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Can VZ Stock Profit From Starry's Expanded Fixed Wireless Access?
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Key Takeaways
Verizon will acquire Starry to strengthen its fixed wireless broadband and urban Internet services.
The deal could double Verizon's fixed wireless subscribers to up to 9M and expand reach to 90M homes.
VZ also aims to acquire Frontier to boost its fiber footprint and enhance broadband and mobility growth.
Verizon Communications Inc. (VZ - Free Report) has inked a definitive agreement to acquire Starry for an undisclosed amount. The acquisition of this leading provider of fixed wireless broadband services augments Verizon’s ability to deliver high-speed Internet to multi-dwelling units (MDUs) and urban communities. The transaction, likely to be completed by the first quarter of 2026, will enable the carrier to double its fixed wireless subscriber base to 8-9 million by 2028 and expand fixed wireless broadband services to 90 million households with an expanded geographic footprint.
Starry offers high-speed Internet services in urban settings across five markets: Boston, New York, Los Angeles, Denver and Washington, D.C. Serving nearly 100,000 MDU customers, it has developed an extensive network infrastructure that leverages millimeter wave technology. The buyout offers Verizon a unique opportunity to integrate this technology with its existing fiber and mmWave assets, providing affordable, high-quality broadband services to urban areas.
VZ Strengthening Fiber Assets
Verizon remains focused on making necessary capital expenditures due to the continued expansion of 5G mmWave in new and existing markets, the densification of the 4G LTE wireless network to cater to huge traffic demands across multiple verticals and the continued deployment of the fiber infrastructure.
The proposed acquisition of Frontier Communications Parent, Inc. (FYBR - Free Report) , the largest pure-play fiber provider in the United States, will likely extend Verizon’s fiber footprint across the country and enable it to deliver premium mobility and broadband services to customers. Post-acquisition, Verizon will integrate Frontier’s state-of-the-art fiber network within its Fios network to boost its industry-leading portfolio of fiber and wireless assets. Additionally, the combination of Frontier’s premium broadband with Verizon’s premium mobile offering is anticipated to improve the customer churn rate by approximately 50% for postpaid mobility. This, in turn, is likely to boost the revenues of the mobility division.
VZ Rides on Wireless Broadband Momentum
Verizon has introduced premium unlimited plans that are translating into significant 5G adoption and fixed wireless broadband momentum. The company is aiming to deploy an extensive 5G Ultra Wideband network across the country, driven by a relentless focus on 5G mobility, nationwide broadband and mobile edge compute and business solutions.
The company’s 5G network hinges on three fundamental drivers to deliver the full potential of next-generation wireless technology. These are massive spectrum holdings, particularly in the millimeter-wave bands for faster data transfer, end-to-end deep fiber resources and the ability to deploy a large number of small cells.
Despite solid wireless traction, Verizon is facing a steady decline in legacy services. The company’s wireline division is struggling with persistent losses in access lines as a result of competitive pressure from voice-over-Internet protocol service providers and aggressive triple-play (voice, data, video) offerings by the cable companies. Moreover, to expand its customer base, Verizon is spending heavily on promotion and offering lucrative discounts, which are weighing on margins and adversely impacting its bottom line.
VZ also recorded high capital expenditures to support the launch and continued build-out of its 5G Ultra Wideband network, deployment of significant fiber assets across the country and upgrade to Intelligent Edge Network architecture. The company operates in a competitive and almost saturated U.S. wireless market. Spectrum crunch has become a major issue in the U.S. telecom industry. Most carriers are finding it increasingly challenging to manage mobile data traffic, which is growing by leaps and bounds. The situation has become even more acute with the growing popularity of iPhone and Android smartphones as well as rising online mobile video streaming, cloud computing and video conferencing services.
Image Source: Zacks Investment Research
Price Performance
Verizon stock has declined 5% in the past year against the industry’s growth of 25.86.3%. It has lagged peers like AT&T Inc. (T - Free Report) and T-Mobile US Inc. (TMUS - Free Report) over this time frame. While AT&T has gained 23%, T-Mobile has risen 6.9%.
One-Year VZ Stock Price Performance
Image Source: Zacks Investment Research
Estimate Revision Trend of VZ
Earnings estimates for Verizon for 2025 have moved down 0.8% to $4.69 over the past year, while the same for 2026 has increased 2.7% to $4.92. The mixed estimate revision depicts that investors are skeptical about the stock’s growth prospects.
Image Source: Zacks Investment Research
End Note
By investing steadily in fiber infrastructure and pioneering new technologies, Verizon is well-positioned to bridge the digital divide and enhance the connectivity landscape nationwide. This is likely to translate into solid subscriber growth, higher average revenue per user and increased broadband and fiber penetration. In addition, Verizon is likely to benefit from the deployment of a cloud-native, container-based, virtualized architecture for higher flexibility, scalability and cost efficiency across its network. The various mix-and-match pricing plans for wireless and home broadband have further led to solid customer additions.
