Good evening, everyone, and thank you for being with us tonight. This is a great day for Verizon. I would go so far as to say it's one of the most significant days in our 20 years history. That's because today, we're announcing our results in the FCC C-Band Spectrum auction, and most importantly, how this new spectrum will amplify our strategy and accelerate our growth. This was a highly successful auction for Verizon, a once-in-a-lifetime opportunity, and I'm thrilled with what we were able to accomplish. This was the largest auction in the history of the industry, and there will not be another one like it in the foreseeable future. Our disciplined strategy and strong balance sheet enable us to be aggressive, and this spectrum investment now sets up Verizon for the next stage of growth and beyond.
We succeeded in more than doubling our existing mid-band spectrum holdings by adding an average of 161 MHz of C-Band nationwide for $52.9 billion, including the clearing cost. Verizon C-Band licenses will cover the entire United States. This was the best spectrum available in this auction, and when combined with our other holding, makes our spectrum position the strongest in the industry. The best spectrum position, combined with our superior network, means Verizon is best positioned to deliver the most powerful 5G experience. Our new C-Band position, combined with our mmWave, means we're the only carrier suited to deploy the fastest, most powerful 5G experience to the most people, or as we will call it, 5G built right. This means we have an unparalleled opportunity to shape and monetize the next chapter of growth built on the 21st century's infrastructure, mobility, broadband, and cloud.
This is not an asset that is going to be deployed at some point in the future, nor is the growth years away. No. This is going to impact us as soon as 2022. We acquired this C-Band spectrum because it fits perfectly with our Network as a Service strategy and accelerates our growth into 2022 and beyond. What C-Band does is significantly enhances our ability to go after and monetize the immediate opportunities we have in 5G mobility, fixed wireless access, both in the home and office, and the mobile edge compute, in particular. Today is about growth. We have all the tools we need in our toolbox to accelerate our growth. We have spoken to you before about getting to GDP plus growth. Well, today, I can be more specific.
Today, I can say that we are going to be growing more than 3% for years to come, along with the strong earnings and cash flow generation. That is our goal, and that is why we acquired C-Band. We started on a journey four years ago when we launched Verizon's Intelligent Edge Network. We continue to expand our Intelligent Edge Network by deploying fiber in cities across the country. This network not only provide us with the cost advantages, it also enable us to deploy technologies fast and move quickly to realize the advantages of 5G before anyone else. This is an important point because when you talk about networks and next-generation technologies, having a first-mover advantage matters.
Being first on 5G Home, 5G mobility, and Verizon 5G Edge has afforded us 17,000 5G sites already deployed, and the ability to capitalize on opportunities quickly, like our partnership with Apple to launch the first-ever 5G iPhone and the first and only Mobile Edge compute offering in the world. Being fast and first is more important than ever before. In the wake of the pandemic, digitalization globally has leapfrogged five to seven years. I'm happy to say Verizon was ready for this acceleration. With the best network, biggest distribution, best brand, and customer base, we are positioned for growth as we recover as a society. Our growth model is based on a clear vision.
We're a multipurpose network company with the best network architected by the best engineers on the planet. This idea of a multipurpose network at scale is a strategic foundation to maximize growth and put us in a position to realize the best return on investment in the fully networked economy. This multipurpose network is built on four generations of award-winning networks that combines the power of wireless broadband and cloud to provide new capabilities and new sources of growth. It will allow us to deliver leading customer propositions like no other company. Mobility expansion, home broadband, Fixed Wireless Access, Mobile Edge Compute. Our leadership is not just talk. Third-party evaluators like J.D. Power and RootMetrics consistently rank us as best in class and fundamentally better than our competition. That is no surprise. We have been leading for the last four generations of wireless connectivity.
We have the engineers, strategy, and consistent investment in place to deliver on network innovation in the coming years, and we're the only network provider that can say that. These core fundamentals propelled a strong 2020 financial performance for our company and allowed us to start 2021 with a strong momentum. Our growth model and these assets will position Verizon to win. Verizon's 5G leadership puts our company in a very powerful growth position. You are well aware of our aggressive deployment of 5G from Ultra Wideband to nationwide and the 5G Edge. The addition of C-Band is nothing short of rocket fuel for our build. Think of the C-Band we have acquired as an accelerator or the extra premium pump at the gas station, and Verizon as the only vehicle with the design, technology, and infrastructure to put it in good use.
Since we began building 5G, we have had a first-mover advantage. We're more than a year ahead in building and selling millimeter wave with our 5G Ultra Wideband service, and still the only company with commercial mobile edge compute. We intend to extend our lead by accelerating our deployment of C-Band. We will increase our capital by $10 billion over the next three years to put this spectrum into use as quickly as possible. The faster, the better. This $10 billion CapEx is on top of our annual ongoing capital investment. We're already moving on this. We have equipment ordered, and we have started work on seven to 8,000 sites for this year. We are ready to go as soon as the first block of spectrum is cleared for use later this year. This is what I mean when I say we're accelerating our growth.
Remember, we are deploying this new asset on our Intelligent Edge Network. It's the most efficient, cost-effective network infrastructure in the industry. This means we can leverage our fiber infrastructure and cost advantage for decades to come. After the three year period, when we finish deploying the additional $10 billion in CapEx, you can expect our ongoing capital intensity to decrease. This highlights not only the growth opportunities from C-Band, but the efficiency of our model and what we can deliver when we combine all of our assets. If you have been following Verizon for a while, you know that we have had a focused strategy since the rollout of Verizon 2.0 in 2019, a strategy that we remain purposely focused on executing today for our four stakeholders, shareholders, customers, employees, and society.
