Verizon 5G Home Internet Review: Plans, Pricing, Speeds and Availability

If there's anything we can learn about home internet from 2024, it's that wireless internet is quickly becoming a popular alternative to cable, fiber or DSL internet service" target="_self. J.D. Power's 2024 residential internet survey" target="_self highlights the prominence of 5G internet in the fixed wireless internet category and T-Mobile and Verizon stood out as the country's biggest 5G internet providers.
Wireless delivery allows providers like Verizon to expand quickly. It connects homes through a receiver that picks up Verizon's cellular signal and broadcasts it as a Wi-Fi network. Since launching in 2018, Verizon's 5G Home Internet availability has surged. According to its most recent 2024 quarterly report, Verizon now has nearly 4.6 million customers for 5G Home Internet, a 16% increase from the previous year.
With Verizon 5G Home Internet, you can expect straightforward plans and service terms. Your plans come without data caps, contracts or hidden fees. But as always, there's more than what meets the eye, especially with a 5G internet connection.
In very select regions, including parts of Verizon's coverage map, you'll find 5G plans capable of hitting near-gigabit download speeds. That wide availability and high speeds make 5G especially interesting if you live in an area without high-speed cable or fiber internet access. With its straightforward pricing and service terms, there's much to like about what Verizon is selling.
See at Unknown Merchant
It's worth noting that all prices listed on this page reflect available discounts for setting up paperless billing. If you decide not to go with automatic monthly payments, your price will be higher.
Source: CNET analysis of provider data.
Like any fixed wireless provider, the speeds you'll get with 5G home internet are variable. Depending on some factors like network congestion and proximity to a 5G cell tower, internet providers like Verizon can promise speeds "up to" a certain threshold but that's not always a guaranteed speed.
Verizon offers two plans, each offering a different speed potential. The standard plan features max download speeds up to 50 to 300 megabits per second and up to 20Mbps in upload. You can find faster max speeds with the Home Plus plan, which ranges from 85 to 1,000Mbps in download (for select areas) and 50 to 75Mbps in upload.
The typical download speeds for each plan range from 50 to 85Mbps for the 5G Home plan and 85 to 250 for the 5G Home Plus plan. You may see faster typical speeds depending on usage, network congestion or proximity to a 5G cell tower. Verizon reports that 5G Home customers should get HD video streaming (1080p) capabilities while those with 5G Home Plus will experience 4K video streaming.
Even better, Verizon's premium plan features a price lock for up to five years, and unlike many ISPs, equipment rental is already included in your monthly bill.
Fixed wireless internet services don't usually boast the fastest internet connection speeds, but it's no wonder that millions of households turn to 5G home internet instead of the high prices and hassles of big internet providers. Fixed wireless connections are a practical option for rural areas and have decent prices for decent speeds. For context, Verizon's 4G LTE home internet plan offers typical download speeds between 25Mbps to 50Mbps, with uploads in the single digits.
5G is much faster than that, and that's because the standard's millimeter-wave technology (aka mmWave) sends signals at much higher frequencies than LTE. Those higher frequencies can deliver gigabit speeds in the right circumstances, but the trade-off is that they don't travel as far and can struggle with obstructions.
5G accounts for those high-speed range limitations by mixing slower mid- and low-band signals that travel farther for better coverage. On those frequencies, you can expect your 5G speeds to dip to around 300Mbps on midband or down to double-digit LTE levels on low-band. That's why your 5G mileage will vary as far as speeds are concerned; it all comes down to your home's location.
Verizon 5G Home Internet is available in many places, but it's mostly centered on America's largest metro regions, where the development of 5G infrastructure is furthest along. That puts it on a similar (but much speedier) trajectory to fiber, with service primarily focused in America's largest cities, where the population density makes expansion more cost-effective.
That said, deploying new cell towers and upgrading existing ones is generally faster than wiring entire regions for fiber, neighborhood by neighborhood. While availability is still somewhat limited, there's room for hope that 5G might be able to bring faster home internet to underserved parts of the country faster than fiber, cable or other internet types.
Even if Verizon 5G Home Internet is available in your city, there's no guarantee you can get it at your address. Service requires proximity to Verizon's 5G cell towers and a strong, steady signal.
My former CNET colleague, for example, lived near downtown Louisville, Kentucky, where Verizon's 5G Home Internet is an option for some. Verizon didn't offer service at his address, even though he had a cell plan with Verizon and service that was strong enough for his phone to connect over 5G semi-regularly when he was at home.
Want to see whether Verizon 5G Home Internet is available at your household? Check out Verizon's availability link and plug in your address.
Verizon's terms are about as straightforward as you'll find in the home internet market. The monthly rate includes all taxes and fees, and you won't need to pay an additional equipment fee as you will with many providers.
Additionally, there are no service contracts, early termination fees or data caps. That means you can use your connection as much as you like without fearing overage charges for using too much data. On top of that, Verizon 5G Home Internet doesn't come with a bait-and-switch promo rate, so your bill won't arbitrarily jump after 12 months.
All of that is pretty appealing, and it matches what we see from T-Mobile and Starry, the other two names of note offering high-speed wireless home internet plans. Like Verizon, neither enforces contracts, data caps or equipment fees. That seems like a smart strategy for providers hoping to tempt customers into trying something new.
We mentioned T-Mobile and Starry, two other providers currently offering wireless home internet. AT&T was the notable absence here until recently. As of March 2024, AT&T rolled out its 5G home internet AT&T Internet Air, now available across 30 states and almost 100 markets. AT&T Internet Air advertises speeds between 75 to 225Mbps download and 10 to 30Mbps up for a monthly cost of $60, putting it on par with fixed wireless competitors.
