Verizon Shuns Satellite MVNO

Verizon just closed its Frontier deal and is betting big on fiber to fuel its next wave of growth, with management aiming for over 32 million homes passed by the end of the year. That’s on top of 341,000 broadband net adds last quarter, including a healthy dose of fixed wireless. But here’s what’s at stake: only 20% of Verizon’s customers buy broadband today, so the real game is whether Verizon can cross-sell bundles and outpace rivals like AT&T—who’s snapping up Lumen assets—and T-Mobile, who’s taking a more selective approach with joint ventures.

But there’s a catch. In Pennsylvania, Verizon just lost a battle over labor rules tied to state broadband grants, locking in higher build costs for fiber projects. That decision, along with the patchwork of grant requirements in New York and new price caps for low-income broadband, could make fiber expansion more expensive, pushing Verizon to rely more on fixed wireless in rural areas. Meanwhile, satellite providers like SpaceX and Amazon are circling, eyeing a future where a satellite MVNO could disrupt the market—yet for now, Verizon is steering clear, wary of margin risks, even as rivals and regulators keep a close watch.

Featuring insights from Verizon earnings calls and on-the-ground reporting from Connect X and state broadband programs.

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