This past year, we launched Citizen Verizon, our responsible business plan for economic, environment, and social advancement. This initiative is core to our business strategy because technology is a vital component to progress. The same is true for our customers. We have known that 5G would transform our relationship with our customer, but we also knew that we needed to transform our company to match that reality. Verizon 2.0 did that by putting responsiveness to the customer at the center of all we do. That is why we reorganized the company into three business units, Consumer, Business, and Media, organized around our customer-facing operations and supported by our Network as a Service strategy. We have seen very good traction from our customers.
You will be hearing from Ronan and Tami, our consumer and business group leaders, who will outline how we'll capitalize on our assets to drive our growth agenda for 2021 and beyond. While you won't hear from Verizon Media leader Guru tonight, I'm super excited about the turnaround and the recent growth in that business that we expect to accelerate. Whatever is through 5G mobility, Fixed Wireless Access or Mobile Edge Compute or any of these other technologies, we're looking at breakthroughs that both solidify and expand the total addressable market that Verizon serves, setting us up for more than 3% growth though. As I presented before, all five vectors of growth are in play, and the business opportunities are amplified with C-Band. By now, you should be familiar with our strategy, which remains unchanged, and how we have been preparing for this moment for some time.
Likewise, our capital allocation priorities remain. First, we invest in the business. As Matt and I have said, if we find assets that enhance our return on investment profile, we will increase the investment like we are with C-band. Second, we will put our board in a position to continue to grow the dividend in the years to come. Thirdly, as Matt will explain, we will pay down debt to deleverage over the next few years. Finally, we will be in a position to consider share buybacks at a later date. Let me summarize this in what you will hear from my executive team. One, our strategy is unchanged. Two, unmatched spectrum and network position. Three, accelerate our five vectors of growth. Four, amplify our business opportunities. Five, more than 3% growth going forward. To get us started, I'm introducing Kyle Malady.
Thanks, Hans. I'm excited to be here tonight to share more about our network and technology plans now that we've secured a game-changing amount of C-Band spectrum. As Hans mentioned, our five vectors of growth have not changed. This new C-Band spectrum will only amplify and accelerate our strategy. We're already preparing and working so that we will be ready to deploy this spectrum as soon as we have access to it. We do not see another auction of this size and scale coming anytime soon. We decided it was very important to use this opportunity to further grow our strong spectrum portfolio. As the leader in the wireless industry, we have consistently deployed a deep portfolio of strong spectrum holdings with the best-in-class technology capabilities.
This same focus will continue to position us for growth for years to come. Our 5G leadership started with the acquisition of millimeter wave spectrum from Straight Path and Nextlink Wireless. This was timed perfectly with the FCC Spectrum Frontiers Order that brought vast amounts of flexible-use millimeter wave bandwidth into the industry. We strengthened our leading millimeter wave position in the 28 GHz auction, allowing us to add millimeter wave depth. We didn't stop there. We've been busy since our last Investor Day, adding over 500 MHz of bandwidth in the 37 to 39 GHz range. We also augmented our existing deployments of unlicensed CBRS spectrum by adding up to 40 MHz of Priority Access Licenses in key markets, increasing our nationwide mid-band average depth by 16 MHz. This bandwidth is ideally suited for our small cell network and has a clear and imminent path to 5G.
You've heard me say before that a 5G network is really a deep fiber network with a bunch of small cells hanging off of it. We're putting a lot of those cells on our own fiber, more than anyone else in the industry. We have an aggressive fiber build program in more than 60 markets outside of our ILEC footprint. About one-third of our 4G and 5G cell sites are serviced by our own fiber today, and we plan to increase that number to more than 50% in the next three years, more than any other in the industry. This gives us both a cost and performance advantage. That brings us to the recent C-band auction. Tonight, we're happy to announce we've won between 140 and 200 MHz of C-band spectrum in every available market. Let's dive into this in a little bit more detail.
We won a minimum of 140 MHz of total bandwidth in the contiguous United States and an average of 161 MHz nationwide. That's bandwidth in every available market, 406 markets in all. Specifically, we secured a consistent 60 MHz of early clearing spectrum in the initial 46 markets, targeted for use by the end of 2021, assuming it is cleared on time. Only one other operator secured spectrum in this early clearing phase. Additionally, we won up to 200 MHz in 158 mostly rural markets, covering nearly 40 million people. This will further enhance our broadband solution portfolio for rural America. The spectrum bands we won are contiguous, which will streamline our ability to deploy the spectrum across the mainland United States. I'm also very happy to report we secured the A1 Block as our anchor in every market furthest from legacy satellite operations.
This will also help us deploy the spectrum quickly and efficiently and avoid retuning in a few years. Bottom line, this represents a 120% increase in spectrum holdings in the sub-6 GHz band. We now have a very competitive position in low and mid-band to go along with our leading level of millimeter wave holdings. One final point about the spectrum we've secured. It's not just about the quantity of spectrum, it's about the quality. The contiguous nature of the spectrum across the mainland U.S. will enhance the user experience far and wide. The quality of the spectrum and the depth of license holdings represent the premier asset in the industry, with the best capacity and performance that our competitors can't match. It's important to understand that not all mid-band spectrum is created equal.
We create a distinct advantage with this auction result. Let me summarize a few key points for you. C-band is a widely used spectrum band throughout the world and will allow for roaming opportunities and economies of scale. The licenses are contiguous, much like 700 MHz was at the dawn of LTE. This is beachfront property. We will license this spectrum outright. We're not leasing it, and our rights extend from coast to coast without gaps. C-band also has better coverage than mid-band spectrum that others are using for 5G. Coverage for C-band is a combination of spectrum characteristics and FCC-defined use rules for these bands. Finally, Verizon's initial C-band build is focused on existing locations. We have the density on our existing LTE network to execute rapidly and benefit from our strong relationships with our tower partners and landlords.
