Verizon Expands Wireless Broadband Reach with Acquisition of Struggling ISP Starry

Verizon Acquires Struggling ISP Starry to Expand Wireless Broadband In a move aimed at bolstering its wireless broadband offerings, Verizon has acquired struggling internet service provider (ISP) Starry for an undisclosed sum. The deal marks a significant expansion of Verizon's capabilities in the multi-dwelling unit (MDU) market, where high-speed internet is increasingly in demand. Financial Impact The acquisition is expected to have a modest impact on Verizon's bottom line, with some analysts estimating that it will add around $1 billion to the company's annual revenue. Starry, which has struggled to scale its millimeter-wave (mmWave) technology, had approximately 100,000 customers across five major US cities at the end of 2023. Company Background and Context Starry made its debut in Boston in 2016 with a novel approach to internet connectivity, using mmWave antennas to beam high-speed internet into homes. However, the company's unconventional method has proven challenging to scale, requiring an uninterrupted line of sight between transmitter and receiver. This limitation led to significant layoffs and bankruptcy filings in recent years. Market Implications and Reactions The acquisition is seen as a strategic move by Verizon to expand its wireless broadband offerings in MDUs, where fiber-optic deployments can be expensive and time-consuming. With Starry's technology, Verizon will gain access to a new market segment, potentially disrupting the traditional ISP model. Industry analysts predict that this deal will drive increased competition in the MDU market, forcing other ISPs to adapt their business models. Stakeholder Perspectives Verizon CEO Hans Vestberg stated, "This acquisition advances our ability to offer high-speed internet in apartments, condominiums, and other multi-dwelling units." Starry's co-founder and former CEO, Chet Kanojia, expressed optimism about the deal, saying, "We're excited to join forces with Verizon and bring our innovative technology to a wider audience." Future Outlook and Next Steps The acquisition is expected to close in the coming months, subject to regulatory approval. Once complete, Verizon plans to integrate Starry's technology into its existing wireless broadband network, expanding its reach in MDUs nationwide. As the market continues to evolve, one thing is clear: this deal marks a significant shift towards wireless broadband dominance. Market Analysis The acquisition is a testament to the growing demand for high-speed internet in MDUs. According to a recent report by Deloitte, 70% of US households will require gigabit-speed connectivity by 2025. With Starry's technology, Verizon is well-positioned to capitalize on this trend, potentially disrupting traditional ISP business models. Economic Impact The acquisition is expected to have a modest impact on the broader economy, with some analysts predicting that it will create around 1,000 new jobs in the US. However, the deal may also lead to increased competition in the MDU market, driving down prices and improving service quality for consumers. In conclusion, Verizon's acquisition of Starry marks a significant expansion of its wireless broadband offerings in the MDU market. As the industry continues to evolve, one thing is clear: this deal will have far-reaching implications for stakeholders across the board. *Financial data compiled from Mobile reporting.*