At the Barclays Communications and Content Symposium on February 25, 2025, Verizon Communications (NYSE: VZ) Executive VP Joseph Russo discussed the company's network strategy and infrastructure development. Here are three things of note for investors.
Internal Cloud Platform Development Drives Network Strategy
Verizon has developed its own virtual cloud platform, focusing on building internal expertise in cloud computing capabilities.
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Our philosophy was if we are going to be the best in cloud computing, in virtualized and cloud RAN [radio access network] in the core ... then I better have an organization who's best at that, too. ... We're on this path, and we're probably about five years into this path, 40% of the network done.
-- Joseph J. Russo, Executive VP & President of Global Networks and Technology
Virtualizing 40% of the network means replacing old hardware with software that runs on general-purpose computers. This makes it easier to upgrade, manage, and expand the network as needed.
Broadband Expansion Through Fiber and Fixed Wireless
Verizon is expanding broadband coverage through both fiber deployment and millimeter wave technology for fixed wireless access. Fiber lays internet cables directly to homes, while fixed wireless uses radio waves to deliver internet without needing cables. The combination of fiber cables and radio waves help bring high-speed internet to more people.
We're anticipating building about 650,000 prems this year, which is up from prior years. ... we're now using millimeter wave to serve MDUs [multi-dwelling units] as well, which can deliver 1 gigabit speeds in MDUs in a super reliable way using millimeter wave.
-- Joseph J. Russo, Executive VP & President of Global Networks and Technology
By using millimeter wave technology -- high-frequency radio signals -- Verizon can provide ultra-fast internet speeds wirelessly to buildings such as condos and apartments.
Three-Pillar Approach to AI Network Infrastructure
The company outlined its AI Connect strategy focusing on three key infrastructure elements.
We're putting this under the umbrella of what we're calling AI Connect, but it's really reimagining our assets for this new AI ecosystem ... the first is ... fiber and wave services ... the second is ... space power and cooling ... and then the third is ... programmable networks.
-- Joseph J. Russo, Executive VP & President of Global Networks and Technology
This means Verizon is improving three things: faster internet connections (fiber and wave), better facilities to handle all the equipment (space, power, cooling), and smarter networks that can adapt through software (programmable networks).
Looking Ahead
Russo outlined key focus areas including Ultra Wideband Network deployment, 5G-Advanced services development, and AI infrastructure capabilities. The company has virtualized 40% of its radio access network and operates over 50,000 small cells (essentially mini cell towers) deployed on millimeter wave -- enabling better coverage in crowded places like cities. As Russo noted, "we are now industry experts, world-leading experts in how to run a telecom infrastructure on cloud infrastructure."
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David Kretzmann has no position in any of the stocks mentioned. The Motley Fool recommends Barclays Plc and Verizon Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
