Verizon Tops Subscriber Estimates, Gears Up for 5G Battle

Verizon Tops Subscriber Estimates, Gears Up for 5G Battle
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Verizon exceeded Wall Street estimates for profit and subscriber growth in the second quarter, as the company begins the costly process of launching 5G, according to Bloomberg.

Total subscribers rose by 451,000, which includes 245,000 new phone customers. The remaining additions were hotspots, smartwatches and other connected devices. Earnings, excluding special items, were $1.23 a share, according to a statement. Analysts expected 349,000 new subscribers and earnings of $1.20.

Verizon faces a potentially different wireless market if T-Mobile US is able to complete its $26.5 billion takeover of Sprint. The combination would make for a three-way race with Verizon, AT&T and T-Mobile to build and capitalize on new 5G service, with Dish Network entering the field as part of the deal.

If the deal goes through, T-Mobile and Dish will have their hands full with network integration and construction, Verizon CFO Matt Ellis said in an interview. “That will take time while they focus on those things,“ he said. “Meanwhile, we will continue to do what we’ve been doing.“

Verizon took the early lead in 5G, and now offers the advanced mobile service in parts of nine cities. Being first will start to pay off in revenue growth in 2021, Ellis said. CEO Hans Vestberg has shrunk investments in areas like media and advertising to focus more on network expansion, particularly toward 5G technology.