We expect to add C-band radios to 7,000-8,000 cell sites this year. Now let's talk about how and when we intend to put these assets to work. We have a history of efficiently using spectrum assets, and we will continue to flex our engineering muscle as strong stewards of spectrum licenses. We consistently get the most out of what we have. We have the largest customer base in the industry. We're consistently rated best by third-party rating agencies like RootMetrics and J.D. Power, and achieve an industry leadership while using less spectrum than our competitors. In roughly the next 12 months, we intend to have incremental 5G bandwidth available to 100 million POPs in the initial 46 markets, delivering 5G Ultra Wideband performance on our C-band spectrum with peak speeds of one gigabit per second. These great speeds and throughputs are just the beginning.
Over 2022 and 2023, we'll increase the coverage to more than 175 million POPs in the 46 markets. When the remaining C-band is cleared, we'll cover more than 250 million POPs in 2024 and beyond. We've been planning for this for many, many months and are already working with our equipment and infrastructure partners to make this the fastest deployment of new spectrum ever. Before I talk about acceleration of our strategy, let me quickly touch on a continued deployment of millimeter wave. We will continue to expand our millimeter wave footprint and deliver game-changing experiences and capacity for the densest parts of our network. We ended last year with more than 17,000 millimeter wave sites and expect to build another 14,000 in 2021. This will bring our total to over 30,000 sites online by the end of this year. We'll keep building after that.
In terms of expectations and depending on COVID, we feel confident that at least 5% of our overall network usage will be on millimeter wave by the end of the year. This could increase as much to 10%, depending on how quickly we emerge from the pandemic and return to stadiums and venues. Over the next few years, we see a path for as much as 50% of our urban usage moving to millimeter wave in some of our densest markets, and our build plans target this footprint. One of the great use cases we can unlock with millimeter wave in this additional C-Band spectrum is Fixed Wireless Access. We're continuing to aggressively build on our network to support broadband use cases.
We expect to cover nearly 15 million homes by the end of this year and expect to reach 30 million homes by the end of 2023 using both 4G and 5G. With Fixed Wireless Access across all of our spectrum holdings and our industry-leading Fios service, we can serve mobile home and business broadband use cases across the board. Ronan will talk about the go-to-market plan for our consumer broadband strategy, and Tami will discuss the business opportunities in a few moments. Another way our technology platform perfectly complements our Ultra Wideband network is Mobile Edge Computing. Last year, we were the first in the world to deploy a public MEC solution with AWS. We deployed 10 zones in 2020 and will deploy an additional 10 this year. We anticipate that C-Band will accelerate MEC adoption.
In addition, we will start private MEC deployments in partnership with Microsoft that feature 5G in-building solutions. You will hear more from Tami in our industry-leading public and private edge compute solutions. Before I close out, I want to leave you with two final thoughts. First, we have the network design and spectrum assets not only to be the best-performing network, but the most efficient from a cost perspective. Second, we will deploy our C-band and millimeter wave assets as quickly as possible to accelerate growth and capture market opportunities. I think you could tell why we're excited and confident in our position. I now turn it over to Ronan to talk about how we're using these new and existing network assets to serve our customers.
Thank you, Kyle. I want to start by reminding all of you of the winning strategy that we've been building and executing over the past few years. It's all based around enhancing and expanding customer experience by leveraging our core platform capabilities. By doing this, we reinforce the premium position, profitability, and growth prospects of our core Verizon branded business while leveraging our scale and capability across a wider range of other consumer growth opportunities. This, coupled with our investment in networking capabilities, creates the underpinning for our five vectors of growth. First is our great network. Now, you've all experienced it, and you've just heard Kyle and Hans describe how the best is getting even better with exciting network developments.
Founded on the best and most reliable 4G network with the continued extension of Ultra Wideband capabilities nationwide, now including C-Band, we can power incredible, immersive experiences for all our customers. Network as a Service is the foundation of our growth platform. The second is distribution. Today, we have over 100 million mobile and broadband consumer connections, and with TracFone, pending regulatory approvals, we will have over 120 million. We have both physical and digital assets that allow carefully selected brands to reach our entire base. This allows us to develop best-in-class partnerships across a range of verticals to deliver high-quality, curated experiences for our customers that enhance our differentiated value proposition, quality, choice, and experience. Finally, it's billing and service. We have the relationships and platforms that enable companies pivoting to direct-to-consumer models to engage high-quality, loyal consumers. This is a powerful value proposition for them and us.
The more we leverage these capabilities, the more efficient we become. We build once and sell multiple times. It allows us to power multiple market segments that address diverse customer needs, premium and value direct, and via wholesale and partners. Starting with our core Verizon brand, we can expand our premium value proposition to new verticals, leveraging partnerships and 5G-enabled capabilities such as gaming and AR, expand to new digital audiences through Visible, to the underserved value segment through our impending acquisition of TracFone, and expand reach and offering in the growing wholesale market. We will continue to bring on partners that enhance value for our customers and extend our reach to consumers generally. Let's talk about how this winning strategy translates into the key vectors of growth for the consumer group. Let's start with 5G adoption.
With the work we've been doing in the global 5G ecosystem on devices, equipment, capabilities such as Edge Compute, we were already convinced that 5G adoption would be faster than every other G. With what we know today and the ability to deliver 5G Ultra Wideband nationwide even faster, we're more convinced than ever that we will deliver the fastest mobility adoption curve and an expanded opportunity for 5G Home broadband on a nationwide scale, accelerated and amplified by C-Band. It spurs adoption of 5G handsets to access the enhanced coverage and capability, and expands the addressable market for 5G Home, dovetailing seamlessly with our millimeter wave to deliver depth of capacity and capability on a nationwide basis, and unparalleled performance in dense traffic environments. C-Band will enhance our Ultra Wideband value proposition and will be included in all our premium unlimited plans. The second part is compatible handsets and CPE.
