Verizon Communications VZ has partnered with KDDI Corporation KDDIY to provide connectivity for newly manufactured BMW Group vehicles in the United States. The agreement strengthens the company’s position in enterprise wireless services while expanding its presence in the connected vehicle market.
Under the agreement, Verizon will provide 5G Standalone and LTE connectivity for new BMW, MINI and other BMW Group vehicles in the United States, supporting the automaker's ConnectedDrive platform. Its nationwide 5G infrastructure will power advanced telematics, remote functions, digital infotainment and app-based services. In collaboration with KDDI's Global Communications Platform, Verizon’s network will ensure secure, reliable data transmission, helping the automaker efficiently manage its vehicle connectivity services.
The collaboration also introduces Verizon's nationwide 5G Standalone offering for connected vehicles. Newly manufactured BMW Group vehicles will be the first to operate on the platform, powered by its 5G core and built-in 3GPP Release 16 industry standards. It further strengthens Verizon’s long-standing relationship with KDDI and expands its automotive portfolio, which includes telematics services for Volkswagen Group brands.
As vehicles become increasingly software-driven, Verizon's advanced wireless network capabilities are expected to enable connected services, real-time communication and next-generation mobility solutions.
How Are Competitors Advancing in the Automotive Industry?
Verizon faces stiff competition from AT&T, Inc. T and T-Mobile, US, Inc. TMUS. AT&T has expanded its automotive business by bringing 5G connectivity to Rivian's upcoming R2 electric vehicle. The company has partnered with Mitsubishi Motors to bring 5G connectivity to the Outlander. AT&T continues to expand its Connected Car platform, helping automakers deliver seamless in-vehicle connectivity, infotainment and digital services through its 5G network.
T-Mobile is strengthening its presence in the automotive sector with 5G and IoT solutions for connected vehicles. The company works with automakers to support telematics, over-the-air software updates, and in-car infotainment through its nationwide 5G network. T-Mobile is advancing its 5G Standalone technology to enable faster and more reliable connectivity for future vehicles.
VZ’s Price Performance, Valuation & Estimates
Verizon’s shares have gained 1.3% over the past year compared with the industry’s 94.8% growth.
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From a valuation standpoint, Verizon trades at a forward price-to-earnings ratio of 8.24, below the industry average of 47.66.
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Earnings estimates for 2026 and 2027 have remained static at $4.96 and $5.25 per share, respectively, over the past 60 days.
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Verizon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).