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Verizon Communications Inc. (NYSE: VZ) (NASDAQ: VZ) seeks to partner with one of the tech giants to roll out 5G network service by this year-end, as reported by Bloomberg. It is looking forward to affiliate with either Apple Inc. or Google Inc. to deliver 5G TV using one of the online TV channel service, i.e. Apple TV or YouTube respectively.
The phone giant plans to debut 5G broadband service in households of Los Angeles and Sacramento along with two other cities before this year-end. Without any interest to launch its own TV network, Verizon wants to leverage on strategic collaboration for a quick and robust rollout of 5G network. It is presently discussing pricing and timing of the 5G TV with both Apple and Google.
Both the tech giants did not comment on the subject matter. However, a key point to notice here is that Apple TV service is still not active and the iPhone maker is in no hurry to introduce it before March 2019. On the other side, Google’s YouTube TV channel offers over 60 channels of Live TV for a subscription fee of $40/month.
Meanwhile, we will hear about the newest development on 5G network frontier when Verizon will report its second-quarter earnings today, July 24. The telecom network is projected to earn $1.14 on each share with $31.50 billion in revenue earnings, cites Forbes.
Verizon surrendered its own TV service offerings on the likes of Netflix, Amazon Prime and Sling TV. The preceding month, the company abandoned its in-house free video streaming service, go90 post its failure to attract a wide target audience within a span of a year and a half.
Previously this year, the wireless network provider also ceded a live online TV attempt as the market is packed with offerings from providers such as AT&T’s DirecTV Now and Dish Network Corp.’s Sling TV.
In light of futile efforts to built own video streaming platform, Verizon CFO Matt Elli indicated this May that the strategic collaboration with a tech company would be to “showcase” the power of the fifth-generation wireless technology. This new service will be Verizon’s first competitive live service stretching beyond its East Coast base. It may roll out its own TV platform once it gets comfortable with online video streaming market dynamics.
Using external platform, the company aspires to transmit superfast online services to household subscribers, providing speeds that are at par or exceeding landline connectivity. Verizon will subsequently use 5G network services to sell consumers internet and 5G TV packages to contend nationally against TV and telecom services from AT&T Inc., Comcast Corp. and others.
The other strong competitions come from the recent vertical integration of AT&T and Time Warner along with the probable merger of large telecom rivals T-Mobile and Sprint. However, Verizon CEO Lowell McAdam portrayed a “frankly don’t care” attitude towards all the challengers.
McAdam emphasized that Verizon has developed a progressive infrastructure to distribute 5G network service. The company has deployed huge MIMO antennas to support millimeter band waves. He said in an interview in May, “[w]e’re going to do it regardless, and we’re way ahead of everybody. We’ve made all the investments that are required and fiber and millimeter wave spectrum and those sorts of things,” reports VentureBeat.
Not being threatened by 5G competition, the CEO noted that once the rivals start taking active initiatives in this direction, the combat will not be limited to pricing strategies but network capabilities.