Verizon plans to double its FWA subscriber base by 2028 and eventually extend fiber to 35 million to 40 million locations. Some analysts aren't convinced the updated plan is enough to fulfill Verizon's convergence ambitions.
Verizon is going bigger on fixed wireless access (FWA) and looking to broaden and accelerate its fiber network buildout. But some analysts still believe the operator's grander convergence plan will fall short.
As part of a "broadband update" tied to its Q3 2024 financial results, Verizon Chairman and CEO Hans Vestberg said Tuesday that Verizon has doubled its FWA subscriber target to a range of 8 million to 9 million by 2028.
Verizon ended Q3 2024 with 4.18 million FWA subscribers (2.49 million residential and 1.69 million business), reaching the 4 million mark about 15 months ahead of schedule. However, the rate of FWA subscriber growth slowed in Q3 as Verizon added 363,000 FWA subs versus a gain of 384,000 in the year-ago period.
New Street Research suggested in a research note issued after today's call that Verizon would need to add FWA subs at a pace of roughly 285,000 per quarter to hit the high end of its 2028 subscriber target. That's below the pace of 355,000 to 395,000 subs Verizon has achieved over the last eight quarters, New Street added.
Verizon did not break down how many residential and business customers factor into its new FWA forecast. New Street reckoned the consumer total could average around 170,000 per quarter, a slower pace that "should bring some relief to Cable investors."
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Verizon is confident it will have the capacity to support its updated FWA subscriber goals as well as its plan to extend FWA coverage to another 30 million homes and business – for a total of 90 million – in the next four years.