Verizon is blasting AT&T for its 5GE branding strategy - but it could be a savvy move that topples Verizon's dominance
- Verizon is blasting AT&T for displaying a 5GE logo on its phones.
- 5GE stands for 5G Evolution and is not equivalent to the 5G standard.
- The strategy could unseat Verizon's network dominance this year, according to analyst Walter Piecyk.
Verizon is blasting AT&T for marketing its LTE Advanced network by displaying '5GE' logos on its devices.
5GE stands for 5G Evolution and AT&T says this service will offer faster speeds, with actual speeds of 40 megabits per second that could peak at 400 mbps. That's double the speed of its LTE network. Still, it's not the peak of 1.2 gigabits per second that AT&T has said its 5G network will be able to access.
In a note posted online Monday titled "When we say '5G,' we mean 5G," Verizon chief technology officer Kyle Malady urged the industry to avoid such behavior. Verizon also made the same point with full-page ads in The Wall Street Journal, The New York Times, The Washington Post, and USA Today on Tuesday. AT&T isn't mentioned by name, but the Verizon ads are a clear shot at their wireless competitor.
"If network providers, equipment manufacturers, handset makers, app developers and others in the wireless ecosystem engage in behavior designed to purposefully confuse consumers, public officials and the investment community about what 5G really is, we risk alienating the very people we want most to join in developing and harnessing this exciting new technology," Malady wrote in the note.
The indicator on 5GE-capable smart phones lets customers know when they are receiving that enhanced wireless experience, a spokesperson for AT&T told Business Insider.
It's more than just industry altruism that's behind Verizon's call for precision in branding 5G products.
AT&T's marking strategy could unseat Verizon's network dominance this year, BTIG analyst Walter Piecyk wrote on Monday. The media and telco giant is adding 60 MHz of new spectrum to its network this year that could result in noticeable speed and performance improvements for customers, according to Piecyk.
"The broad availability of real 5G' could be years away, providing AT&T with a window of opportunity to surpass Verizon's historical dominance as the wireless network leader in the United States," he wrote.
There seems to be no shortage of mobile competitors in 2019.
Along with AT&T, T-Mobile is also making improvements to its network, and Piecyk predicts it could take share from Verizon in the coming year. Cable is also a relatively new entrant in the space. Both Charter and Comcast have mobile offering for consumers.
"If AT&T can outperform in its wireless business ... we believe this could drive a tightening of AT&T's dividend yield relative to Verizon, particularly if AT&T's success was a result of taking Verizon wireless subscribers," Piecyk wrote.
So far, that share stealing doesn't appear to have occurred.
At an investor conference on Tuesday, Ronan Dunne, head of Verizon Wireless, shared early fourth quarter figures for postpaid additions. Dunne said Verizon added 1.2 million retail postpaid net additions, of which about 650,000 were phone net additions.