Verizon's Strategic Acquisition of Starry and Its Implications for MDU Broadband Growth

A high-resolution map of urban U.S. cities with layered visuals of mmWave signal propagation, fiber-optic cables, and 5G towers, illustrating Verizon's integrated approach to MDU broadband deployment. The image highlights key markets like New York, Los Angeles, and Boston, where Starry's existing customer base will be leveraged.

In October 2025, Verizon announced its definitive agreement to acquire Starry, a fixed wireless broadband provider specializing in millimeter wave (mmWave) technology, marking a pivotal step in its strategy to dominate the multi-dwelling unit (MDU) broadband market, as Verizon announced its acquisition of Starry. This acquisition, expected to close in early 2026, aligns with Verizon's broader vision to accelerate 5G and fiber expansion in high-growth urban areas. By integrating Starry's innovative solutions with its existing infrastructure, Verizon aims to deliver high-speed, cost-effective broadband to millions of MDU residents, addressing the unique challenges of dense urban environments, as Broadband Breakfast reports.

Technical Integration: Bridging mmWave and Fiber for Scalable MDU Solutions

Starry's mmWave technology, which Verizon has tested in Texas using 37–39 GHz spectrum, employs a point-to-multipoint (P2MP) architecture to deliver gigabit speeds to MDUs, as an RCR Wireless demo showed. This approach involves a centralized rooftop donor cell connected to a building's internal wiring, bypassing the need for complex fiber pulls to individual units. By leveraging Starry's expertise, Verizon can reduce deployment costs and time, as Network Matters notes, because the P2MP model minimizes reliance on its 4G/5G cores while maintaining low latency and high capacity.

The integration also complements Verizon's fiber expansion plans. In urban areas where pulling fiber to the "last hundred feet" can cost $500–$1,000 per unit, as TechTimes reports, Starry's hybrid-fiber solutions-using existing coaxial or copper wiring-offer a scalable alternative. Verizon's CFO has emphasized that this strategy will enable the company to expand its fixed wireless access (FWA) footprint to 90 million households by 2028, with MDUs accounting for a significant portion of this growth, as Verizon stated.

Competitive Landscape: Outpacing Rivals in the MDU Space

Verizon's move positions it to outmaneuver competitors like Altice USA, which has aggressively expanded its MDU broadband offerings through managed Wi‑Fi solutions and hyper-local marketing, as Lightwave reports. Altice added 32,000 MDUs in 2025 and plans to reach 2 million by year-end, but Verizon's acquisition of Starry-alongside its planned 1‑Gigabit MDU platform-creates a formidable counterstrategy. Starry's existing 100,000 MDU customers in cities like New York and Los Angeles provide an immediate foothold, while its high Net Promoter Score (NPS) underscores customer satisfaction, as Light Reading reported.

Financially, Verizon is investing heavily to solidify its lead. The company projects $17.5–$18.5 billion in 2025 capital expenditures, with a focus on C‑band and mmWave deployment, as Investing News reports. This spending, combined with Starry's proven P2MP model, could enable Verizon to achieve its target of 8–9 million FWA subscribers by 2028-a 50% increase from current levels, according to a PolicyBand memo.

Challenges and Opportunities

Despite its advantages, the acquisition faces hurdles. Past P2MP mmWave solutions, including Starry's own, have struggled with scalability and competition from established fiber and cable providers in gigabit‑speed markets, as Network Matters has noted. However, Verizon's extensive mmWave spectrum holdings and fiber backbone mitigate these risks. The company's ability to streamline deployment-using simplified Broadband Network Gateways and public IP routing-reduces operational complexity, making MDU expansion more viable, as demonstrated in an RCR Wireless demo.

Moreover, the "last hundred feet" challenge in older buildings remains a barrier. Yet, hybrid‑fiber technologies, such as those offered by Actelis Networks, are gaining traction, enabling providers to deliver gigabit speeds without disruptive construction, as TechTimes explains. Verizon's integration of these solutions with Starry's wireless expertise could redefine MDU broadband economics.

Investment Implications

For investors, Verizon's acquisition of Starry represents a calculated bet on the future of urban broadband. The move not only accelerates 5G and fiber deployment but also positions Verizon to capitalize on the $12 billion MDU broadband market, as reported by Lightwave. With regulatory approvals expected in early 2026 and a 2025 MDU‑focused FWA product launch on the horizon, per Light Reading, the company is poised to outperform peers in subscriber growth and market share.

Data query for generating a chart: Line graph showing Verizon's projected FWA subscriber growth (2023–2028), with a separate bar chart comparing MDU broadband market share among major providers (Verizon, Altice, Comcast) in 2025.

Conclusion

Verizon's acquisition of Starry is a masterstroke in the race to dominate MDU broadband. By merging cutting‑edge mmWave technology with fiber and 5G infrastructure, the company is addressing the technical and economic complexities of urban connectivity. As it executes its 2025–2028 expansion plans, investors should closely monitor subscriber growth metrics and capital efficiency, which will determine the long‑term success of this strategic pivot.