Verizon Communications Inc. (NYSE, Nasdaq: VZ) was established in 2000. It is one of the biggest global technology and communications service providers. The firm is based in New York City and has operations in over 150 countries. Verizon’s revenues stood at $134. 0 billion in 2023. Verizon offers data, video and voice services, as well as solutions on its networks and platforms which deliver on customers’ demand for mobility, secure network connectivity and reliability.

Verizon partners with AST SpaceMobile

One of the latest partnerships of Verizon which has attracted media attention is the one with space-based broadband company AST SpaceMobile.  Verizon has invested $100 million to support the deployment of AST SpaceMobile’s direct-to-cellular service. The project will focus on expanding cellular connectivity across the continental United States, including remote areas where land-based infrastructure cannot reach.

The companies’ plans were announced on Wednesday (29 May 2024), and they will target 100% geographical coverage of the continental U.S. from space on premium 850 MHz cellular spectrum.

Earlier in May another agreement was announced  with AT&T Inc. to provide the AST’s space-based broadband network direct to “every day” cell phones. AST had secured a strategic investment from AT&T, Alphabet Inc.’s Google and Vodafone Group.  UBS analyst Christopher Schoell wrote in a note released on Wednesday that the Verizon deal is “another vote of confidence” from the largest US wireless carrier.

The deal

ST SpaceMobile & Verizon intend to provide 100% geographical coverage to the continental United States of America from space using the superior 850 MHz cellular spectrum.

“This new partnership with Verizon will enable AST SpaceMobile to target 100% coverage of the continental United States on premium 850 MHz spectrum with two major U.S. mobile operators in the most valuable wireless market in the world, a transformational commercial milestone,” said Abel Avellan, Founder, Chairman, and CEO of AST SpaceMobile. “This partnership will enhance cellular connectivity in the United States, essentially eliminating dead zones and empowering remote areas of the country with space-based connectivity.”

Successively linking Verizon’s best-in-class terrestrial mobile network, the multi-carrier 850 Mhz band, and the most expansive and powerful commercial communications arrays on low Earth orbit ever, cellular users are expected to remain connected regardless of their location within the continental United States.  The $100 million from Verizon includes $65 million of commercial prepayments, $45 million of which are subject to certain conditions, and $35 million of convertible notes.

Verizon adds Peacock to its streaming subscription hub

Another interesting piece of news for Verizon is the latest addition of Peacock, the streaming service from NBCUniversal. Verizon said on Tuesday (28 May) that it included Comcast’s (CMCSA. O) Peacock to the streaming SVN service list and aims to present the YouTube Premium service at a discount with the myPlan subscriptions.

The telecom firm announced YouTube Premium at $10 per month for its myPlan clients which is 30 percent cheaper than the usual price starting Thursday.

Peacock streaming service is from NBCUniversal, and +play is from Verizon; the partnership will start streaming from 5 June. In mid-July, Comcast said that it was increasing Peacock subscriptions just before the Olympics starting in Paris in the summer.

Peacock premium, the tier where the ads will be present, will go for $7.99 and $13.99 for premium plus without adverts, which they do not have at the moment.

The company has some myPlan options and streaming bundles allowing for services of Netflix and Warner Bros Discovery’s Max at discounted prices. The company launched a new promotion for a half-year’s free access to Disney’s (DIS. N), for the newly joined and those who are subscribed to some of the plans.

Verizon also unveiled the Ultimate Phone Upgrade program that provides customers on the Unlimited Ultimate wireless plan with their best phone and device promos in exchange for their old phone.

Verizon and Google

Google has awarded the Verizon Business as a Verified Peering Provider [VPP]. Steve Szabo, the Vice President of Technology Enablement at Verizon Business explained that the VPP status will enable

Verizon Business to promote its product as  “dedicated and optimised internet connection for cloud services.” As he remarked, the user base is essentially purchasing Google Cloud applications and services. This could be big businesses and large enterprises, with the latter being the most relevant customer group. With telecommunications, Verizon will sell dedicated internet connection from the Google Cloud user directly to regional POPs/ meet-me points, with the operational intricacies involved in it dealt with by the customer, according to Szabo.

“Our connection is certified by Google to meet or exceed all requirements for performance and reliability,” Szabo added.

The numbers of POPs a customer connects with will be application-dependent and will be determined by such factors as circuity diversity requirements and geographic regions.

Besides the Google Cloud, customers also would be able to link the VPP service to the Google Workspace and Google APIs, based on the press statement by Verizon. The release also specifies that VPP services are valuable for the clients who have latency-sensitive Saas service edge (SASE) or intricate SD-WAN migration solutions with Google cloud.

Google awards providers with the Gold VPP and the Silver VPP. Gold VPP members have physically diverse connectivity to Google in several metropolitan regions while silver VPP means they have physically diverse connectivity in one region. Google lists Verizon Communications as a member of its Very Large Peering Provider or VPP program; albeit, Google now uses the Gold VPP categorisation in North America & Europe. AT&T Business, Comcast, Lumen, and several other global providers have the same status in North America.

Verizon stock performance

Verizon Communications Inc. stock underperformed on Monday (3 June 2024) when compared to competitors’ stocks breaking a two-day winning streak. Shares of Verizon Communications Inc. were down by 0.41% to $40.98 on Monday, during a mixed trading session for the stock market, with the S&P 500 Index SPX up by 0.11% to 5,283.40 and the Dow Jones Industrial Average DJIA down by 0.30% to 38,571.03. Verizon Communications Inc. had reached a 52-week high ($43.42) on 4 April.

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