We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Verizon to Aggressively Deploy Dark Fiber for 5G Backhaul
Read MoreHide Full Article
U.S. telecom behemoth Verizon Communications Inc. (VZ - Free Report) has decided to acquire and install dark fiber based network throughout its footprint in order to support the existing 4G LTE network and more importantly to transition into the upcoming 5G wireless network.
Dark fiber provides abundant bandwidth which is of utmost necessity for the smooth functioning of super-fast wireless networks such as 4G and 5G. Dark fiber based backhaul provides scalability and efficiency to bandwidth management. This will eventually lead the company to significantly reduce its backhaul costs.
Verizon acquired dark fiber through its acquisition of MCI in 2006. In Feb 2016, the company entered into a definitive agreement to acquire XO Communications Inc.’s dark-fiber optic network. The deal, valued at $1.8 billion, is expected to be closed by the first half of 2017, subject to customary regulatory approval. Verizon will also lease XO’s LMDS (Local Multipoint Distribution Service) wireless spectrum with an option to buy them by the end of 2018. XO has a portfolio of 102 LMDS licenses in 28 GHz and 39 GHz bands.
XO operates a fiber-based IP and Ethernet network consisting of 20,000 route mile intercity network in the US and Canada. The network covers 85 major metropolitan markets in these two countries offering data transfer speed of up to 100 Gbps. The company also operates metro fiber networks in 40 major cities, and a 13,000 route mile metro network with more than 4,000 on-net business buildings and 1.2 million fiber miles.
The takeover of XO will significantly boost the capacity of the services Verizon offers to its business and wholesale customers, giving it a foothold in the data center interconnection market. Additionally, it will bolster Verizon’s cell network density boosting its mobile backhaul network. In addition, XO’s fiber assets will enable the company to enhance its dark fiber-based solutions for its small cell network. The densification of cell network will significantly help the company to install and build its upcoming 5G network.
Verizon’s competitors, such as, AT&T Inc. (T - Free Report) , Sprint Corp. (S - Free Report) and CenturyLink Inc. are also strengthening their dark fiber network for small cell wireless backhaul. Verizon has estimated that the takeover of XO’s fiber assets will result in operational synergy of over $1.5 billion in terms of net present value.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Verizon to Aggressively Deploy Dark Fiber for 5G Backhaul
U.S. telecom behemoth Verizon Communications Inc. (VZ - Free Report) has decided to acquire and install dark fiber based network throughout its footprint in order to support the existing 4G LTE network and more importantly to transition into the upcoming 5G wireless network.
Dark fiber provides abundant bandwidth which is of utmost necessity for the smooth functioning of super-fast wireless networks such as 4G and 5G. Dark fiber based backhaul provides scalability and efficiency to bandwidth management. This will eventually lead the company to significantly reduce its backhaul costs.
Verizon acquired dark fiber through its acquisition of MCI in 2006. In Feb 2016, the company entered into a definitive agreement to acquire XO Communications Inc.’s dark-fiber optic network. The deal, valued at $1.8 billion, is expected to be closed by the first half of 2017, subject to customary regulatory approval. Verizon will also lease XO’s LMDS (Local Multipoint Distribution Service) wireless spectrum with an option to buy them by the end of 2018. XO has a portfolio of 102 LMDS licenses in 28 GHz and 39 GHz bands.
XO operates a fiber-based IP and Ethernet network consisting of 20,000 route mile intercity network in the US and Canada. The network covers 85 major metropolitan markets in these two countries offering data transfer speed of up to 100 Gbps. The company also operates metro fiber networks in 40 major cities, and a 13,000 route mile metro network with more than 4,000 on-net business buildings and 1.2 million fiber miles.
The takeover of XO will significantly boost the capacity of the services Verizon offers to its business and wholesale customers, giving it a foothold in the data center interconnection market. Additionally, it will bolster Verizon’s cell network density boosting its mobile backhaul network. In addition, XO’s fiber assets will enable the company to enhance its dark fiber-based solutions for its small cell network. The densification of cell network will significantly help the company to install and build its upcoming 5G network.
Verizon’s competitors, such as, AT&T Inc. (T - Free Report) , Sprint Corp. (S - Free Report) and CenturyLink Inc. are also strengthening their dark fiber network for small cell wireless backhaul. Verizon has estimated that the takeover of XO’s fiber assets will result in operational synergy of over $1.5 billion in terms of net present value.
VERIZON COMM Price
VERIZON COMM Price | VERIZON COMM Quote
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>