Verizon Communications’ (NYSE:VZ) reliance on millimeter-wave or mmWave spectrum for its 5G rollout has kicked up a storm. T-Mobile (TMUS) CEO John Legere has ridiculed Verizon’s 5G strategy, describing it as “clueless” and “dead in the water.” According to the T-Mobile executive, it is almost impossible for Verizon rely on mmWave to deploy a nationwide 5G network. However, Verizon quickly countered, saying it actually has a secret 5G plan. According to Verizon, keeping its 5G plan secret is a competitive advantage.
Verizon became the first major wireless operator to begin offering 5G service in the United States. Verizon’s initial 5G service launched in October last year in four cities. AT&T Inc. (NYSE:T) followed the launch of its 5G service in a dozen cities in December. T-Mobile (NASDAQ:TMUS) and Sprint Corp (NYSE:S) began rolling out 5G service a few months ago.
Despite Verizon saying that it has a secret 5G plan and that its 5G strategy isn’t clueless, T-Mobile continues to differ. T-Mobile’s chief technology officer, Neville Ray, wondered what secret 5G plan Verizon would have beyond mmWave.
Verizon has used mmWave spectrum for the initial rollout of its 5G network. While mmWave delivers fast download speeds, it only covers short distances. If Verizon is only going to rely on mmWave for its 5G strategy, then it may be difficult for it to deploy a nationwide 5G network quickly.
5G is a big deal as there is strong demand for it. Ericsson predicts that there will be 1.9 billion 5G subscribers globally by 2024. Ericsson further says North America will lead in 5G uptake. Verizon lost 0.67% in the previous trading session to close at $55.22 on a volume of 18.9 million shares. The current price is slightly below the 50 Day MA of $56.68, while the 200 Day MA is at $56.10.