Verizon Communications Inc. (VZ - Free Report) recently inked an agreement with the National Basketball Association (“NBA”) to augment network capabilities of all the 29 arenas that host NBA teams. The improved bandwidth connectivity through Verizon’s fiber-optic network will offer high-resolution video to fans across the world to relive the key moments of the match without compromising on finer details.
Verizon will connect each arena with two diversely routed 100G fiber circuits. This is likely to result in a 10-fold increase in network bandwidth to enable seamless transmission of all the sporting actions without any interruption. The company further intends to install about 30 cameras in NBA arenas to cover the events from every possible angle.
Leveraging the extensive fiber network deployment and video broadcast distribution capabilities of its media services division, the strategic deal enables Verizon to better connect with the sporting buffs. Each arena will be connected to network hubs in Newark, NJ and Atlanta, GA, while a dedicated virtual network in Dulles, VA, will be operated by Verizon Media on match days to monitor real-time video traffic quality and data across the network.
The entire fiber network will be managed using Verizon’s Wavelength Services. The company expects the new video distribution network and fiber connectivity to go live by the second half of 2020.
With one of the most efficient wireless networks in the United States, Verizon continues to deploy the latest 4G LTE Advanced technologies to deliver faster peak data speeds and capacity for customers, driven by customer-focused planning, disciplined engineering and constant strategic investment. The company has also been aggressively forging ahead to expand its fiber optics networks to support 4G LTE and upcoming 5G wireless standards, and wireline connections.
Verizon expects considerable business growth in both its Wireless and Wireline businesses in 2019. The company expects healthy improvement in margins on the back of the expected savings from tax reform, and strong FiOS network and strategic services in the Wireline business. Over the years, the largest U.S. wireless carrier by subscribers, has spurred technological innovation and economic development, including introduction of mobile data and making the ecosystem more pervasive with 4G LTE.
We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock. The stock has outperformed the industry in the past year with an average return of 22.8% compared with the 10.8% rise of the latter.
Some better-ranked stocks in the industry are United States Cellular Corporation (USM - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and Gogo Inc. (GOGO - Free Report) and T-Mobile US, Inc. (TMUS - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
United States Cellular surpassed earnings estimates in each of the trailing four quarters, the average positive surprise being 79.3%.
Gogo beat earnings estimates in each of the last four quarters, the average positive surprise being 38.7%.
T-Mobile has a long-term earnings growth expectation of 13%. It beat earnings estimates in each of the preceding four quarters, the average surprise being 12.1%.
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