Many of our customers already have C-band compatible devices in their hands today. The Samsung S21 series and Google Pixel 5 are all C-band compatible. There's more. Every device in Apple's U.S. iPhone 12 lineup is C-band compatible. Overall, we have 10 million 5G Ultra Wideband devices in the hands of customers on our network today. Of those, some 70% are already C-band compatible. Going forward, all new 5G handsets we sell to post-paid customers will be C-band compatible. Customers are migrating to 5G in earnest. As of year-end 2020, some 9% of our consumer post-paid phone base were on a 5G device. With the exciting device lineup we have in store and the superior 5G experience that we deliver, we expect to reach 50% some 18 months ahead of the GSMA forecast, and end 2023 ahead of even the more ambitious Ericsson Mobility Report forecast.
As I've said, we are bullish on Home. As Kyle mentioned, we're now able to accelerate our ambition. That is why we're investing in building the ecosystem it takes to win in this market. Today, I'd like to unveil our new home CPE devices, which will all be available in 2021. C-Band compatible, these devices have sleek industrial design and will power our Fixed Wireless Access home internet offerings. They're all self-setup featuring AR guidance, simple instruction videos, and in-app chat and call support. We have the Verizon 5G Internet Gateway, Verizon Internet Gateway, and the Verizon Smart Display. This is amazing new hardware that delivers incredible speeds and is super easy for customers to install. The next vector of growth is network monetization. Network monetization starts with the continued growth of our base, both post-paid and prepaid.
We anticipate a significant second half rebound in volumes from 2020 levels. It's about increasing the ARPA of our customer base as they step up to unlimited and premium unlimited. Lastly, we see wholesale as a key element of our strategy and one where we continue to expand our offering through new partners and new services. We have a strong relationship with our wholesale partners, which we continue to extend and deepen. Now we compete directly with our wholesale partners in the mobile marketplace. Delivery of a nationwide home broadband offering will further reinforce our capability to bundle competitive offerings. When our wholesale partners win customers from across all carriers, that drives further profitable utilization of our network and improves network economics for our Verizon customers.
We see healthy growth from our existing partners and a robust pipeline of new partner opportunities. The next vector is customer differentiation. This is the core of our premium strategy, unlocking value in our base. We've seen tremendous step-ups from our customers, from metered to unlimited, and unlimited to premium unlimited, as we discussed back in November. We continue to see this with over 20% of our postpaid accounts ending the year on a premium unlimited plan. We expect this number to grow to over 30% this year and circa 50% by 2023. We offer customers many reasons to step up to a premium unlimited plan, centered around our core value proposition, Mix and Match. First and foremost is access to the power of our 5G Ultra Wideband network. With C-Band included, we think step-ups to premium will only accelerate.
There are a number of other value inclusions, where we bring best-in-class partners like Disney and Discovery, and others in the future, to our customers as part of our Mix and Match reward strategy. Not just better on Verizon, but also better with Verizon. This is only one part of the story. We have proven our credibility and earned the trust of our customers by providing them with products and services beyond connectivity. If you look at our ARPA, which we expect to continue to grow at a 2% + compound annual rate, it is driven by both the increasing premium mix and connected device adoption, as well as increasing penetration of existing products.
We expect product revenue as a category to grow at double digits for each year of the next three years, as we expand our offering across mobility and home, and our penetration of the base. The final vector of growth is new markets. Visible has just been named one of Adweek's Challenger Brands of the Year. Recent product announcements, including 5G, Party Pay enhancements, eSIM, and an innovative referral program, are already showing traction in the marketplace and spurring growth. TracFone, subject to regulatory approvals, provides us with a superb opportunity to participate directly and deliver growth in the value market through enhanced focus and by bringing affordable access and new products and innovation to customers. Our greatest new market opportunity is home. Let's look at why this is a game-changer. We are bullish on our ability to capture the large and increasing total addressable market.
Across the technologies available to us, we see a nationwide home broadband opportunity. As consumers increasingly look to cord cut, seek higher speed, more reliable home broadband solutions, we see the ability to leverage our core Mix and Match strategy to provide differentiated content and connectivity choices. We are already disrupting the home broadband market, delivering customers choice in their internet provider. As we roll out C-Band, we will accelerate and amplify. By the end of 2021, we will have between 1 million and 2 million millimeter wave 5G Home open for sale, and some 15 million in total with the arrival of the first tranche of C-Band. By the end of 2023, this will have risen to more than 30 million households we can serve. Today, over 6 million customers have Verizon home internet through our Fios product, and this continues to grow.
Through mobility, we are already in 33 million customers' homes, which represents a unique cross-sell and bundling opportunity. We are positioned to serve these customers for all their connectivity needs. We see the opportunity over time to not just take home broadband market share, but convert the majority of those households to Verizon mobile and home customers, as home broadband becomes as simple and reliable as another line on your Verizon wireless account. That's just the start. Once we do that, it provides us the platform to drive a home subscription model that we can deliver through Verizon and other partner-branded products and services.
In closing, to capture our excitement, we are very well positioned with our strategy and our assets, and our strategic momentum is accelerating. We have a multi-vector growth plan with tremendous headroom in each vector. C-Band means that our growth strategy is fully in play. I'm bullish for where we're taking the consumer business. Superior, sustainable growth built on great customer outcomes, winning in connectivity and winning beyond connectivity, making Verizon the partner of choice. Now, let me turn over the floor to Tami.
Thanks, Ronan. Good evening. When we formed Verizon Business in 2019, we set out with a clear intention to become the partner of choice for our customers' digital transformation journey. Two years later, our multipurpose network strategy, with the unmatched benefit of 5G Ultra Wideband capability, remains strong. If the past year has shown us anything, it's that the network matters now more than ever. For Verizon Business, the cornerstone of our Network as a Service approach is an end-to-end offering that delivers agility and efficiency for customers as they accelerate their digital transformation. We've made great progress introducing a new go-to-market model to capture growth. Most importantly, we've been there for our customers as they reacted and responded to COVID, and now as they reimagine their future.
