Verizon’s Sacramento 5G deal is about R&D and politics now, mobile service later

by Steve Blum • , , ,

The City of Sacramento’s 5G deployment deal with Verizon will expand the broadband service choices consumers have by a little bit, and pave the way for faster mobile service in the future.

The deal allows Verizon to use city assets to install what will initially be an experimental 5G network that’ll provide fixed service, presumably into homes and businesses, in competition with AT&T and Comcast. But it’s immediate value is as a development project, with technical and political benefits.

It’s no coincidence that the company chose California’s capital city. Verizon was one of the main backers of senate bill 649, which was approved by legislators but was vetoed by governor Jerry Brown. In his veto message, he said he was looking for “a more balanced solution”, which guarantees it’ll be back next year. SB 649 would have given mobile carriers at-will access to city and county-owned property, such as light poles and traffic signals, at below market rates. During legislative hearings, Verizon offered lawmakers rides around Sacramento in its 5G demo van, and generally made its presence known. The deal reached with Sacramento mayor Darrell Steinberg, a termed-out but formerly high profile state senator, will help keep Verizon top of mind at the capitol.

Leading off with fixed service allows Verizon to test 5G technology while it is still in the development stage. It can deploy a limited amount of network equipment based on the recently finalised initial set of 5G specifications without having to worry about full mobile coverage. Same with customer premise equipment. It’ll be a while before 5G mobile phones are widely available to consumers, but Verizon will have no problem sourcing and installing early and limited versions of gear that’ll support fixed service.

The deal puts Sacramento first in line for true, mobile 5G service, as it launches on a full commercial basis over the next few years. When and where that build out happens will depend to a great degree on both the political and technical results.