Verizon's Strategic Move to Dominate the Fixed Wireless Broadband Market via the Acquisition of Starry

Verizon's acquisition of Starry, a fixed wireless broadband provider, marks a pivotal step in its strategy to dominate the evolving connectivity landscape. By integrating Starry's millimeter wave (mmWave) technology and urban market presence, Verizon aims to accelerate its 5G expansion, enhance broadband accessibility, and create long-term shareholder value. This move, expected to close by early 2026 pending FCC approval, according to a GlobeNewswire release, aligns with broader industry trends toward flexible, high-speed connectivity and positions Verizon to compete more effectively with rivals like AT&T and T-Mobile.

Strategic Rationale: Accelerating 5G and FWA Growth

Starry's expertise in mmWave technology-a high-capacity, short-range spectrum band ideal for dense urban environments-complements Verizon's existing 5G infrastructure. According to a report by Verizon's investor relations team, the acquisition will enable the company to double its fixed wireless access (FWA) subscribers to 8–9 million by 2028 and expand broadband availability to 90 million households during the same period, according to the GlobeNewswire release. This is critical for urban markets, where fiber deployment is often cost-prohibitive. Starry's current 100,000 multi-dwelling unit (MDU) customers in cities like New York, Los Angeles, and Boston provide a proven model for scaling FWA services, as the GlobeNewswire release notes.

The integration of Starry's point-to-multipoint (P2MP) mmWave solutions further reduces deployment costs. As noted in a NetworkMatter analysis, Verizon's centralized rooftop radio sites can transmit signals to buildings and distribute them via coaxial cabling, offering a scalable alternative to fiber. This approach not only accelerates service rollout but also strengthens Verizon's ability to deliver gigabit speeds in competitive urban markets.

Financial Impact and Shareholder Value

The company reported $134.8 billion in total operating revenue and $19.8 billion in free cash flow for the year in a Verizon update, with FWA broadband connections growing to over 12.3 million by Q4 2024. The acquisition of Starry is expected to amplify these gains. For instance, Q2 2025 results showed a 5.2% year-over-year revenue increase, driven by wireless equipment sales and service revenue growth, according to a Michael Burry analysis. Analysts project that FWA will become a significant revenue driver, with Verizon raising its full-year 2025 guidance for adjusted EBITDA and free cash flow, as noted in that Michael Burry analysis.

The acquisition also enhances capital efficiency. By leveraging Starry's existing infrastructure and mmWave spectrum, Verizon can reduce the cost per subscriber for FWA expansion. This aligns with CFO Tony Skiadas' emphasis on "cost-effective and rapid deployment" in MDUs, as discussed in an RSi report, a priority for 2025 capital expenditures. Furthermore, the company's debt reduction efforts-free cash flow nearing $20 billion, as the Verizon update states-position it to reinvest in growth initiatives while maintaining an industry-leading dividend yield of 6.9%, according to the Verizon update.

Competitive Positioning and Long-Term Outlook

Verizon's dual focus on mmWave and mid-band C-band spectrum ensures a balanced approach to 5G expansion. While mmWave excels in urban density, C-band provides broader coverage, enabling the company to address diverse customer needs, a point also discussed in the RSi report. This hybrid strategy strengthens Verizon's competitive edge against AT&T and T-Mobile, both of which are investing heavily in 5G.

Moreover, the acquisition complements Verizon's broader broadband strategy, including its pending Frontier acquisition, which will add 9–10 million fiber passings, as noted in the Verizon update. Together, these moves diversify Verizon's connectivity portfolio, ensuring it remains a leader in both wired and wireless markets. Analysts highlight that such strategic coherence is critical for sustaining long-term shareholder value, particularly as demand for high-speed internet continues to outpace traditional broadband infrastructure, according to the GlobeNewswire release.

Challenges and Considerations

Despite the strategic advantages, challenges remain. Regulatory hurdles, such as FCC approval, could delay the acquisition's closure beyond Q1 2026, according to the GlobeNewswire release. Additionally, urban markets are increasingly competitive, with cable providers and fiber startups offering multi-gig speeds. However, Verizon's integration of Starry's mmWave technology and its aggressive FWA expansion plans suggest the company is prepared to mitigate these risks.

Conclusion

Verizon's acquisition of Starry is a calculated, forward-looking move that accelerates its 5G and FWA ambitions while reinforcing its financial and operational strengths. By combining Starry's urban-focused mmWave capabilities with its existing infrastructure, Verizon is poised to capture a larger share of the broadband market, drive revenue growth, and deliver sustainable shareholder value. As the telecommunications landscape evolves, this acquisition underscores Verizon's commitment to innovation and leadership in the digital age.