The foundation for our growth has been the ability to effectively build, sell, and scale a product and platforms portfolio for today and tomorrow, including three core revenue drivers. First, let me talk about wireless growth. Since the start of Verizon 2.0, we have continuously grown wireless subscribers and are the leader in every segment we serve. We expect to continue in that position in 2021 and beyond. Second, we've seen strong Unlimited adoption. Since we launched late last year, 2/3 of small business customers who choose a new Unlimited plan are choosing Premium Unlimited, which includes 5G Ultra Wideband and new value adds such as Business Mobile Secure. Third, we're winning in the network, providing next-gen fiber and software-defined networking solutions. We're winning beyond connectivity, scaling our One Talk, BlueJeans, security, and other business solutions.
As more and more customers prepare to transition to 5G, we've begun to see the benefit of industrial IoT investments, adding 10 million incremental machine-to-machine LTE connected devices last year alone and delivering double-digit connections and revenue growth. This year, we expect to see continued growth as we scale our IoT practice, installing devices that will be supported as customers evolve from our 4G to 5G network. Core to our product suite is Verizon's differentiated 5G Ultra Wideband. I'm proud to say that today, we are the only B2B player live and in market with the coverage of 5G nationwide and the capacity and capabilities of 5G UWB, enabling 5G mobility, 5G Fixed Wireless Access, and 5G Edge, the first commercialized public mobile edge compute platform. 5G is becoming available in more and more places, we're seeing this demand for 5G technology grow.
Customers like Corning, GM, and Honeywell are working with us to transform their R&D labs, factory floors, and distribution centers and headquarters, respectively. They are looking to provide unique connectivity for their employees to enable data-intensive applications and benefit from solutions like computer vision, augmented reality, and machine learning, all built to increase productivity, provide enhanced security, and reduce latency in ways that Wi-Fi will never be able to enable. The demand is there for 5G and MEC. We are rapidly growing the ecosystem to scale, further commercialize, and extend our competitive advantage. Now, let's turn our attention to C-Band, where we unlock new monetization paths that will increase 5G adoption, grow share, and create new markets. First, the addition of C-Band will enhance our competitive position for mobility, bringing faster speeds to more users, backed by the reliability of Verizon's network expertise.
Next, C-Band will unlock the ability for us to provide business customers with an alternative to their current broadband. Today, we serve a limited number of businesses with a fixed broadband solution, primarily in our Fios footprint. 5G Business Internet changes all of that. With the expansion of Fixed Wireless Access, we will give customers more broadband choices, including many businesses we currently have a strong wireless relationship with. By using a high-power fixed 5G receiver, we will bring business customers the broadband speeds they need with the reliability from Verizon they have come to expect. We've just launched 5G Business Internet in three markets on millimeter wave, with plans to bring it to more than 20 markets before the end of the year.
C-Band will accelerate the market size we can serve. In total, we believe 5G Business Internet, with all of our broadband technologies, will more than double our present-day broadband addressable opportunity, which is incremental to the consumer opportunity you saw earlier. Finally, we believe the addition of C-Band will accelerate next gen B2B applications, including expanding the reach and adoption of public Mobile Edge Compute. This is especially important as it extends our ability to tap into more and more use cases where mobility becomes crucial.
Overall, we have a strong first-mover advantage to build a nationwide Mobile Edge Compute platform and be both a market leader and a market maker. This is not just an idea, it's happening. Companies in every industry are finding exciting ways to bring 5G and 5G Edge to life, leveraging the full capabilities of 5G from throughput and ultra-low latency to sensor densification and rock-solid reliability, not only for B2B but also B2B2C. Let's take a look.
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Those are just a few examples of what is happening right now. The market demand is strong. By the end of 2022, we estimate the edge compute total addressable market in the U.S. will reach $1 billion. By 2025, we see rapid adoption of edge compute, creating a $10 billion addressable marketplace. To scale this opportunity, we've stood up two distinct models. First, the public model. Last year, we partnered with AWS Wavelength, the biggest cloud provider on the planet, and immediately connected their 1 million plus developer community to our nearly 170 million end devices across Verizon's 4G and 5G nationwide networks at the edge. Overnight, we unlocked an innovation sandbox for latency sensitive and mobile apps and accelerated commercialization of the MEC model.
Developers today are building use cases spanning a wide array of commercial applications, from healthcare, AI analytics at the edge, to sports and entertainment, education, and more, all through an easy on-ramp in the AWS portal, where they can move their workloads to the edge of our network, automatically triggering a recurring revenue share for Verizon and AWS. We're not stopping there. We've also announced a collaboration with Microsoft to deliver a private MEC model for customers that want a completely dedicated edge compute infrastructure, enabling ultra-low latency at the premise, higher levels of security, and deeper customization. The private model is a premium service that generates revenue for us, similar to a solution sale, and increases long-term customer retention. This fully integrated Verizon solution creates value for our customers and benefits us in three ways.
First, with Verizon 5G Edge, where we combine the power of Microsoft Azure and edge capabilities with 5G on the customer premise. Second, with Verizon connectivity from the additional private network component, which is forecast to be a $10 billion global marketplace by 2025. Third, with co-developed solutions enabling real-time applications like intelligent logistics, predictive maintenance, robotics, and factory automation on the 5G Edge platform. We have a direct line of sight to the applications and solutions marketplace, another $12 billion addressable opportunity by 2025 that we will commercialize through our growing partner ecosystem. We're not wasting any time. We've already started developing enterprise solutions with IBM, Cisco, Deloitte, and SAP across many industry verticals, including manufacturing, retail, distribution, and logistics. Verizon Business is well positioned to capture significant edge compute share through our existing assets.
