Verizon's Road to 5G

Ry

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Beefing up the backbone:

Verizon completes purchase of XO Communications’ fiber business

As part of the company's continual plans to build and deliver next-generation networks, Verizon Communications Inc. (NYSE, NASDAQ: VZ) announced today it has completed the $1.8 billion purchase of XO Communications' fiber-optic network business.

Verizon's purchase and integration of XO's fiber network will help the company extend its suite of high-quality network services to its enterprise and wholesale customers. In addition, it will help the company in its plans to densify its cellular network, and to deploy new 5G technologies.

Verizon agrees to $1.05 billion three-year minimum purchase agreement with Corning for next-generation optical solutions | About Verizon

Verizon has been reinventing its network architecture around a next-generation fiber platform that will support all of the company’s businesses. This new architecture is designed to improve Verizon’s 4G LTE coverage, speed the deployment of 5G, and deliver high-speed broadband to homes and businesses of all sizes.

Verizon Preps for 5G with $1 Billion+ Next Generation Optical Fiber Purchase - Telecompetitor

In prep for the next generation optical fiber backbone necessary for the deployment of 5G, Verizon has agreed to a minimum purchase agreement with Corning worth at least $1.05 billion. The purchase includes fiber optic cabling and associated hardware.

The deal calls for Corning to provide up to 20 million kilometers (12.4 million miles) of optical fiber each year from 2018 through 2020, with a minimum purchase commitment of $1.05 billion. Verizon will use those fiber assets for a fiber network architecture that supports 5G, 4G, and its Fios FTTP service.

Verizon says they wanted to hedge against a possible shortage in fiber supply and thus wanted to lock-up a commitment with Corning.

The trial cities/sites:

http://www.rcrwireless.com/20170222...egin-in-april-hit-11-markets-by-mid-year-tag2

The carrier said plans include trials in 11 markets by mid-year, including portions of Ann Arbor, Michigan; Atlanta; Bernardsville, New Jersey; Brockton, Massachusetts; Dallas; Denver; Houston; Miami; Sacramento, California; Seattle; and Washington, D.C. The trials are set to use millimeter wave spectrum bands, with a service focus on providing wireless internet access and voice over IP calling.

The test is set to include select customers, with an emphasis on gauging the user experience, evaluating network performance and gain insight into the performance of services delivered over millimeter wave spectrum. Samsung, which is one of the vendors participating in the trials, claims precommercial tests that began late last year showed “multigigabit throughputs at radio distances of up to 1,500 feet across each of the different environments selected for the customer trials.”

Samsung said its part of the trial will include deployments in New Jersey, Massachusetts, Texas and Washington, D.C., set to begin in April, with a fifth location in Michigan starting trials by mid-year. The trials are set to use spectrum in the 28 GHz band.

Not bidding on the valuable 600 MHz spectrum?

Unparalleled network leadership by doing | About Verizon

We have strong spectrum holdings in the 700, 850, 1900 megahertz (MHz)/PCS, AWS 1 and 3 spectrum bands. So why didn’t we bid on the 600 MHz spectrum? We simply don’t need it.

  • The next big technological innovations are coming in 5G to serve the future needs of business, education, government and consumers. Enhanced fixed and mobile broadband, low-latency services and massive IoT scale will thrive on mid-band and millimeter wave spectrum, which is where we are focused for growth. This means more connected services and devices, and higher broadband capacity that can benefit our entire society.
  • We have sufficient spectrum holdings below 1 GHz.

And the future use of 600 MHz spectrum – only good in the U.S. and not globally - will take some time to figure out and deploy widely, especially in busy urban locations.

Verizon remains comfortable with LTE, 5G spectrum position

The carrier may have come out of the recent 600 MHz incentive auction empty handed, but Verizon claims plenty of runway for current LTE and future 5G plans.

Note: IMO, Verizon won at LTE because of the 700 MHz spectrum.

A Fixed 5G network now, mobile later?

Verizon Says Its Fixed 5G Will Arrive in 2018, Mobile in 2020 | Light Reading

Stratton promised a "meaningful commercial deployment of 5G" in 2018 from Verizon. He was cagey about what exact services the fixed system will provide, but it seems clear that a wireless alternative to cable/DSL services is high on Verizon's priority list.

"The way we're thinking about 5G... the ability to leverage the full scale of our business is an important factor," Stratton added.

A look at Verizon's fixed millimeter wave testing - RCR Wireless News

At last week’s 5G Innovation Summit, representatives from Verizon provided some insights into the set-up and progress of the millimeter wave testing. Krishnamurthy Sreenath and Howard Tang of Verizon’s “5G” network planning and strategy operations, pointed to the work that Verizon has done through establishing its 5G Technical Forum to work with vendors on developing a platform for fixed wireless trials using millimeter wave spectrum. The Samsung router which will support the fixed wireless service won recognition from PC Magazine at this year’s Mobile World Congress. Verizon would like to see the ecosystem grow, Sreenth added, and the software-centric environment of 5G means that new vendors have the opportunity for easier and faster integration with new systems.

Verizon buys XO for $1.8B to boost its 5G wireless gigabit plans - TechRepublic

Verizon is also leasing spectrum from NextLink Wireless, with the 28 GHz band offering even more advantages in 5G trials.

T-Mobile trades words with Verizon and AT&T, says it will launch a real 5G network by 2020 | Android Central

We are investing in the future. We have access to 28 GHz and 39 GHz spectrum that we will use for 5G. And the fiber we acquired through our XO and Corning transactions are enhancing our current networks with a keen eye toward future needs.

Verizon's bid challenges AT&T's offer for Straight Path: source | Reuters

"Clearly ultra-high band spectrum is a critical part of both AT&T and Verizon's 5G Plans" Wells Fargo analyst Jennifer Fritzsche said in a research note. "We believe it fair to assume (Verizon) would like to add to this part of its spectrum portfolio with the Straight Path assets."

Straight Path, which holds a large trove of 28 GHz and 39 GHz millimeter wave spectrum used in mobile communications, would give a new owner an advantage in 5G development.

Straight Path said on Tuesday that the higher offer was considered a "superior proposal" and it has notified AT&T that the telecom company has five days to match or exceed the new bid.