The past week, Verizon made a bold move: just days after announcing a surprise CEO transition, the company revealed it will acquire Starry — a fixed wireless broadband provider — for an undisclosed sum. With this acquisition, Verizon doubles down on its fixed wireless access (FWA) strategy and deepens its ability to serve multi-dwelling units (MDUs) and dense urban markets.
- Verizon has signed a definitive agreement to buy Starry, pending regulatory approvals, with the transaction expected to close by Q1 2026. (Verizon)
- Financial terms were not disclosed. (Broadband Breakfast)
- Starry currently serves approximately 100,000 MDU customers across five major U.S. metro areas: Boston, New York, Los Angeles, Denver, and Washington, D.C. (Verizon)
- Verizon views Starry’s millimeter-wave (mmWave) technology, especially its beamforming and deployment in complex building environments, as a key differentiator. (Broadband Breakfast)
- Verizon already holds significant mmWave spectrum and a fiber backbone, enabling it to integrate Starry’s assets with its broader network footprint. (Verizon)
The Deal in Brief
Why Starry Matters to Verizon
1. MDU Penetration Is Strategic
MDUs (apartment buildings, condos, etc.) are notoriously costly and complex for wired broadband deployment. Starry’s solution — using mmWave radios and line-of-sight beam paths into building interiors — offers a lighter, more flexible approach. This complements Verizon’s ambition to reach more densely populated areas where cable/fiber builds are costly or constrained.
2. Acceleration of FWA Growth Targets
Verizon has publicly set a goal of doubling its FWA subscriber base, eyeing 8–9 million customers by 2028, with availability for roughly 90 million households. (Verizon) Starry gives them both ready assets and technology to accelerate that path.
3. Layering mmWave with Fiber
Where Verizon has already built fiber or holds strategic transport assets, mmWave can act as a complementary “last leg” delivery, potentially avoiding the cost and disruption of last-mile digging. Starry’s approach is cheaper to build and faster to deploy, especially in vertical, urban settings. (Verizon)
4. Risk Mitigation: Starry’s Legacy & Challenges
Starry has faced turbulence: it filed for Chapter 11 bankruptcy in 2023 after a difficult SPAC rollout, and had earlier scaled back operations in some regions. (BostonGlobe.com) The upside is that Verizon’s deeper pockets, regulatory experience, and scale could stabilize operations and unlock new synergies.
Moreover, mmWave itself has limitations: range is short, signals are sensitive to obstruction, and deployment density is high. Verizon must manage these trade-offs smartly, especially in non-line-of-sight or structurally complex buildings.
5. Market & Competitive Implications
- This move intensifies the broadband competition, particularly in urban markets where incumbents rely on cable or fiber.
- It signals Verizon’s confidence in FWA as more than a temporary “stopgap” — it’s becoming a core broadband play.
- With the recent change in CEO leadership, this acquisition is a clear signal of strategic direction under new management. Analysts suggest the new leadership may focus on cost discipline and growth via strategic M&A. (Broadband Breakfast)
- Regulators will scrutinize this deal, especially in terms of market power, spectrum usage, and impacts on competition.
What 3Rivers Global Observes & Advises
At 3Rivers Global, we see Verizon’s Starry acquisition as emblematic of where connectivity is headed: hybrid architectures combining fiber, mmWave, and intelligent network planning in dense environments. For stakeholders (operators, real estate owners, municipalities), several themes emerge:
- Partnership potential with property owners: Operators will increasingly need to partner with landlords and building management to deploy FWA in MDUs.
- Technology stack integration: Success will require seamless orchestration across fiber, mmWave, edge routing/CPE, and network automation.
- Risk management & operational excellence: The technical fragility of mmWave means operational resilience, redundancy strategies, and maintenance will matter.
- Regulation & spectrum policy: Watch how the FCC treats this deal and adjusts spectrum/antitrust frameworks for FWA expansion.
- Global parallels: In many international markets, especially in dense cities where fiber rollout is hard or delayed, similar mmWave/Multi-antenna hybrid strategies may become more common.
We expect that, post-close, Verizon will begin integrating Starry’s teams, systems, and customers, progressively migrating its MDU footprint to unified FWA service offerings. How quickly and well they execute will be a bellwether for the future of fixed wireless as a serious broadband alternative.
The Next Horizon for Urban Broadband
Verizon’s acquisition of Starry is more than a bolt-on purchase — it’s a directional bet on FWA as a structural part of the broadband landscape, particularly in urban, multi-unit contexts. With Starry’s mmWave assets, Verizon’s fiber backbone, and the imperative to scale, the combined entity could leapfrog over traditional deployment constraints. Success will depend on flawless integration, smart engineering, and regulatory navigation. For operators, real estate stakeholders, and city planners alike, the move signals that wireless broadband is ready to play a starring role in the next generation of connectivity.
Leave a Reply