Verizon Communications Inc. (VZ - Free Report) recently teamed up with Amazon.com, Inc.’s (AMZN - Free Report) cloud computing arm, Amazon Web Services (“AWS”), to create and deploy low latency applications to mobile devices using 5G and became the first telecom carrier in the world to offer such service. The company will leverage AWS Wavelength to deploy consistent and flexible AWS experience across 5G edge compute facilities.
Per the deal, business enterprises will be able to download latency-sensitive data from the cloud at a much faster speed than a typical 4G network. The demonstration of the technology was done at AWS re:Invent 2019, a learning conference hosted by AWS for the global cloud computing community.
The combined technology will enable AWS developers to deliver ultra-low latency applications such as live video streaming, machine learning inference at the edge, and augmented and virtual reality, leveraging Verizon’s 5G Ultra Wideband network. The cloud computing juggernaut also unveiled a new infrastructure, Local Zones, that will aid users run speed-intensive applications like gaming. The much-awaited digital transformation seems to be the call of the hour to harness edge computing capabilities with increased 5G deployments, giving rise to large volume of data.
Currently, AWS Wavelength is being trialed in Verizon’s 5G Mobile Edge Compute solution by select high-profile customers in Chicago. It intends to collaborate with other leading-edge telecom companies like SK Telecom, Vodafone and KDDI to launch AWS Wavelength across Europe, South Korea and Japan in 2020.
With one of the most efficient wireless networks in the United States, Verizon continues to deploy state-of-the-art technologies to solve complex business challenges and deliver increased capacity, lower latency and faster speeds for customers. In the enterprise and wholesale business, the company is changing its revenue mix toward newer growth services like cloud, security and professional services. It intends to capitalize on the countless innovative technology solutions being developed in the IoT and telematics ecosystem across multiple industries.
Markedly, Verizon is seeking competitive edge in a saturated and price-sensitive market, which includes major players like AT&T Inc. (T - Free Report) and T-Mobile US, Inc. (TMUS - Free Report) . The company’s latest move is directed at upping the ante against rivals. This would enable it to promote the latest 5G breakthroughs, backed by customer-focused planning, disciplined engineering and constant strategic investments. The telecom bellwether aims to retain its lead in promulgating next-gen 5G mobile networks nationwide by using virtualized machines, advanced levels of operational automation, flexibility and adaptability, which is likely to strengthen its market position and enhance revenues.
Verizon has long-term earnings growth expectation of 3.2%. Driven by strength in wireless business, the stock has gained 7% compared with the industry’s growth of 16.2% in the year-to-date period.
It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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