Top Wall Streeter follows the evidence. Verizon has said nothing about definite plans and refuses to confirm anything. I knew I was taking a risk last month when I reported they were going ahead on the largest 5G network this side of China. An error on something this big would really hurt my reputation. I went ahead because Lowell McAdam and team are experienced and very smart. Their actions are carefully planned.

Verizon would not be spending $4-7B on fiber backhaul unless they were putting $10's of billions of gear in the field. Moffett and Del Deo confirm that $1B spent of fiber implies an investment about five times greater when labor and other costs are added.

Verizon would have bought some spectrum in the auction unless they had alternate plans to add a great deal of capacity. One report has speeds on the Verizon network falling 14% since they went unlimited. Wireless growth had been falling, but with "unlimited" people aren't switching to Wi-Fi as much. The evidence is early but the trend pretty clear.

No one, not even Verizon, can offer reliable coast estimates on the 5G small cell build. There is simply no data. 

Estimates range from 150-500 homes served per cell. Verizon intended a modest trial of mmWave in 2017, mostly in suburban areas in Massachusetts. Suddenly, a few months ago. Verizon expanded trials to 11 cities with very different building patterns. They need the information for planning.

We do know that the likely relative cost of a 5G network has gone down dramatically in the last 18 months or so. Inoe of NTT DOCOMO is a primary source. Using multiple antennas to focus the signal (beamforming) is working well. Ericsson has done some testing with impressive results.

What we don't know is whether the beamforming and other improvements yield an extraordinary increase in the number of homes that can be served. Chet Kanoja of Starry believes he can serve enough customers from each node to make a profit at $50 all included for 200/200 wireless service.That implies a high number of homes servable.

Even if we knew costs, the financial model will be very uncertain until we know how many customers will subscribe at what price. Verizon is telling the street they expect to win something like 30% of cable customers. That seems high to me, at east without prohibitively high customer acquisition costs. Cable is now 50-70 megabits for standard service, more than enough for most people.

Verizon can justify the network expense in many ways, including creating a bleak outlook for competitors. 5G mmWave is likely a competition killer. Verizon's biggest problem is competition is eroding the traditionally massive margins they and AT&T have maintained for almost a decade.

D/M  raise doubts about the economics of building one mmWave network, much less threeor four.

 

 

dave ask

Newsfeed

The 3.3-4.2 spectrum should be shared, not exclusively used by one company, concludes an important U.S. Defense Innovation Board report. If more wireless broadband is important, sharing is of course right because shared networks can yield far more

It does work! Verizon's mmWave tests over a gigabit in the real world. 
The $669 OnePlus 7 Pro outclasses the best Apples and probably the new Galaxy 10 or Huawei P30 Pro. Optical zoom, three cameras, liquid cooling, Qualcomm 855 and more.
Korea at 400,000 5G May 15. Chinese "pre-commercial" signing customers, 60,000-120,000 base stations in 2019, million+ remarkable soon. 
5G phones Huawei Mate 20, Samsung Galaxy 10, ZTE Nubia, LG V50, and OPPO are all on sale at China Unicom. All cost US$1,000 to 1,500 before subsidy. Xiaomi promises US$600.
Natural monopoly? Vodafone & Telecom Italia to share 5G, invite all other companies to join.
Huawei predicts 5G phones for US$200 in 2021, $300 even earlier
NY Times says "5G is dangerous" is a Russian plot. Really.
Althiostar raised US$114 million for a virtual RAN system in the cloud. Rakuten, Japan's new #4, is using it and invested.
Ireland is proposing a US$3 billion subsidy for rural fibre that will be much too expensive. Politics.
Telefonica Brazil has 9M FTTH homes passed and will add 6M more within two years. Adjusted for population, that's more than the U.S. The CEO publicly urged other carriers to raise prices together.
CableLabs and Cisco have developed Low Latency XHaul (LLX) with 5-15 ms latency for 5G backhaul,  U.S. cable is soon to come in very strong in wireless. Details 
Korea Telecom won 100,000 5G customers in the first month. SK & LG added 150,000 more. KT has 37,500 cells. planning 90% of the country by yearend. 
The Chinese giants expect 60,000 to 90,000 5G cells by the end of 2019.
China Telecom's Yang Xin warns, "Real large-scale deployment of operators' edge computing may be after 2021." Customers are hard to find.
Reliance Jio registered 97.5% 4G availability across India in Open Signal testing. Best in world.

More newsfeed

----------

Welcome On Oct 1, 2019 Verizon turned on the first $20B 5G mmWave network with extraordinary hopes. The actual early results have been dismal. Good engineers tell me that will change. Meanwhile, the hype is unreal. Time for reporting closer to the truth.

The estimates you hear about 5G costs are wildly exaggerated. Verizon is building the most advanced wireless network while reducing capex. Deutsche Telekom and Orange/France Telecom also confirm they won't raise capex.

Massive MIMO in either 4G or "5G" can increase capacity 3X to 7X, including putting 2.3 GHz to 4.2 GHz to use. Carrier Aggregation, 256 QAM, and other tools double and triple that. Verizon sees cost/bit dropping 40% per year.

Cisco & others see traffic growth slowing to 30%/year or less.  I infer overcapacity almost everywhere.  

Believe it or not, 80% of 5G (mid-band) for several years will be slower than good 4G, which is more developed.