Verizon's Strategic Acquisition of Starry: A Catalyst for 5G Growth and Shareholder Value

Verizon's acquisition of Starry, a next-generation fixed wireless broadband provider, marks a pivotal step in the telecom giant's strategy to dominate the 5G and broadband markets. By integrating Starry's millimeter wave (mmWave) technology and urban customer base, Verizon aims to accelerate its fixed wireless access (FWA) expansion, drive revenue growth, and solidify its competitive edge. This move, expected to close in early 2026, aligns with Verizon's broader vision to deliver high-speed, cost-effective connectivity to 90 million households by 2028 while doubling its FWA subscriber base to 8–9 million during the same period, according to a Verizon press release.

Strategic Rationale: Leveraging mmWave Technology for Urban Broadband

Starry's mmWave technology is a cornerstone of Verizon's strategy to address the challenges of urban broadband deployment. Traditional fiber-to-the-home solutions are capital-intensive and time-consuming, but Starry's gigabit-capable wireless technology reduces deployment costs by nearly 99% and slashes installation timelines, as described in an Anokiwave release. This efficiency stems from Starry's use of affordable customer premises equipment (CPE) operating on 24GHz and 37GHz spectrum bands, which Verizon can now leverage to scale its FWA offerings in densely populated areas, as noted in a Panmore profile.

According to a Qorvo report, mmWave technology, when combined with mid-band frequencies, creates a layered network architecture that optimizes both coverage and capacity. This approach is particularly effective in urban environments, where high household density justifies the investment in high-capacity infrastructure. By acquiring Starry, Verizon gains immediate access to a proven model for delivering fiber-like speeds over wireless connections, challenging traditional cable providers and enhancing its value proposition for multi-dwelling units (MDUs), as highlighted in a Morningstar article.

Financial Impact: EBITDA Growth and Revenue Projections

Verizon's Q2 2025 financial results underscore the company's momentum. Consolidated adjusted EBITDA reached $12.8 billion, a 4.1% year-over-year increase, driven by wireless service revenue growth and FWA expansion, per Verizon guidance. The acquisition of Starry is expected to amplify these trends. Analysts project that Verizon's FWA subscriber base, which grew by 34.2% in 2025 to 5.1 million, will double by 2028, contributing significantly to revenue and EBITDA.

Data from Yahoo Finance analysis indicates a 2.5–3.5% EBITDA growth rate for 2025, fueled by infrastructure investments and operational efficiencies. The integration of Starry's cost-cutting measures-such as reduced capital expenditures and workforce optimization-further strengthens Verizon's financial outlook. Starry's path to profitability in early 2025, combined with its focus on ARPU growth through speed upgrades, positions the acquisition as a high-margin growth driver, according to a Light Reading piece.

Competitive Positioning: Differentiation Through Innovation

Verizon's acquisition of Starry reinforces its differentiation strategy, which emphasizes quality and technological leadership. As noted in a 2025 Latterly SWOT analysis, Verizon's extensive fiber backbone and mmWave spectrum holdings, now augmented by Starry's capabilities, create a formidable barrier to entry for competitors like AT&T and T-Mobile. This strategic depth is critical in a market where 5G adoption and broadband demand are accelerating.

The acquisition also aligns with Verizon's history of leveraging M&A to expand its footprint. Past deals, such as the acquisitions of TracFone and Alltel, have consistently bolstered its subscriber base and infrastructure. Similarly, Starry's urban MDU expertise complements Verizon's existing strengths, enabling the company to target underserved segments in high-growth markets, as detailed in a Mandae Equilibrium analysis.

Long-Term Shareholder Value: A Path Forward

For long-term investors, the Starry acquisition represents a strategic bet on the future of connectivity. By reducing deployment costs and accelerating FWA adoption, Verizon can capture market share in urban areas while maintaining profitability. Analysts at Morningstar highlight that Verizon's focus on scalable, high-margin broadband services-coupled with its robust balance sheet-positions it to outperform peers in a competitive landscape.

Conclusion

Verizon's acquisition of Starry is more than a tactical move-it is a strategic masterstroke that accelerates the company's 5G and broadband ambitions. By harnessing Starry's mmWave technology, urban customer base, and cost-efficient deployment model, Verizon is poised to drive EBITDA growth, enhance competitive differentiation, and deliver long-term shareholder value. As the telecom industry evolves, this acquisition underscores Verizon's commitment to innovation and leadership in the digital age.