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Verizon Private 5G Network Gains Traction: Can it Boost Revenues?

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Key Takeaways

  • VZ to deploy Private 5G in major UK ports, including DP World London Gateway and Ford Dagenham.
  • The network will support AI, IoT, automation and real-time logistics to boost operational efficiency.
  • VZ's customizable B2B 5G solutions offer enhanced security, reduced time to market and revenue growth.

Verizon Communications Inc. (VZ - Free Report) recently secured a multibillion-dollar contract to provide a Private 5G Network along the River Thames Estuary in the United Kingdom – one of the busiest maritime logistics hubs in the region, with trades worth £130 billion per year. Serving multiple key logistics, manufacturing and innovation sites across the river, the Private 5G Network buildout will provide a scalable, long-term connectivity foundation for advanced data, AI, edge computing and IoT infrastructure deployments aimed at transforming port and manufacturing operations.

The Verizon Private 5G Network brings a transformative opportunity for the business-to-business (B2B) sector, empowering organizations to customize connectivity solutions according to their precise needs. Along with advanced security measures, it offers predictive maintenance, process automation, autonomous vehicle control, safety monitoring and real-time logistics orchestration, which greatly enhances productivity and drives cost efficiency in operations. These advanced capabilities empower B2B clients to rapidly adopt emerging digital technologies, reduce time to market and enhance revenue potential. 

Verizon will deploy the Private 5G Network in DP World London Gateway and DP World Logistics Park, the Port of Tilbury and Ford Dagenham. The DP World London Gateway and DP World Logistics Park is the largest and most integrated deep-sea container port and logistics facility in the United Kingdom, with port capacity to handle more than 3 million units per year. The Port of Tilbury is the largest of the mixed-use Thames Freeport ports, handling 16 million tons of cargo per year across 31 independent working terminals. The Ford Dagenham facility is the largest manufacturing site in London.

Other Tech Firms Deploying Private 5G Networks

Nokia Corporation (NOK - Free Report) has joined forces with NTT Ltd., a prominent IT infrastructure and service company, to accelerate the digital transformation efforts in Thailand. The companies deployed 5G private wireless networks in enterprise business parks and support businesses in the country with 24/7 seamless connectivity. This has enabled enterprises to leverage cutting-edge technologies such as industrial loT, artificial intelligence and machine learning. These, in turn, will significantly expedite the adoption of Industry 4.0 applications and enable a wide range of use cases, including robotics, automation, video analytics, machine vision with real-time video and loT streams, network monitoring, management of devices and more.

Ericsson (ERIC - Free Report) has collaborated with Orange Spain, a prominent mobile operator, to deploy private 5G networks for B2B clients nationwide. Leveraging Ericsson’s industry-leading 5G portfolio, Orange delivers premium services within and beyond enterprise premises, owing to a network infrastructure that integrates both public and private networks. Powered by Ericsson’s dual-mode 5G Core and dedicated network functions, it enables Orange to empower its enterprise customers with extended capabilities of the public commercial network. This framework has played a crucial role in unlocking new use cases and driving innovation across industries such as logistics, transportation, automotive and manufacturing.

Verizon's Price Performance, Valuation and Estimates

Verizon has gained 4% over the past year compared with the industry’s growth of 24.8%

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From a valuation standpoint, Verizon trades at a forward price-to-sales ratio of 1.3, below the industry.

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The Zacks Consensus Estimate for Verizon’s earnings for 2025 has remained static over the past 60 days.

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Verizon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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