Capitalizing on C-band — United States Q1 2022 Results Show Room for Improvement

Ookla's first quarter 2022 results for the United States show that there is room for improvement on C-band usage in the country. Median 5G performance for Verizon reached 107.25 Mbps in first quarter 2022, fuelled by its C-band deployment, but T-Mobile maintains the upper hand in the performance stakes, recording 191.12 Mbps. Furthermore, Verizon looking to capitalize on C-band advantage. While still early days for C-band in the US, Verizon will hope that its improved 5G performance will feed through into growth in postpaid net phone additions, following a decline in first quarter 2022. AT&T’s postpaid net phone additions have exceeded expectations, driven by stronger 4G/LTE performance relative to Verizon, coupled with wider 5G coverage and aggressive postpaid pricing. Additionally, rising costs could well shift the competitive dynamic in Verizon’s favor. While the release of further C-band spectrum will shift this dynamic, that won’t happen until the end of 2023. In the meantime rising inflation will play a larger role, forcing operators to either consider raising prices or absorb additional costs. AT&T has already signaled that it favors the former. Verizon could well be a beneficiary.