There has been so much talk about transforming our wireless networks from 4G to 5G, but it is starting to look like Verizon Wireless is at a competitive disadvantage compared to AT&T Mobility and T-Mobile US, according to investment analyst MoffettNathanson. Let’s take a closer look.
They say while competitors were distracted with mergers, Verizon focused on building it’s 5G cellular network technology. That sounds like it would give them an advantage, but it doesn’t seem to be working out that way.
The problem is Verizon focused on the wrong technology compared to competitors and that may leave them at a competitive disadvantage.
Perception as important as reality in race to 5G wireless
Even though both Verizon and AT&T are tied at the top with 4G, when it comes to 5G, there is a growing difference.
Last year AT&T Mobility was the first to start offering 5G services on their network. They are also the first to offer a device to let customers get 5G speeds. They are also the first to offer 5G smartphones getting these speeds. What that means is they are first to market.
Last weekend, I was at the AT&T SHAPE event at Warner Brothers studio in Hollywood and was getting incredibly fast wireless 5G speeds. In fact, everyone with access to the AT&T network was getting the same impressive speeds.
AT&T has done a remarkable job being first to 5G, leaving competitors in the dust. T-Mobile looks like it is coming in a respectable second place.
Verizon is talking about 5G and they have begun to offer fast speeds in certain locations, but the technology they use is better in cities than suburban areas where many customers live and work. Plus, their technology has a harder time inside buildings.
These are real and significant competitive weaknesses.
Today, AT&T leads the 5G wireless race
Today, AT&T is leading the 5G race in both perception and reality. That means marketing as well as network speed and handsets.
Marketing is a key component in the competitive playing field. Having the best technology, the fastest service is so important, but letting the marketplace know you are the leader is just as important.
Over time, we have seen many companies who lead their industry with their offerings, but who have weak marketing and public relations strategies. These companies never lead the marketplace. In fact, they often lose.
They should have won, but too often they lose to competitors with a weaker product but a stronger marketing strategy. That’s why marketing and public relations is as important as reality.
Marketing and PR as important as reality in 5G wireless
In this case, AT&T offer better technology and have a better image in the marketplace. And today, T-Mobile looks like it is coming in second place.
This mistake looks like it could be costly to Verizon from a market share and investor perspective. Based on this, MoffettNathanson says AT&T will likely be able to claim ubiquitous 5G network coverage long before Verizon.
So, in the coming 5G world where perception and marketing are as important as reality, it looks like AT&T and T-Mobile may have a competitive edge over Verizon, at least for the foreseeable future.
