Verizon (VZ) to Deploy 5G Broadband Service in Indianapolis

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Verizon Communications Inc. VZ recently announced that Indianapolis will be the fourth city to receive 5G residential broadband service, under its 2018 5G residential broadband deployment plan. Earlier, the company had announced its plan to roll out 5G residential broadband service in four markets in 2018. With this announcement, Indianapolis joins Houston, Los Angeles and Sacramento as the first cities in the United States to receive 5G service. Notably, shares of Verizon jumped 0.7% at close of market on Aug 15, 2018.

The launch will make Verizon the first wireless technology services provider to deploy 5G residential broadband service and 5G mobile service in the United States. Notably, the company will roll out the 5G residential broadband service in the second half of this year. Also, it is set to offer 5G mobile service, as the mobile devices are likely to be available in early next year.

The company also announced that it will include YouTube TV and Apple TV 4K offerings with its 5G residential broadband package in these four cities. Notably, customers get an impressive cinematic experience at home with the Apple TV 4K, which supports both 4K and High Dynamic Range (HDR). Apple TV 4K allows customers to select 4K HDR movies and TV shows from Netflix, iTunes and Prime Video.

Existing Business Scenario

Verizon expects considerable growth in both its Wireless and Wireline businesses, going forward. The company anticipates healthy improvement in margins on the back of continued strong FiOS fiber-optic network and strategic services in the Wireline business. Also, it is looking forward to capitalize on the countless innovative technology solutions being developed in the Internet of Things and telematics ecosystem across multiple industries. Further, the company's current focus on online content delivery, mobile video and online advertising should drive growth.

Moreover, Verizon has started conducting field trials for its upcoming 5G wireless network with partners. The company is looking at mobile hotspot and home-based fixed wireless for initial deployment of the next-generation 5G wireless networks in the United States in 2018. A full phased 5G wireless network is likely to be offered in 2020.

The Zacks Rank #3 (Hold) stock has returned 11.3% in the past three months, outperforming the industry 's growth of 7.7%.

However, it continues to struggle in a highly competitive and saturated wireless market, where spectrum crunch has become a major issue. The company's Wireline division is struggling with persistent losses in access lines owing to competitive pressure from VoIP service providers and aggressive triple-play offerings by cable companies.

Stocks to Consider

Some better-ranked stocks in the same space are Telephone and Data Systems, Inc. TDS , Apptio Inc. APTI and CTS Corporation CTS . All these three companies carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Telephone and Data Systems surpassed estimates twice in the trailing four quarters, with an average positive earnings surprise of 88.80%.

Apptio outpaced estimates in each of the preceding four quarters, with an average earnings surprise of 103.33%.

CTS Corporation exceeded estimates in each of the preceding four quarters, with an average earnings surprise of 18.03%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Symbols: VZ , TDS , CTS

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