Verizon changes course: it doesn't want to fall behind and will follow AT&T's lead

Competition in the telecommunications sector in the United States doesn't let up. While some operators seek to keep a firm hold on their territory, others are starting to make moves so they don't fall behind. Now, one of the giants, Verizon, seems determined not to leave any room for its rivals.

Recently, AT&T surprised everyone by closing an important deal with EchoStar. At that time, it acquired part of the spectrum that this company managed under its operator Boost Mobile. This allowed it to strengthen its services and improve coverage for many of its customers.

The move was strategic and well received by the markets. Now, Verizon has decided to take a similar step. The company is already in talks with EchoStar with the intention of buying part of its spectrum.

However, the type of agreement won't be identical to the one AT&T signed. The intention is clear: to strengthen its 5G network and improve its competitive positioning against its main rivals.

Verizon's move is to strengthen its network

Unlike AT&T, which integrated part of that spectrum into its hybrid system with Boost Mobile, Verizon seeks to use that frequency exclusively to strengthen its own services. In other words, Verizon's customers will be the only ones to benefit. Boost users, on the other hand, won't notice any improvement.

This marks an important difference. When AT&T signed its agreement, Boost abandoned its aspirations to become the country's fourth major operator. Instead, it began to operate mainly on AT&T's network.

Although it still has access to other networks, this alliance gives it priority on AT&T's infrastructure. Thanks to this, many customers of both companies have already noticed improvements in coverage.

Verizon, however, has no intention of sharing. The spectrum it intends to buy will go directly to strengthening its 5G network, especially in areas where its coverage needs improvement. It's a move designed to retain current users.

Everyone will benefit

EchoStar has a large amount of spectrum in the United States. For a while, its idea was to use it to compete head-to-head with AT&T, Verizon, and T-Mobile. However, Boost Mobile, its operator, has left that ambition behind.

Instead of fighting for fourth place in the market, it has become a secondary player, supported by larger networks. With these new agreements, such as the one with AT&T and the one Verizon is now exploring, the future of EchoStar's spectrum seems to be moving definitively away from the big initial plans. Even so, selling that resource to major operators will prevent it from being wasted.

Since Verizon's interest became known, EchoStar's shares have risen. The market sees it as a sign that major changes are coming.