Verizon Investor Day: C-Band auction results

Investor Day

• Acquired 140-200 MHz in each market (total 406; average 161 MHz) of C-band spectrum) for 5G Ultra Wideband in FCC auction 107 (3.7-4.2 GHz), $52.9b
• Plans deployment
• on existing & new sites (7-8k for C-band + 14k for mmWave in 2021), capex 2021-23 $10b
• C-band covered pops: 100m in 12 mo, 175m by 2023, 250m by 2024
• FWA
• coverage15m HH YE 2021, 30m YE 2023, 50m YE 2025
• 5G Home Internet (max 1 Gb/s, typical 300 Mb/s, up 50 Mb/s) currently in 18 markets
• 5G Business Internet in >20 markets YE 2021 (currently in Chicago, Houston, LA)
• MEC
• addressable market $30b by 2025: $10b US public/private, $12b US enterprise, $10b global
• Public MEC with AWS (for developers), Private MEC with Micosoft (for Businesses)
• Financial targets
• revenue growth 2% in 2021, 3% in 2022-23, 4% from 2024
• higher interest 2021-23 $4b
• lower cash taxes 2021-23 $5b
• net debt/EBITDA increases to 2.8 YE 2021 (return to target range 1.75-2.00 in 4-5 yr)
• Other
• LT urban trafiic 50% over mmWave
• FTTS to grow to >50% in 3 yr
• Ongoing Verizon Business transformation, target EBITDA margin 25%
• "One Fiber monetization and scaling 5G opportunities"