We are in market today with leading cloud providers and expect to continue growing our roster of market-making partnerships. We believe that the demand for MEC services unlocks a total market that is forecast to exceed $30 billion by 2025, revenue we will share with our partners. With C-band, we expect a wide and fast path to monetization. As I wrap up tonight, it's important to note that we will continue to leverage our multipurpose network strategy with the added benefit of C-band assets to increase our market-leading position, fortify and extend our competitive advantage, and grow our customer base and revenue. We're two years into a three-year business transformation program designed to take costs out, deliver revenue, manage margins, and stem wireline headwinds, all while delivering the service excellence we envisioned when we launched 2.0.
Thanks to the hard work of the team, we've begun to recognize significant EBITDA contributions. We anticipate segment margins to remain above 25% and expand as we scale 5G opportunities. There is strong momentum in our business, and our investments will help deliver profitable, sustainable growth well into the future. We have never been in a better position to accelerate 5G for business, to fuel our customers' business communications, lead their digital transformation, and be their partner of choice. I'll now turn it over to our CFO, Matt Ellis.
Thanks, Tami. Good evening, everyone. The C-band auction is a key milestone for Verizon that enables many significant future opportunities and is a part of the journey that we have been on for the past few years. Our Network as a Service strategy is our foundation when considering significant investments. We've leveraged that framework, investing in key strategic areas such as spectrum, network assets, partnerships, and disciplined M&A to position us for this next technology era. In spectrum, we've been building our portfolio to support our 5G plans for several years, beginning with our Straight Path purchase in addition to FCC auctions to build the strongest millimeter wave spectrum position in the industry. The C-band acquisition is a crowning moment of activity across our mid-band portfolio from both the primary and secondary markets, including last year's CBRS auction.
The result is a combination of low, mid, and millimeter wave bands that gives Verizon the best spectrum holding in the market. Another key area has been our investment in network assets. Fiber serves as the critical backbone to our 5G deployment and provides us with a unique competitive advantage. Our commitments with our vendor partners such as Samsung, Nokia, Ericsson, and Corning represent key long-term strategic agreements to drive innovation in 5G. In addition to network investments, we've leveraged partnerships and M&A to bring more value to our customers and better complement our competitive position in areas where we were previously under-penetrated to support the Network as a Service strategy. Years of a very deliberate and disciplined approach have positioned us to support all five vectors of growth.
Let me recap some of the key information you heard from my colleagues with milestones that will lay out the foundation and path for our accelerated revenue growth. This begins with our build phase. Kyle mentioned all the work his team will be doing within our existing tower footprint between now and when we receive the 60 MHz in the initial 46 markets. We intend to cover roughly 100 million POPs with C-band within the next 12 months. As a result of our pre-planning with our vendors around C-band compatible phones, including the iPhone 12, we expect more than 20% of our phone base will have such devices at the time of launch, allowing those customers to experience the benefits in just a short period of time.
As you've heard from Ronan and Tami, C-Band will be a key accelerator for our Fixed Wireless Access home and office products, allowing us to expand Fixed Wireless Access households covered to 15 million homes in the next 12 months, including one to two million through millimeter wave. That 15 million plus millions of more businesses will enable us to be a true disruptor in the broadband space outside of our Fios footprint. On millimeter wave, as we continue to build with another 14,000 sites this year, we expect more than 5% of overall usage will be on millimeter wave by the end of 2021, offering the ultimate experience of 5G to more and more of our customers. 2022 and 2023 will be a period to scale our C-Band 5G deployments.
During this period, as we cross over 175 million POPs covered and penetrate 55% of our phone base with 5G capable devices and cover 30 million households with Fixed Wireless Access, you'll see our revenue growth starting to scale as well. Mobility revenue will benefit from customer growth in consumer and business, in addition to the accelerated 5G penetration that you heard from Ronan, which will drive the uptick in unlimited and premium unlimited. Fixed Wireless Access is becoming a $1 billion annual business and Verizon 5G Edge revenues begin to scale. In 2024 and beyond, as the second phase of C-Band spectrum goes into service, we'll pass 250 million POPs delivering nationwide coverage. We'll hit full stride in terms of unlocking our new growth opportunities.
The coverage, device adoption, fixed wireless open for sale, 5G edge, and the transformative experience of millimeter wave puts Verizon in a position where our competitors can't go. With our best-in-class 4G, best-in-class 5G, critical fiber backbone with owners' economics, we believe 2024 and beyond will usher in elevated levels of revenue growth, combined with a best-in-industry cost structure. Getting more specific with revenue growth across the build, scale, and nationwide periods, let me first bring you back to our 2021 guidance with 2% plus growth in service and other revenue.
As I previously stated, that strong guide was made on the back of the momentum we've been seeing in our core operations across the second half of 2020, with strong wireless service revenue as well as 5G mobility gains associated with higher adoption of unlimited and premium unlimited plans, combined with the growth we delivered in Fios and Verizon Media. You've heard from both Ronan and Tami about the optimism they have for their businesses now and into the future. Ronan talked about his platform model in support of our Network as a Service strategy, the operating leverage inherent in our business, and our ability to harness those strengths to deliver multiple sources of revenue. Tami talked about the success her team is having growing subscribers and in selling both network and above the network layer services.
As we get into the scale period, 2022 to 2023, we're taking it up a notch, expecting to deliver 3% more service and other revenue growth. 5G mobility gains become even more material and are complemented on the consumer side by fixed wireless, and on the business side by MEC and real-time enterprise solutions. In our nationwide phase, 2024 and beyond, this is where we will fully unlock the benefits of nationwide C-band deployment and fully unlock the benefits of our millimeter wave build. With fixed wireless generating well over $1 billion a year in revenue and the expansion of our MEC business, you'll see us expecting to deliver service and other revenue growth of 4% or more on the back of strong performances from all of our segments.
