While it’s weathering a rough second quarter, Verizon still sees material revenue opportunities from delivering private 5G networks, mobile edge computing and other services into the enterprise and government sectors. Speaking on an earnings call last week, CEO Hans Vestberg said, “Private networks are the gateway to mobile edge compute, which can deliver game-changing customer outcomes, including revenue growth, new customer experiences and cost savings.”
“This trend will continue to create growth opportunities for us across a range of industries, as we are a market leader in 5G private networks and in mobile edge compute,” Vestberg said.
Outgoing Verizon Business Group CEO and Executive Vice President Tami Erwin, speaking to RCR Wireless News earlier this year, was confident in Verizon’s ability to monetize its network in support of enterprise digital transformation. She called out a multi-pronged strategy that includes 5G-based fixed wireless access, public and on-prem mobile edge compute, and private cellular networking.
On the fixed wireless front, in the second quarter Verizon reported 168,000 net additions on the consumer side and another 88,000 from the business segment.
With regard to its expanding mobile edge computing footprint, Vestberg noted the addition of new AWS Wavelength zones turned up in Nashville and Tampa, amounting to deployments in 19 metro areas. “This means that 75% of the U.S. population is now within 150 miles of Verizon’s 5G Edge,” he said.
Other bright spots of enterprise business Vestberg called out were a $400 million project with the Federal Bureau of Investigation to help the law enforcement organization “meet its global bandwidth demands. We will provide direct access to their development team, and we’ll advise on system enhancements like cloud computing, video and imaging transmissions and data applications. We’ll also offer private 5G solutions.”
With its private networks business, Verizon seems to be gaining momentum in delivering connectivity to ports. Back in April, Verizon announced its first European private 5G contract, in a deal with Associated British Ports in the U.K. covering the Port of Southampton. Nokia is providing the networking infrastructure, as part of the deal it struck with Verizon in October to supply enterprises with private 5G in Europe and Asia Pacific.
Stateside Verizon is building a private 5G network for Virginia International Terminals across its seaports campus. Vestberg said, “This network is scalable to replace Wi-Fi with more secure connectivity. We’re seeing new opportunities and increased demand for these network solutions from enterprises and other organizations. Verizon is uniquely positioned to take advantage of the moment and provide the highest-quality private networks to these customers.”
He continued: “This trend will continue to create growth opportunities for us across a range of industries, as we are a market leader in 5G private networks and in mobile edge compute. The momentum in Verizon Business is a fitting send-off for Group CEO, Tami Erwin, who is ending her amazing 35-year career at Verizon.”