Verizon Communications CEO Hans Vestberg has outlined its 5G strategy for revenue and profitability growth in 2019 and beyond.
Verizon plans to launch its 5G Ultra Wideband Network in more than 30 U.S. cities in 2019. Verizon 5G Mobility will launch in the first half of 2019, and Verizon 5G Home will expand coverage to more markets in the second half of 2019.
Revenues from 5G Mobility and 5G Home will begin to scale next year and are expected to contribute more meaningfully to growth in 2021, Hans Vestberg said. The company’s Mobile Edge Computing platform, which will enable real-time enterprise applications, is expected to launch in fourth-quarter 2019.
Hans Vestberg did not elaborate the specific revenue contribution of 5G to its total revenue in 2019 and 2020. Verizon will be looking for revenue streams from its 5G smartphone customers and business customers. Verizon has already tied-up with Samsung for rolling out its 5G smartphone on its 5G mobile network.
Earlier, Verizon indicated that its capital spending for 2019 will be reaching $17-$18 billion, including the expanded commercial launch of 5G. The company’s capital expenditures were $16.7 billion in 2018.
Verizon reported total revenue of $34.3 billion (+1 percent) in Q4 and $130.9 billion (+3.8 percent) in 2018.
Verizon’s 4G LTE network already covers 2.6 million square miles. The network coverage includes LTE Advanced features in 1,500 markets across the country providing significantly more capacity and faster peak data speeds.
Verizon is rolling out One Fiber program in more than 60 cities across the U.S., with more than 25,000 Verizon-owned fiber miles expected to be deployed by year-end. One Fiber opens new revenue opportunities while also bringing cost efficiencies.
Verizon is on track to deliver against its goal to achieve $10 billion in cumulative cash savings by 2021.