Verizon to Commercially Deploy 5G Fixed Wireless in 2018

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The U.S. telecom behemoth Verizon Communications Inc.VZ is currently 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 U.S. in 2018. However, a full phased 5G wireless network will be offered only in 2020.

Currently, Verizon is conducting customer trials in 11 U.S. cities for fixed 5G wireless network. The company is focusing on building a fiber and wireless infrastructure in a bid to deliver mobile video efficiently. Recently, John Stratton, Verizon's EVP and president of operations, revealed this plan at the Deutsche Bank 25th Annual Media & Telecom Conference.

The wireless giant, which was the first to deploy the 4G LTE (Long-Term Evolution) network nationwide, is initially testing equipment at 15GHz, 28GHz, 39GHz and 64GHz frequency bands for 5G network deployments. The company's partners in the 5G project are Cisco Systems Inc. CSCO , Ericsson LM ERIC , Nokia Corp. NOK and Samsung.

Advantage of 5G

Verizon claims that its 5G network will provide a download speed of 1 Gbps (gigabit per second) which is 200 times the throughput of the currently available standard 4G LTE network. Latency period of data delivery will be in single milliseconds. Further, 5G technology is designed to be more power efficient than any other standard wireless networks available these days. Therefore, 5G-enabled mobile devices are likely to last much longer than their 3G or 4G counterparts.

Additionally, superfast 5G mobile networks will be of utmost necessity in managing the exponential growth of Internet-connected devices, popularly known as Internet of Things (IoT). The U.S. telecom industry has lately emerged as an intensely contested space where success thrives largely on technical superiority, quality of services and scalability. Thus, in order to stay ahead of competitors, existing players need to be constantly on their toes to introduce innovative products. At this juncture, we believe Verizon's drive for 5G wireless network bodes well for future growth.

Price performance of Verizon

In the last six months, the stock price of Verizon has witnessed a negative growth of 7.80%, in contrast to the Zacks categorized U.S National Wireless industry's positive growth rate of 1.34% in the same time period. Nevertheless, Verizon has a very powerful diversified business model. In the wireless front, it will start initial deployment of the upcoming 5G network in 2018 while on the wireline front, the company is aggressively expanding fiber-based footprint. In the digital media front, Verizon has become a major contender for the lucrative online advertisement business. We believe these are primary reasons behind the stock currently carrying a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

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Cisco Systems, Inc. (CSCO): Free Stock Analysis Report

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Verizon Communications Inc. (VZ): Free Stock Analysis Report

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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.

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

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