As for T-Mobile and Starry, both providers offer appealingly straightforward terms, just as Verizon does, but the prices and speeds are different. For example, consider Verizon 5G Home vs. T-Mobile Home Internet. T-Mobile uses a mix of 5G and 4G LTE signals and offers three speeds (between 72 to 245Mbps and up to 133 to 415Mbps download) for $50 to $70 monthly.
Starry is more impressive, as $45 a month gets you download speeds of up to 300Mbps and upload speeds of 50Mbps. That makes it the only wireless internet provider with speeds at the higher end at a value of just 15 cents per Mbps.
As for each company's coverage map, T-Mobile offers the most availability, with cellular internet service currently available to more than 50 million households across the US. Verizon now offers 5G home internet service to over 40 million households and targets 50 million by 2025. Starry is the smallest provider of the three and is available only in five cities: Boston, Denver, Los Angeles, New York City and Washington, DC.
Remember how we mentioned that 5G home internet providers are trying to lure customers from other ISPs? That's certainly the case with Verizon. The company currently offers many sweeteners for anyone thinking about making the switch.
If your provider charges an early termination fee for ditching it before your contract ends, Verizon will cover that cost when you switch (up to $500). On top of that, new Verizon 5G Home Internet customers get a 30-day satisfaction guarantee: If you're not happy with your service, you can get a full refund.
Both plans include a five-year price guarantee. Verizon 5G Home Plus customers will also score Netflix and Max (with ads) free for one year. Check out CNET's best internet deals for the latest deals from Verizon and other providers.
Are you already a Verizon mobile customer? Those with select 5G phone plans can snag an additional $25 to $35 off their monthly bill when combining their cellphone plan with Verizon 5G Home Internet. That's a nice incentive to give Verizon a try.
Even without that discount, Verizon could offer solid value if your average speeds are high enough. It's difficult to say with such a wide range of possibilities. With Starry, $40 a month for speeds of 200Mbps comes to about 20 cents per Mbps. With T-Mobile, your average cost per Mbps would be approximately 20 cents, assuming you're routinely hitting those maximum speeds of 245Mbps.
As for Verizon, the company says that 5G Home customers should typically expect downloads between 50Mbps and 300Mbps. If your average is 193Mbps, you're paying about 25 cents per Mbps monthly. If you have a strong connection and average download speeds are closer to 300Mbps, that cost per Mbps falls to 17 cents. If the connection is weak and your average is around 85Mbps, the number shoots up to 59 cents. As we said, your mileage may vary.
If you opt for 5G Home Plus, your monthly figures will be slightly different: Verizon's figures come out to 11 cents per Mbps for average speeds at 650Mbps, 26 cents at 300Mbps and 7 cents at 1,000Mbps. Those numbers dip even lower if you apply the Verizon mobile plan discount.
That stacks up pretty well with the top cable providers, who typically charge at least 32 cents per Mbps. Fiber still offers the best value, with most plans typically coming in around 17 cents per Mbps. If there's a choice between fiber and 5G, we'll often lean toward fiber.
On paper, there's not much to criticize. Verizon 5G Home Internet offers some genuinely outstanding terms, and the download speeds could potentially match what you'd expect from cable or fiber. Don't forget that organizations like the American Customer Satisfaction Index and J.D. Power consistently rank Verizon as a top ISP for customer satisfaction. We wish the uploads were faster than 20 to 75Mbps, especially given that Starry promises uploads as high as 250Mbps, but that might also indicate that there's room for Verizon to improve over time as its 5G network expands.
That expansion of 5G infrastructure will be key to bringing availability to more people and strengthening the signal for Verizon's existing customers. If Verizon can continue growing its service map at a fast clip, and its simple, straightforward pricing proves popular, Verizon's 5G Home Internet service might be a game-changer.
Verizon 5G Home Internet is Verizon's fixed wireless internet service on their mixed low and mid-band spectrum network. The wireless internet plan allows customers all the perks of a high-speed, wireless internet connection, depending on your home's location. Max download speeds are 1,000Mbps for Verizon's 5G Home Plus Plan and 300Mbps for 5G Home Internet.
While Verizon Fios is offered only in the northeast, Verizon 5G Home is available nationwide to over 4.2 million customers, per the company's latest quarterly report. Most of its footprint falls around cities and metro areas. To determine if your location qualifies for service, you must use Verizon's Check Availability tool to plug in your address.
On average, Verizon 5G Home is faster than satellite internet service and boasts better download speeds than T-Mobile Home Internet. The biggest caveat is that the precise speed and performance you experience will depend on your location. Generally speaking, Verizon says customers should expect typical download speeds of 50 to 300Mbps and up to 1Gbps in select areas.
One of the biggest differences is that Verizon Fios is a fixed, wired internet service (a 100% fiber-optic internet network), whereas Verizon 5G Home is a fixed wireless internet service. Verizon Fios is only offered in eight states (and Washington, DC), while Verizon 5G Home is available to select addresses nationwide. Finally, Verizon Fios offers either symmetrical or near symmetrical download and upload speeds of 300, 500, 940 and 2,000Mbps (for some areas), while Verizon 5G Home has download speeds that vary between 50 and 300Mbps (up to 1Gbps in some areas) and upload speeds that max out at 75Mbps.
Verizon 5G is a decent option for gaming, but your best bet is to see if you qualify for Verizon Fios, Verizon's fiber-optic internet plan which offers symmetrical download and upload speeds, and a low latency of 12ms according to the latest data from Ookla. (Ookla is owned by the same parent company as CNET, Ziff Davis).
The most important part of a good internet connection for gaming is low latency and quick and reliable speeds. Although Verizon 5G Home Plus boasts speeds up to 1,000Mbps for $80 monthly, that's not consistently guaranteed with a fixed wireless internet provider. Verizon reported 5G latency "less than 30 milliseconds," which is right in the middle of ideal latency speeds but may not stay low consistently.
Yes, Verizon offers unlimited data with its 5G Home Internet plans.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Business Insider

