Verizon Eyeing New Customers, Entertainment Options for 5G

Verizon last October became the first telecom to launch residential 5G network coverage, with rollouts in Los Angeles, Houston, Indianapolis and Sacramento, Calif.

The $70 monthly (after 90-day free trial) service includes the choice of a free Apple TV device with 4K functionality or Google Chromecast device, and 90-days of access to online TV platform YouTube TV or Apple Music.

Verizon contends there is an addressable market of 30 million households for 5G – with about 50% first-time customers to the telecom.

Speaking Jan. 8 at Citi 2019 Global TMT West confab in Las Vegas, Ronan Dunne, president of Verizon Wireless, said early consumer feedback on the rollout is encouraging considering the dearth of 5G-combatible smartphones on the market.

Indeed, Verizon only revealed its first branded 5G smartphone – Motorola’s Moto Z3 – the day before the begin of CES Las Vegas. Samsung is making another one for the telecom.

Dunne said that unlike the challenging Fios pay-TV landscape, 5G promises new connections and content opportunities for creators.

“I think the whole content area will evolve … with developments of new genres of the snacking content, the short format content, which is so natural to the mobility space,” he said.

The executive doesn’t think 5G will necessarily be a lifeline to the existing pay-TV business model. Instead, Dunne believes 5G will enable a new business model that will evolve through a combination of what’s happening in the content space and the way people are accessing connectivity.

“Lots of people won’t have a traditional wireline [pay-TV] relationship, in which case they don’t need to buy 600 channels that they don’t watch,” he said.

 

 

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