Verizon and AT&T originally built out their 5G networks using mmWave spectrum
Verizon CEO Hans Vestberg says the carrier is now focusing on revenue and customer satisfaction with its mid-band 5G service. | Image credit-Verizon
The bottom line is that it is easier for John Q. Public to find a mid-band 5G network with a download data speed of 450Mbps than it is to find a mmWave connection with a download data speed of 1Gbps. Additionally, mmWave signals can be blocked by trees and buildings while mid-band signals are less likely to experience this. Thanks to T-Mobile‘s smart use of mid-band spectrum, the carrier had the early 5G lead in the U.S.
“We already have changed our strategy in ’23, so the deployment of our C-band [midband spectrum] is based on customer satisfaction and on revenue generation. Even though we’re going to cover almost all the population [with C-band], that is not the main driver and the priority right now.”-Hans Vestberg, Verizon CEO
At this stage back in 2021, Verizon set aside $10 billion for a three-year project to upgrade its technology to 5G mid-band C-band spectrum. The plan was to increase coverage and cover as many people as possible by installing 5G C-band radios in densely populated urban areas. But Verizon is now moving on and is installing C-band radios in areas where it can improve its customer satisfaction scores while at the same time, collecting more revenue by offering other services such as fixed wireless.
Vestberg told those listening to him during the UBS event that Verizon still plans to cover almost the entire population of the U.S. with C-band. The CEO pointed out that in areas where Verizon offers C-band service, a higher percentage of its customers choose to subscribe to Verizon‘s most expensive plan compared to customers in markets where C-band isn’t used. Areas with C-band service also report more gross customer additions and fewer customers depart for another carrier.
Why is mid-band 5G spectrum referred to as “Goldilocks?”
Earlier this year Verizon started adding small cells, which are mini-cell sites that can be installed on rooftops or streetlights. Instead of supporting mmWave service as Verizon did previously with its small cells, they now run C-band mid-band airwaves. The nation’s largest carrier has taken large gulps of the C-band flavored Kool-Aid.
Because it is faster than low-band and its signals cover more ground than mmWave, mid-band spectrum is referred to as the “Goldilocks” of 5G airwaves.