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Challenges Loom for Verizon as 5G Launch Starts, Macquarie Says

The launch of 5G offers benefits and challenges to Verizon, Macquarie’s Amy Yong wrote investors. “5G home broadband faces three hurdles: 1) the technology is unproven; 2) Fios’ execution set the bar high; and 3) cable already offers 1 Gbps speeds." The analyst compared the launch with that of Fios: “This time, Verizon is much smarter but so is cable.” Based on Macquarie's survey, 64 percent wouldn't pay a premium to cable for Verizon’s 1 Gbps speeds. Verizon also has learned from its Fios experience, she said. “Its Fios deployment was met with long/messy municipality approval processes.” The initial 5G cities -- Los Angeles, Sacramento, Houston and Indianapolis -- "were picked based on fiber access, topography, population density, ease of municipal approval and competitive landscape,” she said.