Verizon Splits Into 3 Business Groups As It Sets Course For 5G Future
Companies are racing to deploy 5G networks and expanding their product and service portfolios for the upcoming era of high-speed wireless connectivity. In an attempt to stay ahead of the curve, Verizon Communications announced a new operating structure consisting of three "customer-facing areas," those being Consumer, Business, and Verizon Media Group / Oath.
Verizon is essentially breaking into three business segments so that each one can be hyper-focused on their respective market. The underlying goal for all three is to tap into the emerging 5G landscape.
"This new structure reflects a clear strategy that starts with Verizon customers," said CEO Hans Vestberg. "We’re building on our network transformation efforts and the Intelligent Edge architecture to deliver new customer experiences and optimize the growth opportunities we see as leaders in the 5G era. We’re focused on how our technology can benefit customers’ lives and society at large."
Verizon has been relatively aggressive in pulling the market into the 5G era. At the beginning of October, Verizon launched its 5G home service in Houston, Indianapolis, Los Angeles, and Sacramento, and it's been running a "First on 5G" marketing campaign to get the word out. An official 5G standard is still being hammered out, but the takeaway is that 5G is potentially must faster than 4G LTE.
It's not a matter of "if" but "when" the shift will take place on a mass scale. Realistically, widespread adoption of 5G wireless is still probably years away, but companies are putting in the investment and network upgrades, because that is where the market is inevitably headed.
Right now it's too early to tell how Verizon's three-pronged business strategy will work out. The Consumer group will be the one that focuses on the consumer segment (naturally) and will cover both wireless and wired businesses. Verizon's Business group will focus on wireless and wired services in the enterprise sector, and the Media / Oath group "sits at the intersection of media, advertising and technology, helping people access and receive media, entertainment, gaming, news, commerce and other services."
