Verizon Communications has revealed its strategy to launch 5G residential broadband services in three to five U.S. markets in 2018.

Sacramento, California will be the first location to receive the 5G residential broadband services in the second half of 2018 from Verizon Communications. The company did not reveal the names of the other four telecom markets.

The announcement indicates that Verizon is not tapping the enterprise market with the launch of 5G residential broadband services.

Verizon Communications is using millimeter-wave spectrum for launching 5G residential broadband services.

The US-based telecom operator said 5G residential broadband services will use radio signals, rather than copper or fiber cables, to provide high wireless speeds for Internet access.

The company did not reveal details about the speed, coverage, use-cases and price of 5G residential broadband services.

“As 5G continues to evolve, wireless customers will benefit from a wide array of services – including broadband, mobile and IoT (Internet of things) — and the necessary bandwidth and low latency for 3D and virtual reality applications,” Verizon said.

Verizon has conducted trials of 5G residential applications in 11 markets in 2017. The commercial launch is based on customer experience and on Verizon’s confidence in new technology powered by millimeter-wave spectrum.

According to Verizon estimates, the market opportunity for initial 5G residential broadband services will be approximately 30 million households nationwide.

The mobile operator has clarified that 5G commercial launch will not have any impact on Verizon’s Capex (capital expenditures) in 2018. The company expects its 2018 capital spending program to be consistent with the past several years.

“This is a landmark announcement for customers and investors who have been waiting for the 5G future to become a reality,” said Hans Vestberg, Verizon president of Global Networks and chief technology officer.