cost of 5G roll out has also been cited as a reason for the company missing estimates. A separate report by Bloomberg, however, highlights why the company is pushing as hard as it is on 5G. According to the report, analysts at LightShed Partners are saying that Verizon has used up most of its available airwaves in Miami, Chicago and other cities. The firm’s report is based on their own research, as well as data provided by mobile testing firm Opensignal.
“They have used spectrum to fuel capacity growth and improved speeds, and now they have a limited amount left,” said Walt Piecyk, LightShed analyst.
As a result, Verizon needs to roll out 5G as quickly as it can, especially in cities, to ease the strain on its network. If its 5G delivers on the promise, however, the company should have no trouble growing its customer base and revenue even more.
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