Verizon at UBS Conference Notes

Lowell McAdam – Chairman and CEO

5G could change the architecture of the network to the home

“Well, so let’s be clear on what we mean by 5G, I call it wireless fiber. If you think about the way we deploy files today, we go fiber all the way into the home and then WiFi within the home. This will allow you to stop anywhere from 200 feet to a 1000 feet somewhere in that range we think from the home and then make it a wireless last leg into the home, and I think that’s going to be the predominant architecture for wireless service going forward. Obviously, if you have large multiple dwelling unit high rises, large businesses, you can take fiber the rest of the way in. Our plan is to offer 1 gigabit broadband service to them, and then over the top bundle, we could dwell all the way to a 300 channel bundle.”

We’re going to be 2-3 years out ahead in 5G

“So the devices are going to be extremely simple, it’s basically the kind of router that you have in your home only with a 5G chip in it versus the fiber conversion chip. So the time to market is greatly compressed for us, we don’t need to worry about handsets and tablets and mobility handovers and that sort of thing. That is the business case that approves 5G. So what happens with use cases around autonomous cars and tablets and those sorts of things that will be dependent on the standards bodies which everyone speculates to 2020. I think it might be a year earlier than that. There’s a lot more interest around those standards at this point. But at that point, we’ll be two to three years out ahead of competition on this sort of a deployment. Others are going to have to wait for that spectrum to be found, to be auctioned and as you see from the 600 megahertz auction process those can be elongated.”

See lots of opportunities to deploy capital

“Well, people always are waiting for us to say we’re going to reduce our capital and you do see some companies go way up for a while and way down for a while. Our philosophy has always been sort of steady state. If I stand up here and say we’re going to reduce our capital by a large amount that means we don’t see opportunity. And in front of us right now, not only with 4G densification, but 5G deployments we see lots of opportunity for this.”