Verizon looks to sell off its data center business
Verizon plans to sell its data center business in a potential $2.5 billion deal, according to Reuters.
One source who spoke to Reuters said Verizon’s business center assets include 48 data centers, which currently generate earnings of about $275 million. Despite the fact that Verizon acquired Terremark, a data center operator, in 2011 for $1.4 billion, they are now looking to rid themselves of these assets.
According to sources, Verizon was planning to sell its entire enterprise business for $10 billion, a unit that includes the former MCI, which Verizon acquired in January 2006, and also the Terremark data center business.
Other telecom companies, AT&T and CenturyLink are also looking to sell offf their data center businesses. Windstream, a provider of voice and data network communications, sold its data center business to Tierpoint, a data center specialist, for $575 million last October.
Verizon offers cash incentives to change carriers
Verizon is offering up to $650 for customers to switch from one of its rivals: AT&T, Sprint or T-Mobile. This enables customers to pay off either the rest of their wireless contract or the remaining device payments owed to their current carrier.
Anyone who switches their existing number, purchases a new smart phone or trades their old one in can receive up a pre-paid card with up to $650 on it, depending on the value of their phone. The new customer will then pay contract termination fees out-of-pocket.
Verizon will also give customers who switch from other carriers an extra 2GB of data per month for however long they stay with Verizon.
Last year, T-Mobile began marketing and soliciting competitors’ customers by paying off its rivals’ early termination fees. Lots of customers made the switch and now Verizon and others are following suit.
Verizon’s 5G network rolls out in 2017
Verizon Communications is looking to roll out its futuristic 5G network in 2017. The company will begin testing its new network in Boston, San Francisco, and New York City following tests at its headquarters.
Verizon CEO and Chairman Mr. Lowell McAdam noted that the 5G network speeds will be up to 200 times faster than Verizon’s current 5 Mbps average speed.
The average wireless subscriber uses 2.4 GB of data per month, but by 2020 that will jump to 14 GB per month.
“What 5G is, is much more designed for video,” said McAdam. ”We call it more use-case defined. It will be more point-to-point solutions.”
According to analysts, Verizon’s network traffic has been growing by 75% each year and its data traffic from video is expected to grow 55% each year over the next five years.