For Verizon, Starry represents a strategic resolution to challenges associated to how 5G-based FWA impacts cell efficiency
Verizon has had an eventful week with three main bulletins: the departure of CEO Hans Vestberg, a direct-to-device take care of AST SpaceMobile, and the acquisition of struggling fastened wi-fi supplier Starry Web.
Management change
Hans Vestberg is stepping down after practically 9 years as CEO, transitioning to a particular advisor position whereas remaining on the board. Throughout Vestberg’s tenure, Verizon’s share worth declined from $52.27 to $39.75, and the corporate misplaced 838,000 cell subscribers over the previous three years, bringing its whole to 74.36 million—effectively behind AT&T’s 118.2 million and T-Cell’s 132.8 million.
The Starry acquisition
Starry Web, based in 2016, pioneered mmWave-based fastened wi-fi entry utilizing the 24 GHz, 37 GHz, and 60 GHz bands. The corporate deployed phased-array antennas on constructing rooftops to serve multiple-dwelling items (MDUs), with every base station masking roughly 1.5 kilometers. Regardless of modern expertise, Starry struggled with weather-related sign degradation and finally filed for Chapter 11 chapter in 2022 after going public through a SPAC merger.
The corporate emerged from chapter in 2024 with about 100,000 MDU clients throughout 5 main markets: Boston, New York, Los Angeles, Denver, and Washington D.C. Starry supplied tiered pricing from $30/month for 200 Mbps to $75/month for 1 Gbps service—aggressive with Verizon’s current 5G Residence Web choices.
The undisclosed acquisition worth seems modest sufficient to be thought of immaterial to Verizon’s monetary reporting. For Verizon, Starry represents a strategic resolution to a important problem: 5G-based FWA closely impacts cell efficiency on account of excessive dwelling knowledge utilization. By leveraging Starry’s mmWave infrastructure for high-density city MDUs, Verizon can offload FWA clients from its major cell community, preserving capability for cell subscribers.
Verizon said the acquisition will assist speed up its plan to double its FWA buyer base to 8-9 million by 2028, although messaging round present subscriber counts — simply greater than 5 million with 278,000 added in Q2 — seems considerably contradictory.
AST SpaceMobile partnership
Days earlier than the Starry announcement, Verizon formalized a definitive business settlement with AST SpaceMobile for direct-to-device (D2D) satellite tv for pc connectivity launching in 2026. This updates a 2024 deal during which Verizon dedicated $100 million to the corporate, following profitable assessments of messaging, voice calls, and broadband providers.
The partnership will make the most of Verizon’s 850 MHz spectrum via AST’s low-earth-orbit constellation to supply nationwide protection throughout the continental United States. Whereas AST SpaceMobile operates its personal L-band and S-band spectrum, the association permits the satellite tv for pc community to leverage its cell operator companions’ current spectrum allocations.
The D2D method presents one other community densification technique, although it faces limitations for indoor use — the place 70-80% of cell knowledge site visitors originates — on account of line-of-sight necessities. AT&T has additionally invested in AST SpaceMobile, whereas rival T-Cell partnered with SpaceX’s Starlink for its D2D platform. SpaceX lately acquired vital spectrum from EchoStar’s Dish operations, although EchoStar maintains plans to launch its personal D2D constellation.
Aggressive panorama
Verizon’s challenges lengthen past cell subscribers. In fastened broadband, its 5 million clients (combining fixed-line and FWA) path T-Cell’s 7 million and AT&T’s 14 million. All three lag far behind cable suppliers, with Comcast holding 32 million subscribers, Constitution 31 million, and Cox 6.5 million — the latter two planning to merge.
Below Vestberg’s management, Verizon’s debt and income remained comparatively flat whereas headcount practically halved from 144,500 to roughly 100,000 workers.
Conclusion
The convergence of those developments indicators Verizon’s strategic pivot underneath new management. The Starry acquisition, whereas small in scale, addresses a technical constraint that has restricted FWA growth, whereas the AST SpaceMobile partnership positions Verizon to compete within the rising satellite tv for pc connectivity market. Nevertheless, incoming CEO Dan Schulman inherits vital challenges: a shrinking cell subscriber base, a distant third-place place in broadband, and mounting strain from each telecom rivals and dominant cable operators. Whether or not these tactical strikes can reverse Verizon’s market share erosion stays to be seen, however they symbolize a transparent acknowledgment that the corporate’s earlier technique required recalibration.