an hour ago

• Business Insider

Morgan Stanley Sticks to Their Hold Rating for T&D Holdings (TDHOF)

Morgan Stanley analyst Atsuro Takemura maintained a Hold rating on T&D Holdings (TDHOF – Research Report) yesterday and set a price target of Yen3,420.00. The company's shares closed last Friday at $21.57. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Takemura is a 2-star analyst with an average return of 7.2% and a 50.00% success rate. T&D Holdings has an analyst consensus of Moderate Buy, with a price target consensus of $28.41. TDHOF market cap is currently $11.37B and has a P/E ratio of 14.30.

CNET

2 hours ago

• CNET

You're Buying Your Internet Wrong: Avoid These Top 10 Mistakes To Save Money

You don't need to be a genius to pick out a good internet plan, but you do have to do a little research. Important information is often buried in the terms of service beneath marketing and industry-speak. I've spent hours reading through internet service provider offerings -- and the customer service reviews about those offerings. It's boring, but the key to getting a decent internet deal -- one that saves you money and comes with enough speed -- is reading the fine print. If you share the sentiments of thousands of Americans who hate their internet service providers, you're probably not thrilled about the prospect of sifting through ISP promotional offers for hours. When the time comes to shop for home internet, it can be tempting to just buy whatever convenient internet plan your friends and neighbors are using and move on with your life. While our internet options are sorely limited depending on where we live, keep in mind that you'll have to live with the internet plan you pick. If it's too slow, you'll be picking up the phone in a few months to call customer service again. If you're getting lured into a plan with hidden fees and promo pricing, you might find your bill doubling after a year or a few months have passed. We rely on the internet for nearly everything these days. With fears of a looming recession and prices rising due to tariffs, it's crucial to find ways to save a little money on such an essential service. Here's my fool-proof method for finding the best internet plan for you. 10 common mistakes made when picking internet plans A little patience and some reading will go a long way with buying an internet plan -- but there are some specific aspects of the plan to look out for. Before you even start shopping, you should have a good idea of how much speed you'll need and your budget. Locating local internet providers ISPs often use flashy advertising or marketing to distract you from the hidden fees or price increases in your internet bill. You don't need a computer science degree to make sense of the internet plan you're paying for. Often, the clues to what your internet service bill will look like and the plan's speed are right in front of you, albeit engulfed in jargon; you just need to know what to look for. Here are the top 10 mistakes I've noticed people making when picking out an internet plan: We'll go over each of these in depth below so that when it comes to finding a good internet service provider, you'll be a pro. 1. Paying for internet speeds you don't need Getty Images Internet is already expensive once you factor in the equipment fees and hidden fees (more on those later). Don't overpay for internet speeds that you just won't use. And don't settle for a low tier only to go crawling back to customer support for an upgrade to a higher tier later. The easiest way to avoid that strife is to take stock of how much internet speed your household is actually using before you begin shopping for a new plan. To start, count the number of gadgets and smart home devices in your home. Smart devices can be sneaky bandwidth hogs, often overlooked when considering internet usage. If you have more than 10 devices online concurrently during a typical day, with internet usage involving more than just browsing the web, a good rule of thumb is to stick to speeds of 500 megabits per second or higher. If you only have one or two devices on during the day and only one or two internet users working remotely, browsing the web, streaming or gaming at a time, you should be safe with 150 to 300Mbps. Since I work remotely and typically only use two devices simultaneously, AT&T Fiber's cheapest 300Mbps tier works just fine for me. If you've experienced excessive lag, buffering and Wi-Fi issues with your current tier, it might be time to size up. Your Wi-Fi setup could be to blame for your internet connectivity issues, so run down the list of possible solutions before upgrading. Advertised vs. actual speeds On that note, keep in mind that what your ISP is advertising as a maximum speed (in my case, 300Mbps), may not be the actual speeds you'll get consistently. Your actual speeds will likely be much slower -- especially if you're relying on Wi-Fi and connecting multiple devices to your network. Even 1,000Mbps tiers may face congestion and slowdowns, as CNET's Trisha Jandoc discovered in her home. When looking for a reliable internet plan, make sure you're taking a holistic look at your speed usage and factoring in slowdowns you may experience depending on the number of devices, the type of internet users in the house and the internet connection type. 2. Not considering the internet connection type Did you know there's more than one type of internet connection? You may have multiple internet connection types at your address; evaluate them all instead of opting for whatever is most convenient. Here's a quick rundown: Fiber internet : Typically considered the gold standard of broadband, fiber internet can deliver symmetrical upload and download speeds -- a feat no other internet connection type can boast of yet. You may be eligible for fiber internet at an address previously only serviceable for cable, so it's worth asking