Can VZ Stock Profit From Starry's Expanded Fixed Wireless Access?

Core Insights - Verizon Communications Inc. has signed a definitive agreement to acquire Starry, enhancing its fixed wireless broadband capabilities and aiming to double its subscriber base to 8-9 million by 2028 [1][8] - The acquisition will expand Verizon's reach to 90 million households, leveraging Starry's existing infrastructure in urban markets [2][8] Group 1: Acquisition and Expansion - The acquisition of Starry allows Verizon to integrate millimeter wave technology with its fiber assets, providing affordable high-speed Internet services in urban areas [2] - Verizon is also pursuing the acquisition of Frontier Communications, which will extend its fiber footprint and improve its broadband and mobility services [4] - The combination of Frontier's broadband with Verizon's mobile offerings is expected to reduce customer churn by approximately 50% for postpaid mobility, potentially boosting mobility division revenues [4] Group 2: Network and Technology Development - Verizon is focused on capital expenditures to expand its 5G mmWave network and enhance its fiber infrastructure to meet growing traffic demands [3][8] - The company's 5G network relies on massive spectrum holdings, deep fiber resources, and a large number of small cells to maximize the potential of next-generation wireless technology [6] Group 3: Market Challenges - Despite growth in wireless services, Verizon faces declining legacy services and competitive pressures from VoIP providers and cable companies, impacting its wireline division [7] - High capital expenditures for 5G and fiber deployment, along with competitive pricing strategies, are affecting Verizon's profit margins [8][16] Group 4: Stock Performance and Investor Sentiment - Verizon's stock has declined by 5% over the past year, underperforming compared to industry growth and competitors like AT&T and T-Mobile [11] - Earnings estimates for 2025 have decreased by 0.8% to $4.69, while estimates for 2026 have increased by 2.7% to $4.92, indicating mixed investor sentiment regarding growth prospects [14]