Verizon Unveils AI Connect As Carrier Aims To Be A ‘Foundational Player’ In AI Ecosystem

Verizon launched its AI strategy and suite of services, AI Connect, during its fourth-quarter 2024 earnings call. The carrier’s top executives also highlighted its fixed wireless, 5G and private networking wins in 2024.


Verizon ripped the sheets off AI Connect, the carrier’s AI strategy and suite of services for enterprises and cloud providers during its fourth-quarter 2024 earnings call Friday morning.

AI Connect is designed to manage resource-intensive AI applications. Through the strategy, Verizon will introduce new tools and use its existing assets, such as the carrier’s network connectivity and edge compute offerings, in new ways to service the AI revolution, whether the AI workloads are across a multi-cloud environment, deployed on a customer’s premise or at the edge of the networks, said Executive Vice President and CEO of the Verizon Business Group Kyle Malady.

“Customers want to control where and when AI workloads are running, and to that we are building new capabilities to give users more insight and control via new tools. Essentially, we are allowing them to program their network resources to optimize their operation as they see fit,” he said. “[For] edge compute, as AI shifts from training to deep deployment, the need for distributed computing will become increasingly important for real-time decisions and predictions.”

Verizon already has the infrastructure to support AI Connect. The carrier’s “thousands” of distributed telecom facilities already have power, space and cooling available, Malady said.

The carrier is seeing increasing demand for AI Connect offers, he said, adding that Verizon currently has a funnel of more than $1 billion when leveraging its existing infrastructure. Google Cloud and Meta are among Verizon’s customers as the hyperscalers have purchased capacity on Verizon’s network with the intent of using it for AI workloads, Malady said.

“Verizon’s ability to be a foundational player in the AI ecosystem is clear,” he said. “At Verizon, we see ourselves as not just participants in this AI-driven future, but as a key player enabling its success. … The bottom line is we are ready to power AI.”

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Wireless Wins

Verizon sustained the tempo it’s seeing in mobility, fixed wireless and 5G in 2024 and that will continue into 2025, Verizon CEO Hans Vestberg said during the carrier’s fourth-quarter and full-year earnings call.

Verizon’s private networks business continues to grow, and the carrier announced significant wins during 2024, including being selected for an IT systems modernization project from Xerox. Verizon also expanded its service from every NFL stadium in the country to individual teams and their training facilities.

Verizon added nearly 1 million postpaid mobile and broadband subscribers in the fourth quarter, which marked the best quarterly result in more than a decade. Verizon’s fourth-quarter 2024 total wireless service revenue of $20 billion was up 3.1 percent year over year. The carrier’s full-year wireless service revenue hit $79.1 billion, which was also up 3.1 percent when compared to 2023’s result.

Verizon in September 2024 revealed plans to acquire Frontier Communications in an all-cash deal valued at $20 billion. The carrier hopes that the deal for Dallas-based Frontier, which is in the backyard of Verizon’s largest rival, AT&T, will help win Verizon more telecommunications market share. The pending deal is expected to close in early 2026.

The company also in 2024 agreed to buy a portion of U.S Cellular’s low- and midband spectrum licenses for $1 billion as the fifth largest mobile network operator in the country sheds parts of its portfolio in preparation for its own deal to be acquired by T-Mobile.

Fourth-Quarter and Full-Year 2024 Results

Total operating revenue for Verizon Business, which includes the company’s Enterprise, Business Markets, and public sector and wholesale businesses, continued to trend downward, slipping 1.5 percent on revenue of $7.50 billion during the fourth quarter compared with $7.62 billion in the year-ago quarter.

Enterprise and public sector continued to decline, falling 4.6 percent during fourth-quarter 2024 to $3.55 billion compared with $3.72 billion a year ago.

Business Markets and other revenue rose 3.6 percent during the fourth quarter to $3.44 billion compared with $3.32 billion in the year-ago period. Wholesale revenue fell 11 percent to $518 million during fourth-quarter 2024 from $582 million one year before.

Verizon Business wireless service revenue in fourth-quarter 2024 was a bright spot at $3.48 billion, an increase of 3.4 percent year over year, which the company attributed to continued strong net additions for mobility and fixed wireless access, as well as pricing actions implemented in recent quarters. Verizon Business reported 142,000 postpaid phone net additions during the quarter.

For the fourth quarter ended Dec. 31, Verizon reported operating revenue of $35.68 billion, a 1.6 percent increase compared with fourth-quarter 2023’s result. For the full 2024 year, Verizon’s operating revenue increased slightly by 0.6 percent.

The carrier’s consolidated net income was $5.11 billion compared with a net loss of $2.57 billion a year ago. Verizon reported diluted earnings per share of $1.18 compared with 64 cents in fourth-quarter 2023. The company’s diluted earnings per share for the full year was $4.14 compared with $2.75 in 2023.

The Basking Ridge, N.J.-based carrier beat Wall Street’s expectations of $35.3 billion in revenue during the fourth quarter of the year.