However, a saturated wireless market and price wars owing to competitive pressure have eroded its profitability. The mixed bag of estimate revisions further portrays skepticism about the stock’s growth potential. With a Zacks Rank #3 (Hold), Verizon appears to be treading in the middle of the road, and investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Can VZ Stock Profit From Starry's Expanded Fixed Wireless Access?
Key Takeaways
Verizon Communications Inc. (VZ - Free Report) has inked a definitive agreement to acquire Starry for an undisclosed amount. The acquisition of this leading provider of fixed wireless broadband services augments Verizon’s ability to deliver high-speed Internet to multi-dwelling units (MDUs) and urban communities. The transaction, likely to be completed by the first quarter of 2026, will enable the carrier to double its fixed wireless subscriber base to 8-9 million by 2028 and expand fixed wireless broadband services to 90 million households with an expanded geographic footprint.
Starry offers high-speed Internet services in urban settings across five markets: Boston, New York, Los Angeles, Denver and Washington, D.C. Serving nearly 100,000 MDU customers, it has developed an extensive network infrastructure that leverages millimeter wave technology. The buyout offers Verizon a unique opportunity to integrate this technology with its existing fiber and mmWave assets, providing affordable, high-quality broadband services to urban areas.
VZ Strengthening Fiber Assets
Verizon remains focused on making necessary capital expenditures due to the continued expansion of 5G mmWave in new and existing markets, the densification of the 4G LTE wireless network to cater to huge traffic demands across multiple verticals and the continued deployment of the fiber infrastructure.
The proposed acquisition of Frontier Communications Parent, Inc. (FYBR - Free Report) , the largest pure-play fiber provider in the United States, will likely extend Verizon’s fiber footprint across the country and enable it to deliver premium mobility and broadband services to customers. Post-acquisition, Verizon will integrate Frontier’s state-of-the-art fiber network within its Fios network to boost its industry-leading portfolio of fiber and wireless assets. Additionally, the combination of Frontier’s premium broadband with Verizon’s premium mobile offering is anticipated to improve the customer churn rate by approximately 50% for postpaid mobility. This, in turn, is likely to boost the revenues of the mobility division.
VZ Rides on Wireless Broadband Momentum
Verizon has introduced premium unlimited plans that are translating into significant 5G adoption and fixed wireless broadband momentum. The company is aiming to deploy an extensive 5G Ultra Wideband network across the country, driven by a relentless focus on 5G mobility, nationwide broadband and mobile edge compute and business solutions.
The company’s 5G network hinges on three fundamental drivers to deliver the full potential of next-generation wireless technology. These are massive spectrum holdings, particularly in the millimeter-wave bands for faster data transfer, end-to-end deep fiber resources and the ability to deploy a large number of small cells.
Depleting Margins, Eroding Legacy Services: VZ’s Headwinds
Despite solid wireless traction, Verizon is facing a steady decline in legacy services. The company’s wireline division is struggling with persistent losses in access lines as a result of competitive pressure from voice-over-Internet protocol service providers and aggressive triple-play (voice, data, video) offerings by the cable companies. Moreover, to expand its customer base, Verizon is spending heavily on promotion and offering lucrative discounts, which are weighing on margins and adversely impacting its bottom line.
VZ also recorded high capital expenditures to support the launch and continued build-out of its 5G Ultra Wideband network, deployment of significant fiber assets across the country and upgrade to Intelligent Edge Network architecture. The company operates in a competitive and almost saturated U.S. wireless market. Spectrum crunch has become a major issue in the U.S. telecom industry. Most carriers are finding it increasingly challenging to manage mobile data traffic, which is growing by leaps and bounds. The situation has become even more acute with the growing popularity of iPhone and Android smartphones as well as rising online mobile video streaming, cloud computing and video conferencing services.
Image Source: Zacks Investment Research
Price Performance
Verizon stock has declined 5% in the past year against the industry’s growth of 25.86.3%. It has lagged peers like AT&T Inc. (T - Free Report) and T-Mobile US Inc. (TMUS - Free Report) over this time frame. While AT&T has gained 23%, T-Mobile has risen 6.9%.
One-Year VZ Stock Price Performance
Image Source: Zacks Investment Research
Estimate Revision Trend of VZ
Earnings estimates for Verizon for 2025 have moved down 0.8% to $4.69 over the past year, while the same for 2026 has increased 2.7% to $4.92. The mixed estimate revision depicts that investors are skeptical about the stock’s growth prospects.
Image Source: Zacks Investment Research
End Note
By investing steadily in fiber infrastructure and pioneering new technologies, Verizon is well-positioned to bridge the digital divide and enhance the connectivity landscape nationwide. This is likely to translate into solid subscriber growth, higher average revenue per user and increased broadband and fiber penetration. In addition, Verizon is likely to benefit from the deployment of a cloud-native, container-based, virtualized architecture for higher flexibility, scalability and cost efficiency across its network. The various mix-and-match pricing plans for wireless and home broadband have further led to solid customer additions.
However, a saturated wireless market and price wars owing to competitive pressure have eroded its profitability. The mixed bag of estimate revisions further portrays skepticism about the stock’s growth potential. With a Zacks Rank #3 (Hold), Verizon appears to be treading in the middle of the road, and investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.