your landlord or calling a fiber provider to see if you can get fiber. : Typically considered the gold standard of broadband, fiber internet can deliver symmetrical upload and download speeds -- a feat no other internet connection type can boast of yet. You may be eligible for fiber internet at an address previously only serviceable for cable, so it's worth asking your landlord or calling a fiber provider to see if you can get fiber. Cable internet : Since fiber internet is much less available than cable internet, you're much more likely to be serviceable for cable instead of fiber. Cable is a decent second-best option, with speeds that can reach multi-gig levels (though upload speeds remain sorely lacking). : Since fiber internet is much less available than cable internet, you're much more likely to be serviceable for cable instead of fiber. Cable is a decent second-best option, with speeds that can reach multi-gig levels (though upload speeds remain sorely lacking). 5G or fixed wireless internet : If you can't get either fiber or cable, consider 5G internet. Wireless internet is becoming increasingly popular, and Verizon 5G and T-Mobile Home Internet have dominated the space in recent years. Verizon's 5G home internet plans claim to offer speeds up to 1,000Mbps and T-Mobile just boosted its speeds and added a new speed tier. : If you can't get either fiber or cable, consider 5G internet. Wireless internet is becoming increasingly popular, and Verizon 5G and T-Mobile Home Internet have dominated the space in recent years. Verizon's 5G home internet plans claim to offer speeds up to 1,000Mbps and T-Mobile just boosted its speeds and added a new speed tier. Satellite internet: With nearly 100% availability, satellite internet is a safe bet for rural communities or those on the go, but it tends to be high in costs and is prone to network congestion. Unless you don't have another option, consider satellite and DSL internet a last resort. 3. Falling for promotional pricing and flashy advertising A recent CNET survey found that 63% of adults are paying more for their internet than they paid last year. Internet providers are profit-motivated first. If you stumble upon a cheap internet plan or deal that seems too good to be true, it probably is. Plus, if you decide to call before you do some research, your customer service representative will probably try to talk you into either upgrading to a faster (more expensive) plan or adding some services you simply don't need. Xfinity's FCC-mandated broadband nutrition label displays the "post-introductory price" after one year of service: the monthly cost jumps from $55 to $89. Screenshot by Cierra Noffke/CNET Pricing traps and promotional bait are popular among ISPs. Always read the fine print -- especially before you call. If you're not careful, you could be roped into a two-year contract, with your bill increasing exponentially in the next year. Cable providers Xfinity, Astound and Spectrum are notorious for price increases that can range from $20 to $30 more after a promotional period. In the case of Xfinity, your bill might double after the first year, unless you sign up for a price-lock. If you closely examine the FCC-mandated broadband nutrition labels, you can see what your monthly bill will look like after the promo period ends. 4. Not reading the fine print to look for contracts, hidden fees or data caps OK, I know it's boring and arguably the worst part about picking a good internet plan, but reading through the terms of service is the best way to figure out what the internet plan you're looking at actually entails. Consult your ISP's broadband nutrition labels for basic facts and read their full terms of service for any follow-up issues you uncover. If you still have outstanding questions, write them down and make sure you ask them when you call. First, make sure you're not signing up for a contract unless you have no other option. Contracts require you to stick with an internet service for the entire term. If you decide your internet plan isn't working for you halfway through, you'll either suffer for the next six months or pay a hefty termination fee. Screenshot of Sparklight's broadband nutrition labels across three plans. Notice how Sparklight describes the data included with each plan as "Unlimited." If you read the fine print, you'll find it actually enforces a soft cap of 5TB. Screenshot/CNET Next, make sure you're checking for data caps. The broadband nutrition label should indicate any data caps, but sometimes, ISPs won't use the broadband labels to clearly state whether they're enforcing a data cap (looking at you, Sparklight), so you'll have to read through the fine print. Also, sometimes ISPs enforce "soft caps" or use "priority data," which means your internet speeds will be throttled once you max out your allotted data. Lastly, are there any hidden fees or junk fees you should worry about? That promotional price of $30 a year for 150Mbps may seem attractive initially, but if your provider leases equipment for an additional $15 and enforces a maintenance fee of $12 monthly, you're looking at $57 monthly. In some cases, you may be able to call and negotiate with your ISP to waive a few of those fees. If you're trying to cut back on initial internet costs, consider installing your internet yourself. 