Verizon is acquiring Starry, the wireless internet provider that beams gigabit speeds through millimeter wave technology, marking another major telecom consolidation play. The deal gives Verizon access to Starry's unique apartment-focused broadband infrastructure as the carrier pushes deeper into urban markets where traditional fiber deployment faces serious cost and complexity challenges.
Verizon just made its second major internet infrastructure play this year, announcing it will acquire the struggling wireless ISP Starry in a move that signals serious intent to dominate urban broadband markets. The deal comes as traditional telecom companies scramble to find cost-effective ways to deliver high-speed internet in dense apartment buildings and condominiums where running fiber cables can be prohibitively expensive.
Starry's technology offers an intriguing alternative to the cable-and-wire approach that's dominated internet infrastructure for decades. Instead of threading fiber through building walls and basements, Starry beams internet service from larger antennas directly into homes using high-speed millimeter wave broadcasts - the same spectrum that powers some 5G networks. The approach promises faster deployment and lower installation costs, though it comes with the significant limitation that connections require clear line-of-sight between transmitter and receiver.
The acquisition represents a classic distressed asset pickup for Verizon. Starry has been bleeding money and customers since launching in Boston back in 2016 with ambitious plans to revolutionize urban internet access. The company laid off half its workforce in 2022 and filed for bankruptcy protection in 2023, eventually pulling out of Columbus, Ohio entirely. Today, Starry serves nearly 100,000 customers across just five markets: Boston, Denver, Los Angeles, New York City, and Washington, DC.
For Verizon, the deal makes strategic sense as part of a broader infrastructure consolidation play. The carrier already operates 5G home internet services and has been rapidly expanding its fiber footprint, including through the massive $20 billion acquisition of Frontier that closed earlier this year. Adding Starry's mmWave technology gives Verizon another tool for reaching customers in complex urban environments where traditional approaches face regulatory hurdles and astronomical deployment costs.
"Starry has demonstrated a unique and efficient approach to delivering high-speed internet in complex MDU environments," Joe Russo, Verizon's EVP and president of global networks and technology, told The Verge. "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 aligns with broader shifts in Verizon's leadership and strategic direction. The company just appointed longtime PayPal CEO Dan Schulman as its new chief executive, replacing Hans Vestberg. Schulman's background in digital payments and consumer technology suggests Verizon may be positioning for more aggressive competition with cable giants like Comcast and Charter in the home broadband market.
The Starry deal also highlights how the mmWave spectrum - once hyped as the backbone of ultra-fast 5G networks - is finding new applications as carriers look beyond mobile services. Verizon holds extensive mmWave spectrum licenses that have proven challenging to monetize for mobile use due to the same line-of-sight limitations that constrain Starry's service. But for fixed wireless in urban apartments where customers can position receivers in windows, those limitations become more manageable.
Regulatory approval appears likely, especially given the FCC's recent sign-off on Verizon's much larger Frontier acquisition. That deal faced scrutiny over Verizon's diversity, equity, and inclusion policies, ultimately requiring the carrier to abandon those programs. The Starry acquisition involves a much smaller, distressed company with limited market presence, reducing potential antitrust concerns.
Verizon's Starry acquisition represents a calculated bet on wireless broadband technology at a time when traditional fiber deployment faces mounting costs and complexity in urban markets. While Starry struggled as an independent company, its mmWave approach could prove valuable when backed by Verizon's spectrum holdings, fiber backbone, and financial resources. The deal underscores how telecom consolidation continues reshaping the broadband landscape, with carriers seeking technological alternatives to expensive infrastructure buildouts. For consumers in dense urban areas, the acquisition could eventually mean more broadband options - if Verizon can solve the line-of-sight challenges that have limited mmWave adoption.
