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Business / Telecommunications

Verizon Acquires Starry to Expand Fixed Wireless Broadband

Verizon Communications Inc. (NYSE, Nasdaq: VZ) has announced a definitive agreement to acquire Starry, a Boston-based fixed wireless broadband provider. This acquisition aims to bolster Verizon's ability to deliver high-speed internet to mu...

Verizon accelerates fixed wireless broadband expansion with acquisition of Starry
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Verizon Acquires Starry to Expand Fixed Wireless Broadband Image via Verizon

Key Insights

  • Verizon is acquiring Starry to expand its fixed wireless broadband services, particularly in MDUs and urban areas.
  • The acquisition is expected to close by the first quarter of 2026, pending regulatory approvals.
  • Starry currently serves nearly 100,000 MDU customers in five markets: Boston, New York, Los Angeles, Denver, and Washington, D.C.
  • This move will help Verizon double its fixed wireless subscribers to 8-9 million by 2028 and expand availability to 90 million households.
  • Starry’s Net Promoter Score (NPS) is nearly double the industry average, indicating high customer satisfaction.

In-Depth Analysis

Verizon's acquisition of Starry is a strategic move to enhance its fixed wireless access (FWA) capabilities. Starry's focus on multi-dwelling units (MDUs) aligns with Verizon's goal to extend its broadband services in dense urban areas. By integrating Starry's millimeter wave technology, Verizon can offer high-speed internet with a less expensive and quicker deployment approach.

Verizon is also focused on strengthening its fiber assets. Verizon’s proposed acquisition of Frontier Communications Parent, Inc. FYBR, the largest pure-play fiber provider in the United States, will likely extend Verizon’s fiber footprint across the country and enable it to deliver premium mobility and broadband services to customers.

The company's 5G network hinges on three fundamental drivers to deliver the full potential of next-generation wireless technology. These are massive spectrum holdings, particularly in the millimeter-wave bands for faster data transfer, end-to-end deep fiber resources and the ability to deploy a large number of small cells.

VZ stock has declined 5% in the past year against the industry’s growth of 25.86.3%. It has lagged peers like AT&T Inc. T and T-Mobile US Inc. TMUS over this time frame.

**How to Prepare:**

  • Consumers in MDUs should check for availability of Verizon's expanded fixed wireless options.
  • Investors should monitor Verizon's integration of Starry and its impact on subscriber growth.

**Who This Affects Most:**

  • Urban residents in MDUs seeking affordable, high-speed internet.
  • Verizon customers looking for reliable broadband options.
  • VZ stockholders

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FAQ

What is Verizon acquiring?

Verizon is acquiring Starry, a fixed wireless broadband provider.

Why is Verizon acquiring Starry?

To expand its high-speed internet services to multi-dwelling units (MDUs) and urban areas.

When is the acquisition expected to close?

By the first quarter of 2026.

Where does Starry currently operate?

Boston, New York, Los Angeles, Denver, and Washington, D.C.

Takeaways

  • Verizon's acquisition of Starry will lead to expanded fixed wireless broadband options for urban residents.
  • The integration of Starry's technology will likely result in more affordable and efficient broadband services.
  • This move positions Verizon to compete more effectively in the high-speed internet market.
  • Keep an eye on Verizon's progress in deploying and integrating Starry's network for potential service improvements.

Discussion

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Sources

Disclaimer

This article was compiled by Yanuki using publicly available data and trending information. The content may summarize or reference third-party sources that have not been independently verified. While we aim to provide timely and accurate insights, the information presented may be incomplete or outdated.

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