Verizon is buying Starry, the wireless internet startup that beams broadband through millimeter wave antennas, marking another major telecom consolidation play. The deal gives Verizon access to Starry's urban-focused technology just as the carrier pushes deeper into home internet markets, though it's acquiring a company that filed for bankruptcy in 2023 and serves fewer than 100,000 customers.
Verizon just pulled off a classic telecom rescue mission, scooping up the bankrupt wireless ISP Starry to beef up its urban broadband game. The acquisition announced Wednesday gives the carrier access to millimeter wave technology that could solve one of its biggest headaches: getting high-speed internet into dense apartment buildings without the nightmare of running new fiber.
Starry's story reads like a cautionary tale of ambitious tech meeting harsh economics. The Boston-based startup launched in 2016 with a bold pitch - beam gigabit internet directly into homes using high-frequency mmWave signals, skipping the expensive fiber trenching that traditional ISPs hate. The technology worked, sort of. Starry could deliver impressive speeds, but only with perfect line-of-sight connections that mmWave demands.
The business model couldn't survive reality. Starry laid off half its workforce in 2022 and filed for bankruptcy in 2023, eventually pulling out of Columbus and shrinking to serve just under 100,000 customers across Boston, Denver, Los Angeles, New York City, and Washington DC.
But Verizon sees opportunity in those ashes. "Starry has demonstrated a unique and efficient approach to delivering high-speed internet in complex MDU [multi-dwelling unit] environments," Joe Russo, Verizon's EVP and president of global networks and technology, told reporters. "This architecture is less expensive to build, quicker to deploy, and uniquely addresses the complexities of urban settings where we can leverage our existing fiber and mmWave assets."
The timing makes strategic sense. Verizon is pushing hard into home broadband to compete with cable giants, already offering 5G home internet and building out fiber through acquisitions like the $20 billion Frontier deal that closed in May. Starry's mmWave approach could fill gaps where fiber deployment hits roadblocks, particularly in urban markets where landlords resist infrastructure buildouts.
The deal comes as Verizon undergoes major leadership changes, with PayPal veteran Dan Schulman stepping in as CEO this week. That transition signals Verizon's broader pivot toward digital services and alternative connectivity solutions - exactly the kind of thinking that makes Starry's unconventional approach appealing despite its troubled history.
"Verizon is uniquely positioned to accelerate this expansion because of its significant fiber backbone and extensive holdings of mmWave spectrum," the company said in its press release. That spectrum advantage is key - Verizon spent billions acquiring mmWave licenses that haven't delivered the mobile 5G revolution everyone expected, but could prove more valuable for fixed wireless applications.
The acquisition won't close until 2026, subject to regulatory approval from the FCC. That gives Verizon time to integrate Starry's technology with its existing infrastructure and potentially expand beyond the startup's limited footprint. For an industry struggling to bring broadband competition to urban markets dominated by cable monopolies, the deal represents another bet that wireless alternatives can eventually challenge wired incumbents.
Financial terms weren't disclosed, but given Starry's bankruptcy status and limited customer base, Verizon likely got the technology and talent at a steep discount. The question now is whether the telecom giant can make mmWave broadband work at scale where a nimble startup couldn't.
Verizon's Starry acquisition signals how major telecoms are betting on alternative broadband technologies to crack urban markets. While Starry's mmWave approach couldn't sustain an independent business, combining it with Verizon's spectrum holdings and fiber backbone could create a viable solution for apartment buildings where traditional cable faces no competition. The real test will be whether this technology can scale beyond Starry's limited 100,000-customer base to challenge the entrenched cable industry.