5. Not calculating the cost per Mbps The cost per Mbps is a great way to gauge how good of a deal your internet plan is. Internet prices fluctuate depending on the internet connection type, regional pricing or related market issues. The cost per Mbps is the ratio between the monthly rate (excluding taxes and extra fees) and the advertised speeds -- or the price you're paying for 1Mbps of speed. You can find the cost per Mbps by dividing the monthly rate by the plan's max speed. A good rule of thumb is to stick to a cost per Mbps between 10 and 25 cents or lower -- if you can. Anything lower than 10 cents per Mbps is usually a good deal. I'll caution that the high speeds of fiber internet plans can make using the cost per Mbps approach confusing. For example, AT&T's fastest tier of 5,000Mbps costs $245 a month. That's a hefty price for a lot of speed. The cost per Mbps of that plan comes out to 5 cents, which is pretty good by broadband standards but an unrealistic monthly rate for home internet. If you're thinking of picking a plan with promotional pricing, compare the cost per Mbps for both the introductory and post-introductory rates. Spectrum's $50 for 500Mbps plan comes out to a decent 10 cents per Mbps, but if you stick with that plan for a year, your monthly rate will jump to $80, which is a much higher 16 cents per Mbps. In that case, consider shopping around after your promo period ends. 6. Not comparing internet plans or reading customer reviews I know, I know, I've already asked you to read the terms of service for one ISP, and now I'm asking you to cross-analyze the offerings from multiple ISPs. It's tedious work but the only way to ensure you're getting the best deal is to carefully read and compare the terms of service of all the ISPs in your area. Now that you know what to look for, you can compare the cost per Mbps and terms of service across different ISP plans. If you're one of the lucky few who can choose between more than one or two decent internet providers, you should choose carefully. The terms of service will give you a good sense of what to expect from your internet plan but those words are written from an ISP perspective. You should always take customer reviews with a grain of salt but they're usually an honest portrayal of how those service terms actually play out. For example, if people express consistent confusion about price hikes, consider that a red flag about promotional pricing traps. You can turn to resources like Reddit for city-specific threads about ISPs or the Better Business Bureau for a closer look at what people didn't like about their service. 7. Ignoring tech support and security We usually don't think about our internet until something starts going wrong. Like most internet shoppers, you're probably not planning for connectivity issues and if you pick a good ISP and speed, hopefully, you won't have to deal with those issues. But internet connectivity problems are inevitable, whether it's a problem with your equipment, your Wi-Fi setup, outages your provider is experiencing or more significant problems beyond your control. If you can choose between a good ISP without free tech support and a good ISP with free tech support, opt for the support. You'll never know when you'll have to make a phone call to troubleshoot your connection or your equipment. 8. Not buying your own routerBefore I started writing about home internet, I never considered my router and I couldn't tell you the difference between a modem and a router. But now I know that it can save you money to buy your equipment upfront instead of paying an extra $10 to your ISP every month. Most routers cost $200 or less, which will pay for itself in a little more than a year. Plus, you won't have to worry about racing to return your equipment when your plan ends. There's also a chance your router can offer better performance than the one your ISP offers. CNET's Joe Supan saved nearly $1,000 by buying his own router instead of renting from Xfinity and he noticed improved upload speeds after doing so. Just note that if you buy your own router, you likely won't be eligible for tech assistance from your ISP anymore, and they may even try to blame your internet connectivity issues on your router. Most router manufacturers -- notably TP-Link, Netgear, and Linksys -- offer their own customer service support anyway. 9. Not looking at mobile bundle discounts (or other deals) The best home internet discounts typically come from bundling with your ISP's mobile service. Switching over your mobile service provider can be a hassle if you don't already get service from the same company but you could save as much as $35 each month on internet by doing so. Astound and Mediacom offer some of the best mobile discount opportunities but you may have other options, too. ISPs often try to lure customers with low pricing or other add-ons, and while some deals aren't worth signing up for, others, like T-Mobile's $300 gift card and Frontier Fiber's $30 plan for 500Mbps, are worth a try. 10. Not thinking twice about your router placement Last but not least, after you've done your research and committed to a plan, you'll have to pick a date for installation. Most people trust that the technicians who install their equipment will pick the best place in the house, but that's not always the case. Wi-Fi works best with an optimized setup. If you can place your router/modem in a central spot in the house, closest to where you're working or where your most used TV is located, work with your technician to make that happen. You can always invest in some Wi-Fi extenders or a mesh network if you think the connectivity will be an issue but don't assume your technician knows what's best. After all, this is your internet plan, and you'll be using it every day. FAQs Should I rent or buy my modem or router? It may seem daunting to buy your own router, but the decision could save you money in the long run. Most routers cost around $200, which should pay for itself after a year since many ISPs charge $10 to $15 for equipment rental. If you buy your own router, your ISP won't be able to offer tech support if there's an issue with the equipment, but router manufacturers often come with their own tech support anyway. Plus, newer routers often perform better than the routers ISPs rent out -- CNET broadband writer Joe Supan bought his own router (which saved him nearly $1,000), and he saw improved upload speeds with his cable internet.

