Verizon surpasses 6M FWA subs as precedence shifts to fiber

Whereas the narrative round Verizon’s Q1 outcomes will possible concentrate on stronger-than-expected cellular subscriber numbers, the corporate additionally noticed an enchancment to its total broadband subscriber traits as Frontier Communications entered the fold. Nevertheless, Verizon additionally signaled a shift in its broadband technique because it units out to place extra emphasis on fiber quite than fastened wi-fi entry (FWA).

“Fiber has inherent benefits over FWA, and we’ll prioritize [fiber] the place we’ve got protection,” Verizon CEO Dan Schulman stated Monday on the corporate’s Q1 2026 earnings name. “Subsequently, it’s best to anticipate a mix-shift from the place we have beforehand been.” 

That blend-shift to fiber might be accompanied by a convergence technique to mix residence broadband with cellular. “We now have an enormous cross-sell alternative,” Schulman stated.

That cross-selling will likewise concentrate on the fiber footprint that Verizon lately acquired from Frontier Communications. Quickly after that deal closed on January 20, Verizon introduced that current Frontier fiber prospects may get 4 cellular traces for $20 per thirty days, or a single line for $40 per thirty days, and a brand new iPhone 17 “on us” with every new line, with no trade-in requirement. Verizon additionally provided to repay present telephones (as much as $800) when Frontier fiber subs switched to Verizon cellular.

Associated:Verizon-Frontier deal enters the show-me section

Extra fiber M&A on the best way? 

Schulman stated Verizon may also discover a number of methods to speed up the expansion of its footprint, together with partnerships and “potential acquisitions.” 

Verizon, which additionally struck a deal to amass Eaton Fiber final fall, is on observe to finish 2026 with greater than 32 million fiber passings. Schulman reiterated that Verizon plans to broaden its fiber footprint to 40 million-50 million “over the medium time period,” however didn’t present a extra particular timeframe. 

“There isn’t any query that fiber is a key differentiator … towards rivals that do not have it,” Schulman stated, noting that the attachment charge of Verizon cellular prospects who additionally get broadband from Verizon is hovering at about 55%. 

However Schulman additionally burdened that Verizon will proceed to “drive” its FWA enterprise, a section that is still on observe to have 8 million to 9 million subs by 2028. He famous that Verizon entered 2026 with extra obtainable FWA capability than the place it started in 2025, a possible reference to its ongoing deployment of decrease C-band spectrum. Verizon is anticipated to be among the many bidders for the FCC’s coming public sale of higher C-band spectrum.

Fiber subs speed up (due to Frontier) as FWA subscriber traits sluggish 

Associated:Verizon to spice up MDU biz as Starry deal closes

Verizon added 341,000 whole broadband subscribers within the quarter versus a achieve of 353,000 within the year-ago interval, ending Q1 with 16.76 million.

Verizon added 127,000 fiber subs within the interval in comparison with a year-ago achieve of 45,000, which didn’t embody good points from the Frontier acquisition. Analysts have been anticipating Verizon so as to add about 82,000 fiber subs. With the Frontier acquisition included, Verizon ended the quarter with 10.75 million fiber subs.

With an estimated 28,000 Frontier fiber subs added in January earlier than the deal closed, the “actual” web fiber subscriber addition for Verizon is about 155,000, or roughly unchanged from the 152,000 added a yr earlier, in keeping with MoffettNathanson.

Verizon added 214,000 FWA subs (shopper and enterprise), down from a year-ago achieve of 308,000 and under the 269,000 anticipated by analysts. MoffettNathanson famous that this marked Verizon’s tenth straight quarter of decrease year-over-year web provides within the class.

Verizon, which lately closed its acquisition of Starry, ended the interval with 6 million FWA subs, up 24% year-over-year. Verizon nonetheless expects to have 8 million to 9 million FWA subs by 2028. 

Bullish on AI 

Schulman spent a while unpacking Verizon’s AI technique when an analyst requested for an replace, noting that his objective for Verizon on this space is to change into an “AI-native” firm, quite than “AI-first.” 

He then tried to parse what that really means. He stated Verizon is utilizing AI in a number of methods, together with customer support enhancements, as a software to utilizing “micro-segmentation” that permits the corporate to customise affords on a customer-by-customer foundation, and to enhance community operations. 

Verizon’s AI tech stack, he stated, contains an intelligence layer to format knowledge, a “improvement manufacturing facility” for AI brokers, and a surrounding management airplane to deal with areas similar to safety, security and different related “AI guardrails.” 

Relatively than constructing all of this by itself, Verizon has teamed up with companions similar to Google and Anthropic. 

“We’re going to be considerably full with that whole AI tech stack by July, and we hope to be absolutely carried out by November,” Schulman stated, noting that Verizon raised its recruiting for AI specialists over the past seven months. 

Verizon has seen some AI-driven outcomes already. Schulman stated some early checks of inserting AI voice brokers into its service operations has generated an enchancment in buyer satisfaction scores of 1,285 foundation factors, or about 12.85%. 

Schulman stated using AI has additionally helped Verizon to resolve community points autonomously at a clip of about 85%, and that using AI optimization instruments has additionally resulted in additional than $200 million in power value financial savings. 

“We’re doing issues now at industrial scale [with AI],” Schulman stated. 

On the business facet, Verizon can also be working with hyperscalers and “various” cloud suppliers to combine the corporate’s darkish and lit fiber and 5G belongings to assist their AI infrastructures. Schulman stated extra particulars on that initiative might be shared within the subsequent three to 6 months. Verizon is much from alone on that depend, as Comcast and Constitution Communications even have introduced respective AI edge methods.