As we accelerate revenue, you can expect us to maintain our normal cost discipline, resulting in strong EBITDA growth over this timeframe. Our strategy is working. Our core business is producing revenue growth today. More customers are experiencing the benefits of 5G Ultra Wideband every month on our millimeter wave spectrum, C-Band helps us accelerate the timeline and expand upon that growth. Let's move from the value we expect from acquiring the C-Band spectrum to how we will finance it and other impacts on the financial statements. We have two payments to the FCC due this month. The first was the initial 20%, minus the upfront payment we made in the fourth quarter, that was due earlier today. This was for $8.2 billion and was financed by our cash on hand, which was $22 billion at the end of 2020, including the $12 billion bond issuance last November.
The remaining balance of approximately $36 billion is due later this month. As you saw in our recent 10-K filing, we've arranged a $25 billion bank facility, and we expect to access the public debt market soon, assuming favorable conditions. We have payments to the satellite companies for clearing costs and incentive payments over the next few years, and we will provide more detail as the amounts are finalized. For the non-revenue related cash impacts from C-band. There are three main components that impact cash payments. First is the increase to capital expenditures. As highlighted earlier, we plan for an additional $10 billion in capital expenditures over the next three years as we deploy C-band. Kyle has full approval to spend as quickly as possible, and we will provide updates throughout the year on the progress of the deployment.
This spend will be in addition to our capital expenditure guidance of $17.5 billion-$18.5 billion for 2021, which you can expect will be at comparable levels through 2023. Next, cash interest payments are expected to be approximately $4 billion higher over the next three years, reaching a full-year run rate of $1.4 billion by 2022. This represents a use of cash and reflects the full financing for the debt associated with C-band. Lastly, cash taxes are expected to be approximately $5 billion lower for the next three years, with a peak benefit of approximately $2 billion in 2022. The cash tax line represents benefits due to tax depreciation on the $10 billion of CapEx, the higher interest expense, as well as tax amortization of the spectrum over 15 years.
The net cash outflow for these specific items over the next three years is expected to be approximately $9 billion, with the reduction in cash taxes more than offsetting the higher interest payments during that period. Excluding the CapEx component, the total net cash flow statement impact associated with cash interest and cash taxes will be minimal in 2021, with slight benefits in 2022 and 2023. We do want to take a moment to remind everyone of the treatment of interest expense within the cash flow statement. For the interest costs related to the spectrum acquisition, it will initially be capitalized and appear in acquisitions of wireless licenses as part of cash flows from investing. Once the spectrum is determined to be in service, this interest will then flow through cash flow from operations.
Additionally, capitalized interest associated with build-out costs will be included in the capital expenditures line as interest during construction. The capital expenditures line within cash flow from investing should reflect more than the $10 billion CapEx spend. The C-band transaction will also impact the income statement. Excluding the anticipated incremental revenue and EBITDA growth expectations, I've outlined the impact to the following below the line items. Depreciation and amortization will increase as a result of the additional $10 billion of capital spending, which will be depreciated over seven to eight years on average. The interest expense line will be impacted by the higher debt level, although this impact will be reduced in the next few years as the interest cost is capitalized while the spectrum and CapEx is being made ready to put into service.
We expect the net impact from these items will be insignificant to 2021 adjusted EPS. That 2022 will be impacted by approximately $0.10 and 2023 by approximately $0.20. While there is an impact to our balance sheet from the auction, our capital allocation policy that has served us so well will remain the same. You have heard details about the first priority, to invest in our business, including the $10 billion of CapEx over the next three years. You heard Hans mention earlier that we expect our capital intensity to reduce after this period. Our second priority remains our commitment to the dividend. We understand that the dividend is important to our shareholders and expect no change in our dividend policy, which has seen us announce annual increases for 14 consecutive years.
With the strength of the business and revenue growth trajectory, we look forward to putting the board in position to raise the dividend again later in the year. Our third priority is to have a strong balance sheet. We will continue to have a leverage target of 1.75 to 2.0 x. While the investment in the acquisition and deployment of C-Band will delay us achieving our targeted leverage and get into our fourth capital allocation priority by a few years, we continue to be committed to being at a point in time where we are able to execute on all four of our capital allocation priorities, including returning capital to shareholders in addition to dividends.
We ended 2020 with our leverage metric of net unsecured debt to EBITDA at the upper end of our target range. We expect this to increase to about 2.8 x at the end of the year and get back to the target range in a four to five year period. Our balance sheet leverage has expanded in the past when we have made important acquisitions. After those events, we committed to reducing our leverage, and we delivered on those commitments. We intend to do so again.
Let me close by saying I'm very confident with the path we're on to continue to execute our strategy. That focus has positioned us across the five growth vectors and to deliver GDP-plus revenue growth consistently moving forward. We believe the top-line trajectory and disciplined cost management will translate to EBITDA and cash flow growth consistent with our revenue expectations, which will enable us to generate strong returns on our investments to fund all of our capital allocation goals. With that, I'll hand it back over to Hans.
Thanks, Matt. I hope you have heard the excitement from me and my leadership team over the past hour. Just in case, I will sum it up. In a couple of weeks, my executive team and I will meet with our board for our annual strategy retreat to present our five-year plan. While I cannot share everything we will tell them, I want to give you a glimpse of how we will describe Verizon five years from now, as we pioneer the ways that 5G will transform our lives and accelerate and amplify our growth. We will be a company with revenues growing better than GDP, with strong margins, dividends, and EPS growth. A company with a strong balance sheet, cash flow, and leverage within our target range.
Through strategic investment, we will have C-band fully deployed across the country, paired with millimeter wave in dense locations, delivering the best and unique 5G experience only possible with 5G built right. We will remain the industry leader in consumer mobility, 5G home and office, and the partner of choice for small businesses, large enterprises, and governmental customers, enabling incredible applications not previously possible. I will leave you with this.