Yahoo

5 hours ago

• Yahoo

Lumen Technologies: A Neglected Yet Golden Investment in Infrastructure with Edge Computing Benefits

Introduction Lumen is a special case, a convincing deservice opportunity that is getting out of the crash, trading at bumps. It is led by management quality, strategic transformation, and the undervalued private infrastructure assets. The fiber network, which encompasses a total distance of 450,000 miles, is an abundant and growing digital infrastructure viewed positively in the era of AI and edge computing. The company's strategic plan focuses on the expansion of Lumen's edge computing, where its distributed fiber network makes the company unique for low-latency applications addressing a $12 billion edge computing market. In addition, the company earns revenue with the help of its 5G infrastructure, which is the only service provider in regional markets, and at the same time, it creates a stable income stream. Furthermore, the usage of direct cloud connection and hybrid infrastructure services by enterprise digital transformation creates extra demand for those services. The increased AI infrastructural necessity resonates in the additional value of Lumen's fiber network for data center interconnection and AI workload support. Warning! GuruFocus has detected 7 Warning Signs with LUMN. Growing the Fiber Network Infrastructure The fiber optic network of Lumen is the primary engine of this company generating profit by the global serving of the 450,000 route miles. This fiber, as the primary related technology, depends on it to deliver high speed, low latency services that are primordial for the new digital applications. The company's decisive move in respect of the fiber network, especially in demography and enterprise development, ensures the firm with a great strategic advantage over copper-based legacy networks. Besides, the fiber network can now deliver ultra-reliable, low latency applications in addition to just basic connecting network services. Among the numerous advantages of fiber, only fiber can be used in signal quality, bandwidth capacity, and electromagnetic interference resistance to be avant-garde technologies. It is the preferred medium of backhaul 5G, cloud, and live data analytics applications. Lumen's fiber infrastructure investments also support network slicing capabilities, allowing the company to partition network resources for specific customer requirements or service types. This technological flexibility enables customized service offerings that can command premium pricing while optimizing network utilization across diverse customer segments. Edge Computing Platform Development The development of edge computing platform at Lumen is a technological effort, which changes things dramatically in the field of networking and cloud computing at the same time. Besides, by bringing computing resources to be closer to the end users and data sources, Lumen's edge infrastructure not only cuts the latency but it also improves the application's performance and provides new categories of real-time applications. Lumen's edge computing nodes are strategically located within its fiber network footprint, creating a distributed computing architecture that can support latency-sensitive applications such as autonomous vehicles, industrial IoT, augmented reality, and real-time analytics. This edge-to-cloud continuum provides customers with flexible deployment options that optimize performance and cost characteristics based on specific application requirements. The platform's integration with major cloud providers through direct connectivity and peering arrangements creates hybrid and multi-cloud capabilities that address enterprise requirements for workload portability and vendor diversification. This technological approach enables Lumen to participate in the growing edge computing market while leveraging its existing network infrastructure investments. Software-Defined Networking (SDN) Implementation Lumen's implementation of software-defined networking technologies transforms its traditional network infrastructure into a programmable, agile platform capable of rapid service provisioning and dynamic resource allocation. SDN capabilities enable automated network management, real-time traffic optimization, and on-demand bandwidth allocation that significantly improves operational efficiency and customer experience. The SDN architecture is a platform that supports network function virtualization (NFV). This means Lumen can deploy network services as software applications instead of hardware appliances. This kind of approach is not only entailed by the lower capitalization of expenses, but it is also characterized by the quick service deployment and the service customization for the enterprise customers. Through software-defined networking, network-as-a-service offerings can also be made available, which will enable customers to provision services on a self-service basis while subscribing to a usage-based pricing model. These features are of utmost importance to customers that have changing bandwidth requirements or are trying to avoid fixed infrastructure costs. Conventional Competitors Lumen's most direct rivals are the traditional telecommunications carriers such as Verizon, AT&T, and Comcast, who have not only equivalent network infrastructures but also relationships with enterprise customers. These market players are worthy of competition with their strong financial means, large fiber subscriber networks, and long-term customers, thus triggering a tough competitive environment for Lumen in the field of core connectivities. The most outstanding asset of Verizon is its being the best in wireless network leadership and enterprise mobility solutions together with a strong fiber infrastructure that supports both wireless backhaul and direct enterprise connectivity. AT&T is putting its massive customer base to use since it is providing integrated wireless-wireline options, which means the company has the chance to address the integration broadband communication needs of customers. Comcast's cable infrastructure and business services division compete directly with Lumen in metropolitan markets. Lumen's Response Strategy: Lumen, on the other hand, considers this competition as a possibility to find a difference through technology in the network reach and edge computing capabilities. The company's vast fiber footprint, which is most visible in secondary markets and rural areas, gives geographic coverage advantages overlooked often by bigger firms. Lumen's priority to fast, low-latency