Verizon said large enterprises are building out private 5G networks for connectivity and edge computing use cases.
The wireless giant disclosed the 5G private network buildout on its fourth quarter earnings call.
Verizon CEO Hans Vestberg said on the company's earnings conference call:
"We continue to see interest from large enterprises running complex logistics and operations like ports, automotive and heavy industries. In November, Norfolk International Terminal contracted us to build a second private 5G network for them. Audi, already one of our partners in smart car development, has contracted us to build a private network for their automotive tech testing environment. And Nucor, one of the country's largest steel companies, has us building private networks for three of its sites with more to come over the next year."
Vestberg added that private 5G networks are a new source of revenue for Verizon's enterprise unit. Verizon has built out 5G private networks for the NFL across stadiums.
"When we build relationships with these large enterprises and they see what our network can do for them, there is always potential for more business," said Vestberg.
What's notable about Verizon's 5G networks is that it can play into edge computing and connectivity to process more AI workloads locally.
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Other takeaways from Verizon's fourth quarter earnings:
- Vestberg touted a partnership with HCLTech on post-sale implementations and customer support for managed network services. He said HCLTech has enhanced "our customer service while saving Verizon money."
- Regarding HCL Vestberg said: "On the cost program, '23 was a big year for us. We did a lot in customer care. We did a lot with the managed services with outsourcing with HCL. We implemented some really large IT systems. We continue to deploy our offshore centers and being even stronger using that as a platform on the basis that we created the Verizon Global Services. I'm really pleased with the platforms, and that means we're on track for the savings we talked about going into '24."
- Total wireless postpaid phone net additions were 449,000 in the fourth quarter.
- Verizon's adjusted fourth quarter earnings were $1.08 a share, on revenue of $35.1 billion, down 0.3% from a year ago. Consolidated net loss in the fourth quarter was $2.6 billion.
- Verizon's business revenue was $7.6 billion, down 3.6% from a year ago. Verizon Business had 292,000 wireless retail postpaid net additions in the fourth quarter.
- Verizon is projecting wireless revenue growth of 2% to 3.5% in 2024.
