Checking Verizon's math on small cells vs. spectrum

BTIG's Walt Piecyk took a hard look at Verizon's math today, asking whether small cells really cost 80 percent less than spectrum. Piecyk notes that Verizon bid $5.2 billion for spectrum in 14 major and mid-sized markets in last year's auction of AWS-3 spectrum before opting out of those cities, choosing instead to invest roughly $1.5 billion in small cells in those markets. And he quotes Verizon CFO Fran Shammo, who recently said the carrier could have spent $6 billion to acquire spectrum in those markets but thought small cells were the better investment.

Piecyk wrote that BTIG "will continue to track Verizon's utilization of its existing spectrum and capital investment, which has been on the rise for the past three years. Verizon continues to assert that it is only using 40 percent of its available spectrum but that allocation is much higher in the markets that matter." Meanwhile, investors will continue to speculate about how much spectrum Verizon has yet to use – and how much it may need to pick up in the upcoming incentive auction. Post

Sponsored by ADI

What if we were always connected? With the help of our advanced wireless technology, even people in the most remote places could always be in touch.

What if there were no ocean, desert, mountain or event that could ever keep us from telling our stories, sharing discoveries or asking for help? ADI’s next-gen communications technology could keep all of us connected.

Suggested Articles

Vodafone Business is building on its edge compute partnership with AWS, launching its its first commercial 5G MEC center in London next spring.

Is there a better mousetrap in terms of macrocell deployment? Facebook Connectivity thinks so.

Speaking at a FierceWireless 5G event this week, a T-Mobile executive said massive MIMO technology is applicable in TDD and FDD domains.