Verizon Communications VZ has entered into a joint venture with AT&T Inc. T and T-Mobile US, Inc. TMUS to expand wireless coverage and reduce mobile dead zones across the United States. The partnership will use satellite connectivity to help provide mobile service to rural, remote and underserved areas where traditional networks have limited reach.
Through this venture, Verizon will complement its existing network with satellite connectivity, helping users stay connected when traditional mobile service is unavailable. Its focus on direct-to-device services will let compatible devices connect to satellite networks while providing backup connectivity during natural disasters or other network disruptions. The initiative is expected to reduce coverage gaps, improve reliability and provide more satellite service options.
The partnership will help Verizon adopt common technical standards that improve compatibility among devices, operating systems and satellite networks, making it easier to introduce new connectivity services. It could also encourage competition and innovation in satellite services, support more efficient use of licensed spectrum and help the company improve network performance while enhancing the overall service experience.
Existing carrier-satellite agreements will remain in place, allowing Verizon to continue its independent connectivity initiatives alongside the new venture. This will give the company an additional platform to extend coverage, strengthen network reliability and provide greater connectivity across the United States.
How Are Competitors Advancing?
Verizon faces competition from Lumen Technologies, Inc. LUMN and Optimum Communications, Inc. OPTU. Lumen is expanding its fiber network to support growing demand for high-speed connectivity from businesses and data centers. The company is improving its infrastructure to increase capacity and support cloud computing, AI and other data-intensive applications. These investments are helping Lumen improve network performance and provide more reliable connectivity across key markets.
Optimum is strengthening its fiber footprint to bring high-speed broadband to more homes and businesses. The company is advancing its infrastructure to support higher data usage and improve service performance. Optimum is investing in network upgrades to support the growing use of cloud, streaming and other data-intensive services.
VZ’s Price Performance, Valuation & Estimates
Verizon’s shares have gained 10.8% over the past year compared with the industry’s growth of 119.6%.
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From a valuation standpoint, Verizon trades at a forward price-to-earnings ratio of 8.77, significantly below the industry average of 37.6.
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Earnings estimates for 2026 have remained static at $5.03 per share, while the same for 2027 have increased 0.2% to $5.30 over the past 60 days.
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Verizon stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Verizon Communications Inc. (VZ): Free Stock Analysis Report
AT&T Inc. (T): Free Stock Analysis Report
T-Mobile US, Inc. (TMUS): Free Stock Analysis Report
Lumen Technologies, Inc. (LUMN): Free Stock Analysis Report
Optimum Communications, Inc. (OPTU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).