Verizon reworks the corporate jigsaw puzzle in the name of 5G

Verizon has unveiled a new corporate structure in an attempt to make a lean, mean, money-making machine at the dawn of the 5G era.

While many of these announcements are usually coupled with some form of job cuts, there doesn’t seem to be one in this case. We’ve been unable to locate the relevant forms on the Securities and Exchanges Commission website, though considering there have been numerous ‘streamlining’ initiatives already announced, it might be a case of fitting the business around the new headcount.

“This new structure reflects a clear strategy that starts with Verizon customers,” said CEO Hans Vestberg. “We’re building on our network transformation efforts and the Intelligent Edge architecture to deliver new customer experiences and optimize the growth opportunities we see as leaders in the 5G era. We’re focused on how our technology can benefit customers’ lives and society at large.”

The new Verizon business will be organized into three business functions (Consumer, business and Media), supported by a network and IT organization, and corporate-wide staff functions. The consumer group will feature both the wireless and the broadband business units, as well as wireless wholesale, led by Ronan Dunne, who is currently President of Verizon Wireless. The business unit will include the wireless and wireline enterprise, small and medium business, and government businesses, as well as wireline wholesale and Verizon Connect, the company’s telematics business, headed up by Tami Erwin, the current EVP of Wireless Operations. The media unit will essentially be the Oath business, with current CEO Guru Gowrappan in charge. Kyle Malady will lead the network and technology department, while there will no changes to the management team on the corporate side.

While job losses have been an unavoidable topic in the telco world over the last couple of years, Verizon made a pretty weighty announcement last month. In an effort to trim the number of lifers and dead-weight in the management layer, Verizon offered 44,000 staff a redundancy package of three weeks of severance pay for every year worked, though it is not entirely clear how many heads the telco want to count rolling out the front door.

As it stands, Verizon currently employs 153,000 people across its various markets, though this figure was as high as 183,400 in 2012. What is worth noting is that it would be unfair to point the finger of destruction at Verizon alone, the trend is clearly visible across an industry rocked by OTTs, and a North American market which has consistently and aggressively sought to undercut rivals.

With many telcos around the world attempting to take advantage of the convergence trend, perhaps this new structure will offer Verizon a leg-up. The launch of its 5G fixed wireless access business certainly gives the business something to talk about, though with both the consumer wireless and broadband units now on the same branch of the family tree, a more consolidated approach on products, tariffs and marketing can be taken. How this impacts the Verizon message remains to be seen, though an aggressive 5G assault is almost guaranteed with new devices promised over the next 12 months.

Research from RepeaterStore suggests only 41% of US consumers were aware 5G is just around the corner, and while the conversation for many telcos is now focusing on the enterprise side, in the US the 5G p*ssing contest appears to be circling the consumer. With such low consumer knowledge of 5G, the telcos will have to do a considerable marketing push to communicate the benefits of 5G.

Will you grow an extra ear from too much Snapchatting?

This week Telecoms.com has 16 year-old Shannon O’Connor joining the team for work experience, and today she looks at the potential for damage of radio frequency radiation on society. Here are her thoughts.

Telecommunications has been evolving significantly in recent years. With an increased pressure for increased connectivity in major cities, many people in the suburbs and poverty stricken areas are at risk of being left behind. However, it can said that the major issue surrounding wifi, and wireless on the whole, progress is the lack of care being taken to support the healthcare of society’s vulnerable.

The US National Toxicology Program tested on lab rats and mice to find what affects radio frequency (RF) energy used in cell phones could have on individuals in the long term. The lab animals were exposed for approximately to 2G and 3G frequencies nine hours a day, starting before birth and continuing for up to two years on large groups of rats and mice.

A draft of the final results was published in February 2018. It showed that an increased risk of ‘malignant schwannomas’ (rare heart tumours) was found in the male rats open to RF radiation. Interestingly, the majority of exposed male rats lived longer than rats who were not open to RF radiation. While these are shocking results, the two conflicting statements call the validity of the research into question. What results like these could mean for people is questionable, but there clearly is an impact on the health of living organisms.

When speaking to Tiago Rodrigues, (General Manager) from the Wireless Broadband Alliance earlier this week, questions began to arise from the innovations suggested by the company in exposing a larger amount of people to wifi radiation signals. He began to explain the larger concept of the company’s work but failed to mention the safety checks carried out.

In response to questions regarding the impact of RF radiation on people, Rodrigues stated the organization had not done any specific research and was not on the charter of the Alliance. On a personal note, he suggested that the industry needed some common level of agreement on assessing the radiation impacts. A concise and collaborative approach needed to be taken as there were no consistency in the way results were actually developed.

It has become apparent through speaking to Rodrigues and taking up further research into this matter that someone needs to take the lead and a conclusive decision needs to be made in standardizing how to measure the health risks attached to radiation from our networking devices.

While there does seem to be some concerns regarding the health impact today, with 5G on the horizon, the number of cell towers is certainly going to increase. In Germany for example, Deutsche Telekom’s CFO Thomas Dannenfeldt has suggested the number of towers could increase to 50,000 from 28,000 today. And this is just DT’s towers, what about the other German companies?

There is an increased need for answers, perhaps something which the World Health Organisation, European Commission or the United Nations could kick start? These conclusive tests could finally provide an explanation as to how this may impact those in the future such as myself.