Verizon Communications Inc. (VZ)’s Expansive 4G Rollout Gives It an Edge in Video Streaming Business

Verizon Communications Inc. (NYSE:VZ) however has an edge when stacked against AT&T. It will merely present the infrastructure for cable TV firms. This means that consumers will, for the most part, have to settle scores with content providers; this is of course assuming Verizon’s 4G network doesn’t form a habit of breaking down.

Secondly, cable TV firms want to make a broad push into the Wireless marketplace in order to plug the customer loss that is being caused by mobile video streaming services offered by AT&T, Dish Networks and DirecTV. This suggests that all four cable TV firms in the joint venture with Verizon will exhibit increased aggressiveness going forward.

Verizon could use the combined force of the four firms that have taken on the joint venture to make indirect yet formidable hits at AT&T. If AT&T gets Hulu, there could be some changes. Still, Verizon has a clear edge because of its expansive 4G network.

Sprint Nextel Corporation (NYSE:S), the third largest carrier, is of now still not a threat. Despite advancing fierce competition in other fronts, Sprint Nextel Corporation (NYSE:S) doesn’t have the muscle to compete with AT&T and Verizon Communications Inc. (NYSE:VZ) in video and Cable TV streaming to mobile devices. However, it recently completed the purchase of Clearwire and now owns 100% of the company. It will now have full control and it is clear that it plans to use Clearwire’s spectrum to step up its ongoing 4G network rollout. It has targeted 120 cities for summer.

Conclusion

Verizon’s expansive 4G rollout gives it a strategic edge over its peers when it comes to video and cable TV streaming to mobile devices. Streaming to mobile devices is poised to grow incredibly going forward as more people welcome the idea of accessing the world through their smartphones and tablets. This factor strengthens the long case for Verizon, and suggests that it will be able to sustain growth going forward. Verizon is a Buy.

The article Verizon’s Expansive 4G Rollout Gives It an Edge in Video Streaming Business originally appeared on Fool.com and is written by Lennox Yieke.

Lennox Yieke has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Lennox is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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