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Verizon Rejects Request to Delay 5G Deployment — Report
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Verizon Rejects Request to Delay 5G Deployment — Report

According to a report published by Reuters, the CEOs of Verizon Communications, Inc. (VZ) and AT&T, Inc. (T) have rejected a request by the U.S. Transportation Department to postpone the launch of 5G wireless service, which is scheduled for January 5, due to aviation safety concerns.

The wireless companies have rejected any limitation on the use of 5G’s C-Band spectrum but have agreed to not deploy 5G near airports for six months.

The companies said the Transportation Department proposal would be “an irresponsible abdication of the operating control required to deploy world-class and globally competitive communications networks.”

The Federal Aviation Administration (FAA) and the aviation industry are concerned that 5G service can interfere with sensitive aircraft electronics like radio altimeters, thus disrupting flights.

Verizon and AT&T said they were using the same exclusion zone plan in France “with slight adaption” reflecting “modest technical differences in how C-band is being deployed.”

In a letter to the Transportation Department, the CEOs said, “The laws of physics are the same in the U.S. and France. If U.S. airlines are permitted to operate flights every day in France, then the same operating conditions should allow them to do so in the U.S.”

In response, officials at the FAA said the 5G spectrum that is used in France is situated away from the spectrum used for radio altimeters. Also, the power levels authorized for 5G in the U.S. are higher than the levels used in France.

Verizon said it would use the same range of spectrum initially as used in France, and the additional spectrum will be used after a couple of years. The larger exclusion zone around U.S. airports is “to make up for the slight difference in power levels between the two nations,” it added.

Wall Street’s Take

Last month, Daiwa analyst Jonathan Kees initiated coverage on Verizon with a Hold rating and a price target of $57 (9.7% upside potential).

Overall, the stock has a Hold consensus rating based on 1 Buy and 5 Holds. The average VZ stock prediction of $58.67 implies nearly 13% upside potential. Shares have lost 7.7% over the past year.

Website Traffic

TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Verizon’s performance.

According to the tool, compared to the previous year, Verizon’s website traffic registered a 31.4% decrease in global visits in November. However, the website traffic has increased 15.3% year-to-date against the same period last year.

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