NEW YORK – Leading the industry with the first commercial application of next-generation broadband services, Verizon Communications Inc. (NYSE, Nasdaq: VZ) today announced it will launch wireless residential broadband services in three to five U.S. markets in 2018.

As a first application of fifth-generation – or 5G — wireless, these services will use radio signals, rather than copper or fiber cables, to provide customers with unprecedented wireless speeds for Internet access. As 5G continues to evolve, customers will benefit from a wide array of services – including broadband, mobile and IoT (Internet of things) — and the necessary bandwidth and low latency for 3D and virtual reality applications.

Verizon’s first commercial launch is planned to be in Sacramento, Calif., in the second half of 2018. Details of that launch, and the announcement of additional markets, will be provided at a later date.

Verizon has successfully trialed 5G residential applications in 11 markets in 2017. The commercial launch is based on customer experience and on Verizon’s confidence in new technology powered by millimeter-wave spectrum.

Verizon estimates the market opportunity for initial 5G residential broadband services to be approximately 30 million households nationwide.

The 5G commercial launch will not have a material impact on Verizon’s consolidated capital expenditures in 2018. The company expects its full-year 2018 capital spending program to be consistent with the past several years.

“This is a landmark announcement for customers and investors who have been waiting for the 5G future to become a reality,” said Hans Vestberg, Verizon president of Global Networks and Chief Technology Officer. “We appreciate our strong ecosystem partners for their passion and technological support in helping us drive forward with 5G industry standards, for both fixed and mobile applications. The targeted initial launches we are announcing today will provide a strong framework for accelerating 5G’s future deployment on the global standards.”

Additional Disclosures

Verizon will hold a meeting with analysts later today, and presentation slides and videos will be available on the company’s Investor Relations website, www.verizon.com/about/investors/.

At the meeting, Verizon will not address the impact of the proposed tax reform legislation since Congress is still working through the legislative process. However, Verizon has long supported tax reform that reduces corporate rates to an internationally competitive level. Implementing a corporate rate of 20 percent, 100 percent expensing and a territorial tax system would allow U.S. companies to be much more competitive in the global economy. The company is hopeful that Congress will pass legislation this year.

Forward-looking statements

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