connectivity and edge computing services offers such technical differentiation that is not seen in traditional connectivity products. However, Lumen's success in this competitive area is a mixture of good and bad. While the company secures strong positions in specific geographic markets and customer segments, its overall market share is being clobbered by large companies taking advantage of the superior financial resources and wider service portfolios. The company's enterprise customer base cushions the blow to some degree, whereas the pressure from competitors on the pricing and the service mix also persistently challenges its growth potential. Cloud Service Provider Competition Amazon Web Services, Microsoft Azure, and Google Cloud Platform are cloud service providers that have turned on the player because of the infrastructure expansion and direct connectivity services they offer. These super cloud platforms have huge amounts of financial resources and they are able to exploit their worldwide data centers to give networking and cloud services in an integrated way. AWS's Direct Connect, Microsoft's ExpressRoute, and Google's Dedicated Interconnect services are the products that compete directly with Lumen's cloud connectivity offerings. These companies have the capability to package the networking services together with the cloud computing resources so that they can present the integrated solutions which seem to the customer more affordable than the networking and cloud services independently. Lumen's Response Strategy: Lumen's strategy was to position itself as a neutral connectivity provider, meaning that it would not become a competitor of the aforementioned major cloud platforms, but rather work with them instead. The company's multi-cloud connectivity sets apart Lumen's clients from the clouds and therefore by using one network relationship they are able to access multiple cloud providers. This partnership model has been successful to a large extent, as shown in the area of Lumen's interconnectivity of relational with renowned cloud providers. The company's edge computing projects also go side by side with hyperscale cloud services because they concentrate on the applications that take benefits from the distributed computing resources which are available only by low latency. Lumen's Replacement Cost: Physical Infrastructure Layer In any telecommunications network, the foundation is the physical infrastructure, which comprises actual cables, conduits, and pathway rights. For Lumen's fiber network, specifically, you will require the securing of rights-of-way for traversal of hundreds of thousands of miles. This is also the place where the historical side comes to play. To note, the majority of these rights-of-way have been obtained more than a couple of decades, and some even over a century, ago. Their grants were often made through regulatory frameworks, now non-existent, and no cost of reproduction would be today equivalent. Just think of this: if you were to seek building a transcontinental fiber network from the beginning this time around, you'd extremely likely suffer from issues like environmentalist reviews, urban planning restrictions, property acquisition costs, and regulatory hurdles that were not there when a lot of the original pathway infrastructure was laid. The switch expense for the rights and permits themselves would easily top out at tens of billions of dollars. Fiber Infrastructure Alone These days, it costs roughly $10,000 to $30,000 per mile of installation depending on ground and town vs. country building conditions to set up modern optical fiber cables. The figure would be between $4.5 billion to $13.5 billion just for the fiber installation alone if Lumen laid out 450,000 route miles. But, sincerely, it is actually this part of the physical equation that is the lesser one. Network Equipment and Technology The next topic is undoubtedly more of a technology's standpoint but on the flip side could be also finance's. In a certain way, even the replacement cost would be lesser as the new one is much more powerful and efficient. The fiber optic systems of today can overwhelmingly more data even than those systems which have been running for a decade before. A solitary fiber strand is able to handle multitasking terabits of data today that would have been supported by a mega-corporation's infrastructure before. Nonetheless, you'll still have to get thousands of network nodes, switching equipment, data centers, redundancy systems, and more. Some estimates from the industry indicate that this may add a further $20-30 billion to the replacement cost. The Hidden Value: Network Effects and Interconnection In this case, the reasoning becomes more complicated. You should notice that the base telecommunications network profit is not just from its physical components per se-who will connect to other networks and whom will it get customers from, and operational systems which is Lumen's structured network connects to other carriers-internet service providers-and enterprise customers. The network of Lumen connects to the hundreds of participating Internet service providers, enterprise customers, and carriers. Doing so would mean replicating these interconnection agreements and relationships, which could take numerous years and in some cases may be unfeasible because of the conditions that have to be met initially. You can think of it as if you were to try to recreate an entire town's road infrastructure. One could feasibly build these roads (or at least the majority of them), yet it is another challenge altogether to recreate all those businesses, the inhabitants, and the economic activity that goes through those roads and thus, makes them valuable. Assembling a Realistic Estimate The price tag to produce Lumin's core network infrastructure like as a key player would be easily estimated to reach between $50-80 billion if we are to rely on benchmarks of the industry and consider all these points. This number will be divided among the physical infrastructure, equipment, current costs for rights-of-way acquisition, time for customers, and carrier relationship building. But, being practical, the main takeaway from this analysis on the replacement cost is clear; this is the reason the dominant telecommunications companies trade at marked premiums over their underlying asset value. The entry barriers are really huge, affecting not only funds but also practically and regulatorily. Key Risks Revenue Decline and Customer Attrition Risks Lumen has a hard time bearing the pressure of revenue