Ivan Seidenberg 200Suddenly, it's possible and happening. Costs are down; performance and reach up; "commercial deployments" moved to 2019 by Verizon and AT&T; mobile may be ready for 2020. Engineers like NTT CTO Seizo Inoe are moving up their forecasts for time to revenue. Tests are going better than expected. Most of the challenges holding back big telcos are being solved.  

Nothing is certain, but many top engineers are close to convinced. I believe McAdam at Verizon has decided to go full speed ahead. Six months ago, then CFO Fran Shammo told Wall Street not to put 5G into their capex models for several years. He wanted to see the test results in 2018 before going ahead. Since then, Fran's been replaced by Matt Ellis. Verizon changed 2017 test plans from a few homes near their Boston research labs to 11 cities around the country. They've made a firm commitment to a "commercial deployment" of fixed in 2019.

Verizon engineers are enthused about what they've seen in testing around the world. 

Verizon in particular needs the capacity, must reinforce a reputation as the best, wants a lever for regulators, and needs a dramatic recovery from their worst quarter in a decade. Cable is killing them in the half of their territory without Fios. Customers are hemorrhaging to Sprint and especially T-Mobile. Don't cry for Lowell McAdam; they still made $3.5B in this "worst quarter." These are the factors I see particular to Verizon. 

  • The cost has come down and mmWave technology improved so much in the last year it's now clearly practical.
  • Verizon's entire business model is based on providing much better service at a higher price. T-Mobile and AT&T have come so close to Verizon quality most people won't see any difference. Being the first in the world to 5G mmWave will be great for their image. Even if they spend $5B more than seems rational today, it's worth it for the pr and marketing.
  • Speeds went down 14% when they were dragged kicking and screaming to offer "unlimited." They put a brave face on but really weren't ready. The T-Mobile/Ookla data claim they are now slower than AT&T. Traffic growth on wireless had been plunging from 100% in early smartphone days to 40-45%. Cisco (and I) predicted further falls. That reversed with "unlimited" in Q4 2016. They'll get some breathing room with 4x4 MIMO, 256 QAM, and adding two bands of LTE in the 40 MHz they have fallowBut they soon will need capacity they hadn't planned for. They will need capacity. The small cells going in will have Gig LTE as well as 5G fixed, doubling capacity in a smaller area. They will be upgraded to 5G mobile as soon as ready (?2020-2021.)  After the upgrade, they will have far more capacity than anyone else.
  • Lowell knows it can be done because a decade ago he built the largest mobile network in the world. He was CEO of Verizon Wireless when they built 4G LTE to 97 % of the U.S. from 2009-2012. When they started, no one else was confident in the technology. The risk paid off. It was installed on time and on budget. They had a glorious run as AT&T took two years to catch up and T-Mobile took five. Many worldwide have passed Verizon since and some of the gear is now outdated. By 2015, T-Mobile built an almost comparable network in half the time for half the price. Time to jump ahead again.
  • AT&T has begun going out of territory with wireless to the rooftop. This will allow VZ to counter in AT&T territory and discourage T in VZ territory.
  • Lowell McAdam wants to leave a legacy. Predecessor Ivan Seidenberg ran fiber passed 17M homes, still the largest fiber home network in the West. Seidenberg also led the entire company in 2009 when they built LTE to 97% of the U.S. Eight years later, BT hasn't covered even 75% of the U.K.
  • 5G mmWave will be a powerful competition-killer. A year ago, Verizon was enthusiastic about 5G but uncertain even one mmWave network would be profitable.Now, I believe they and AT&T will both likely build. The combined market cap is over $400B, enough to invest $40B each spread over 6 years. Sprint's total stock value is less than $40B and T-Mobile only a little more. Even if they could finance the deal, it's almost impossible for three 5G networks to make it, much less the four to seven usually needed for competition to work well.
    "mmWave is an incumbent's game," a CTO confirmed to me in private. As Verizon is losing customers, they have more incentive than ever to force out others. Washingtonians, both Democrat and Republican, are burying their heads in the sand on this. We need policy that will work when wireless competition is cut almost in half. We may have ten years but problems could become acute in five.  

dave ask


Vivo is selling new the iQOO 5G premium quality phone for US$536.

Lei Jun Xiaomi "5G to have explosive growth starting from Q2 2020"5G to have explosive growth starting from Q2 2020" I say sooner

Verizon CEO Ronan Dunne: >1/2 VZ 5G "will approximate to a good 4G service" Midband in "low hundreds" Mbps

CFO John Stephens says AT&T is going to cut capex soon.

Bharti in India has lost 45M customers who did not want to pay the minimum USS2/month. It's shutting down 3G to free some spectrum for 4G. It is cutting capex, dangerous when the 12 gigabytes/month of use continues to rise.

Huawei in 16 days sold 1,000,000 5G Mate 20s.  

China has over 50,000 upgraded base stations and may have more than 200,000 by yearend 2019. The growth is astonishing and about to accelerate. China will have more 5G than North America and Europe combined for several years.

5G phone prices are down to $580 in China from Oppo. Headed under $300 in 2020 and driving demand.

No one believed me when I wrote in May, 90% of Huawei U.S. purchases can be rapidly replaced and that Huawei would survive and thrive. Financial results are in, with 23% growth and increased phone sales. It is spending $17B on research in 2019, up > 10%. 

5G phones spotted from Sharp and Sony

NTT DOCOMO will begin "pre-commercial service Sept 20 with over 100 live bases. Officially, the commercial start is 2020.

 More newsfeed


Welcome  1,800,000 Koreans bought 5G in the first four months. The demand is there, and most of the technology works. Meanwhile, the hype is unreal. Time for reporting closer to the truth.

The estimates you hear about 5G costs are wildly exaggerated. Verizon is building the most advanced wireless network while reducing capex. Deutsche Telekom and Orange/France Telecom also confirm they won't raise capex.

Massive MIMO in either 4G or "5G" can increase capacity 3X to 7X, including putting 2.3 GHz to 4.2 GHz to use. Carrier Aggregation, 256 QAM, and other tools double and triple that. Verizon sees cost/bit dropping 40% per year.

Cisco & others see traffic growth slowing to 30%/year or less.  I infer overcapacity almost everywhere.  

Believe it or not, 80+% of 5G (mid-band) for several years will be slower than good 4G, which is more developed.