Verizon announces new goals for its mid-band 5G airwaves

Verizon and AT&T originally built out their 5G networks using mmWave spectrum

You might recall that when Verizon and AT&T started their 5G build-out, they decided to start with the fastest 5G spectrum, high-band millimeter-wave airwaves. T-Mobile had a different game plan as it purchased Sprint for $26 billion to obtain the latter’s holdings of 2.5GHz mid-band spectrum. What T-Mobile realized was that mm-wave spectrum does not travel long distances and as a result, coverage would be a major issue. While mid-band airwaves aren’t as fast as mmWave, they are faster than low-band.

Verizon announces new goals for its mid-band 5G airwaves

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.

Once Verizon and AT&T realized that mid-band spectrum was the way to go, the pair spent a combined $68 billion to pick up C-band licenses during an FCC auction held in 2021. The C-band, as designated by the FCC, includes the range between 3.7 GHz to 4.2 GHz which makes it mid-band. And once Verizon and AT&T deployed their C-band spectrum, both carriers saw an improvement in their 5G data speeds and coverage. Verizon was able to offer its Ultra Wideband service in many more markets.

“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.

“The user experience on C-band is way, way better,” Verizon CEO Vestberg says. The executive says Verizon‘s C-band holdings will be enough to support its 5G goals for years. The company is injecting 5G into its network by using 5G C-band radios from suppliers like Samsung and Ericsson and has them installed on top of its macro cell towers in the U.S.

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.

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