coming from the legacy service division that is competing with other markets. As more customers opt for newer technologies and competitors provide better prices or bundles than traditional voice and data services, they are still afflicted by the secular challenge. This is the situation they are in because of the fact that the fixed network costs are still more or less the same, thus making the dependency on operational leverage harder, while the revenue decreases. The customer's concentration-risk is one more vulnerability, as the company could suffer heavy financial consequences if important corporations were to leave. Contracts with companies usually span for several years, however, contract switching in the period of renewal affects considerably the company's income volatile, which is hard to be compensated by bringing in new clients in fierce competition. The company's consumer sector is burdened by the issue of cord-cutting trends where Lumen Broadband offers tough competition, alongside government regulatory pressures on pricing. Additionally, Lumen's reliance on rural markets also exposes it to the risk of financial troubles stemming from the agricultural and energy sectors which constitute large chunks of its customer base in specific areas. Technological Obsolescence and Infrastructure Risks The fast-moving technology development in telecommunications introduces the risk of infrastructure obsolescence and stranded asset values. Lumen's vast copper network infrastructure represents a huge investment of several billion which could turn into a loss if fiber and wireless technologies keep on evolving. The question then is whether the transfer of the customers under technology is going to be done by Lumen at the right time without increasing service costs and production costs. Network security is always a concern whenever essential infrastructure is being served by enterprises and government customers. Psychological issues like natural disasters, cyber-attacks, equipment glitches, or human imprudence can induce service outages that will, in turn, translate into customer frustration, regulatory fines, and distortion of image. The redundancy of the company's network and their recovery plans are both massive but they still cannot wholly remove the operational risks. Counterproductive cybersecurity actions become a major problem as the whole network system transforms into an attractive target for the state, criminals, and hacktivists. The impacts of possible breaches include loss of customer data, disruption of service delivery, regulatory penalties, and customer mistrust. The hacking arena is becoming more sophisticated both in instrumentality and occurrence, hence the call for constant upgrading of security measures and employment of personnel. Guru While the institutional ownership data reflects the different perspectives of two finance managers about Lumen's future. Palestra Capital Management's biggest shareholder Andrew Immerman holds 3,750,000 shares worth $14.70 million and his holding is 0.59% of the total portfolio. At the same time Palestra has shown its tremendous concern regarding the investment, as it has sold a very considerable 66.42% of the stake it held, that is 7.42 million of shares. Such drastic sell-off move conveys the idea that they are losing hope in Lumen's recovery storyline, although Immerman with the average price per buy of $1.79 was obviously the first one to trust the new narrative. On the other hand, John Overdeck of Two Sigma Advisers holds a smaller but more stable position of 7.79 million shares for $30.54 million. The company marginally raised its stake by 3.81%, buying an additional 286,200 shares pointing to confidence about Lumen's opportunities, albeit moderate. The average cost of around $3.90 indicates their high price purchases, Nevertheless, acquisition suggests the sustained belief in Lumen's investment case by them. Valuation Snapshots of Lumen's data reflect a twisted narrative of the organization, as they capture both the financial obstacles and the potential value-moment. The P/E ratio of -12.41 implies that the company is presently not profitable on a net basis, which presents distasteful conditions on the subject of fundamental valuation. The shortfall clearly comes as a result of the huge debt load of Lumen, depreciation costs of the obsolete infrastructure, and costs associated with the restructuring of the company. Notwithstanding, the PEG ratio of 2.74 shines a more multifaceted light on the matter. Although this seems high compared to normal growth stock benchmarks, it should be seen within the context of Lumen's conversion narrative. The PEG computation indicates the situation where even in times of losses, the market will come to realize revenues that are going to be more than sufficient to cover the costs. The metric that looks ahead incorporates the expectations that Lumen is going to move away from traditional phone services to the more profitable edge computing and digital infrastructure lines. The coupling of negative current income and positive PEG ratio gives a quite interesting investment set up. It literally means that in the short-run Lumen is undergoing cash flow challenges but, the marketshope for a turnaround due to the stabilization in the revenues and the growth of the new businees. It, therefore, provides the investors a turnaround situation where the current financial numbers may not do real justice to the company's actual real value creation that will will be seen when the transformation starts to work and the efficiency goes up. Recommendation From the standpoint of valuation, Lumen is at the graveyard lows trading at an EV/EBITDA multiple of about 4x. This obviously shows the legacy business worries while the transformation business gets ignored. The company is cash rich as it produces around $2.3 billion of free cash flow on an annual basis, which it can use both in debt pay-down and the execution of new projects. Moreover, the company's hefty $35 billion debt load, which limits its financial maneuverability, and the legacy revenue outflow accompany Lumen's investment dilemmas. However, some bright signals come from core business stabilization and better edge computing business prospects. The infrastructure of the enterprise, which is the backbone of the company, coupled with the innovative growth factors, and the discounted valuation creates a situation of risk-reward, the variant of which is only for the patient investor, who is ready to endure the short-term execution hazards. This article first appeared on GuruFocus.