Verizon Communications Inc. has struck deals with satellite operators to clear additional C-band spectrum ahead of schedule.
The deal comes after Verizon spent $45.45 billion in 2021 to secure licenses in the Federal Communications Commission's auction of spectrum in the 3.7 GHz-3.98 GHz band, a portion of the C-band that is considered essential for 5G networks due to its balance of speed and range.
Though Verizon acquired a total 160 MHz of frequencies in the auction, only 60 MHz came from the A-block that satellite companies such as Eutelsat Communications SA, Intelsat SA, SES SA, Star One and Telesat agreed to clear by December 2021 in exchange for "accelerated relocation payments" totaling $9.7 billion.
The new early clearance agreement between Verizon and satellite operators would allow Verizon to use an additional 60 MHz to 100 MHz of the frequencies for the expansion of its 5G Ultra Wideband service in 2022. Verizon hopes to extend the service to at least 30 more major markets, including Atlanta, Baltimore, Denver, and Washington, D.C.
Verizon had previously said it needed 80 MHz to 120 MHz of contiguous spectrum to be able to fully take advantage of 5G's full potential.
After announcing in January that its 5G Ultra Wideband offering had already covered 100 million people across 1,700 cities, Verizon this month said it aims to reach at least 175 million people by year-end 2022, or one year ahead of the original plan.
"This early spectrum clearance is just the latest development that allows us to bring 5G Ultra Wideband to our customers faster," said Kyle Malady, Verizon executive vice president and president of global network and technology. "We've been able to accelerate deployment because we're driving more efficiency and coverage from the C-band spectrum, leveraging opportunities ... and leveraging our already in place infrastructure."
Verizon's initial launch of its C-band service faced several delays due to opposition from the Federal Aviation Administration, citing potential interference around airports.
While the companies were eventually able to launch C-band service in most of their planned markets Jan. 19, they have delayed turning on a limited number of towers around a number of U.S. airports.
The Ultra Wideband service, which relies on a mix of C-band and high-band, or millimeter-wave, frequencies, usually offers download speeds of 90 Mbps to 170 Mbps and typical upload speeds of 15 Mbps to 30 Mbps.