Verizon and Google have inked a new $1 billion fiber deal that will provide fast, reliable connectivity to the company’s data centers. Verizon also noted that it will be signing other deals that will be paying off in the near future as well. These are expected to be announced by year-end.
Verizon wanted to get in on the current AI craze that’s going on. And with tech giants like Google building data centers all over the country (and the world, for that matter), this is a great spot for Verizon. As it’s something they already do: laying fiber for these data centers.
Interestingly, Verizon was actually remodeling some old copper central offices into “remote data centers”. Because companies need these data centers up and running right away.
Schulman also rejected the SpaceX MVNO idea
Verizon’s CEO Dan Schulman was also asked about SpaceX potentially getting a deal with Verizon for an MVNO, and that was firmly rejected. Analysts are expecting SpaceX’s direct-to-device service to reach high-density areas and gain market share, which will need an MVNO of some sort, Verizon is not willing to invite new competition into this space. And they aren’t alone.
Verizon already has a pretty massive MVNO deal with Comcast and Charter, but Schulman dismissed rumors that SpaceX could bypass restrictions by partnering with or acquiring those cable giants. Schulman emphasized that there is no structural “backdoor” allowing any third party to access their MVNO network.
Schulman also mentioned that for home internet, suburban density favors faster terrestrial fixed wireless options. He estimated that the US market for satellite internet is just 6 to 8 million homes, limited to strictly remote rural regions where building ground infrastructure is financially unfeasible.
So it looks like it’s a no from Verizon on allowing SpaceX to become an MVNO.
The post Verizon Is Cashing In on the AI Data Center Boom With a New $1 Billion Google Deal appeared first on Android Headlines.
