AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ) stock gained in the last trading session by 0.07% and 0.19% respectively after hours of trading to close at $29.63 for AT&T and the latter at $54.14.
The stock has been slipping because of the stalling of the rollout of the 5G service that initially was to happen at the end of 2019. The wireless carriers are unlikely to deploy the service this year till 2020 which reinforces claims that Apple won’t get support for iPhones until next year.
Delayed 5G rollout
In a result call on Wednesday, the CEO Hans Vestberg stated that currently, Verizon does not have standard-ready hardware and therefore they are unlikely to have the capability of expanding the home service beyond Sacramento, Houston, Indianapolis, and Los Angeles until the second half of 2020. Similarly, the company does not have a coverage map on their site.
Although AT&T has already launched 5G in various cities such as Atlanta, New Orleans, and Houston among others it has nonetheless not revealed on their exact coverage as well as performance. AT&T has stated that they are unlikely to have nationwide 5G service until next years and in the interim, they have been under criticism for using the “5G E” label for what is considered to be 400-megabit 4G.
Why the delay?
The issue of delays is a result of the equipment partners of the carriers failing to deliver on promises. Samsung and Motorola delayed the standardization of home routers as they have focused more on phones and for AT&T the company may have launched firmware which is capping performance.
As a result of these delays, Apple is also waiting until 2020 n to start shipping of 5G capable iPhones. However, its competitors have already hit the market with compatible modems and networks still in their infancy. Intel who is their preferred modem maker has indicated that they are likely to have the 5G chip ready by next year.
The delay may frustrate 2019 iPhone shoppers who are hoping for future proof phones.