When we launched 4G, the market could not see what was coming around the corner, or that in matter of years, stepping out of the curb and hailing a cab would become obsolete. We're about to turn that corner again, there will be the next generation of unicorns ready to innovate on what we are building. That's not a prediction. It's a promise. It's an exciting time for us with tremendous opportunities ahead. We look forward to having you on this journey with us.
Thanks, team. I hope you all enjoyed the presentations tonight. I want to take this opportunity to point out that we are posting an infographic to our investor website as we speak. Next up, we're going to take a short break as we transition to Q&A. Stay tuned. When we come back, we'll open up the lines for analysts to ask questions. Great. We're back and ready to start questions and answers. First up is Phil Cusick from JPMorgan. Phil?
Hans, maybe two, if I can. One, Hans, can you talk about how you see wireless and fixed competition impacting your model on accounts and pricing? What's the base case on competitive levels over the next four or five years? Then Matt, there's another auction possibly coming later this year. Given your $50+ billion spending in C-Band, should we assume that you are still interested? Not interested? What have you told the rating agencies? Thanks very much, guys.
Thank you, Phil. I can start with the competition. I think that we have had, as long as I have been here at least, a very competitive market, and we foresee that going forward as well. I think that our positioning, I'm really happy with our positioning. First of all, we are leading the market. We have done a lot of transformation. We are now adding assets so we can even accelerate. We have models both in consumer with Ronan and with Tami, on the business side that we have now developed, and we're seeing good traction on all of them. Some of the growth vectors we have talked about today are definitely accelerated with this asset that we're now acquiring.
I have to say, I feel good about competing, and that's also why we talk about the growth trajectory that we see in front of us. That's, of course, based on the plans and based on there's going to be competition. Again, we will compete effectively in this market with the assets we have and the way we have set up the company. Before I go to Matt then on the spectrum piece.
As always, we will always look into all spectrum and see if that would enhance our way of dealing with data growth. We also need to say, we're very pleased with the assets we have today. We will always look into it and see if it fits in for us. Right now, I can tell you that we have a line of sight of the growth that we already started last year and enhancing that, and that excites me and my team. Matt?
Yeah. Thanks, Phil. Good evening. Good to see you. Look, as we think about where we are today, we're just very excited about the spectrum we just launched. As Hans said, we look at every auction that comes up. We have a model we use that values different spectrums, and we'll wait to see how that plays out. Right now, we're focused on getting to work starting tomorrow morning with the spectrum we just won in this auction.
Okay. Thanks, Phil. Next up is Brett Feldman from Goldman Sachs. Brett?
Thanks for taking the question. Two, if you don't mind. First, you talk about getting your 5G handset base, your postpaid phone handset base to greater than 50% penetration of 5G C-band capable devices by 2023. How do you plan on getting there? Is that the natural penetration you expect just based on the normal upgrade rate you see in your base, or do you intend to stimulate that through either subsidies or promos or other incentives? Then I just wanted to clarify the CapEx guidance. Is it fair to say that what you're expecting is that this $18 billion a year run rate will remain intact, and then you're layering on top of that over the next few years an incremental $10 billion? Whatever the right answer is that $10 billion reasonably consistent, or is it going to be front or back-end loaded? Thank you.
Thank you, Brett. I will try to remember the questions. I think when it comes to competing in the wireless area, which I will hand over to Ronan as well, we are of course feeling good about everything we have done since the unlimited launch 2017, the models we have and Mix and Match that Ronan talked about, and the value propositions we have. That of course, is the migration we see together with 5G. That's why I think me and Ronan and the whole team feel really good about it. Also remember, we have a really good traction on the business side with 5G as well, as Tami has talked about. I will come back to ask Ronan, but answering on the other question on the CapEx, just to clarify, Dan, if it wasn't clear. Yeah, we're going to have $10 billion over these three years.
That's going to be on top of our business as usual. We have basically told Kyle to go as fast as he can. We don't have any more information about that right now. If he can spend it as soon as possible, he will do it. Of course, there are some things that are enablers here as well. Finally, after that three years, and I think both Matt and I said it in the remarks, there's a lot of things that is also coming down, and that would be the 4G capacity.
We have done the majority of our millimeter wave build. We're also coming to the end of the fiber build. Then also CDMA will go to the end of life. All that together with the Verizon Intelligent Edge Network that we started with 2017, Kyle and me, that will then enable us to be even more cost efficient on our capital expenditures from those three years. That means that it will be lower than the BAU that we have today. Ronan-
Yeah
On the 5G phones.
Let me add to that. Look, we had a very strong kickoff on 5G, and as we said in the previous remarks, 70% of the 10 million devices in my base already are C-Band compatible. What we see is we see the work that we've done in the ecosystem, which has brought the price of access to a 5G Ultra Wideband compatible device below $500 as integral to it becoming the device of choice across all the range of customers. That in itself will accelerate a natural adoption, where previously we saw on the 4G, it was premium devices only.
That's the first thing we've done. Second thing is we roll out the C-Band. As we broaden out the availability of Ultra Wideband and the opportunity to bring a home broadband proposition, we will see opportunities for targeted growth there that will allow us to accelerate the natural adoption curve. That's why we believe that even Ericsson's most ambitious plan of 55% by the end of 2023, we believe we can exceed that.
Before we move on there, Brady, anything you want to add on the CapEx, or do you think I've clarified it?
I think exactly right. Just to be crystal clear with everyone, the $10 billion we reference is extra amount cumulatively over the next three years. That's on top of the $17.5 billion-$18.5 billion this year. We expect the next couple of years, the non-C-band to be at a comparable level to what you see for this year in the past few years. That gives you the sense there. As Hans said, we're just really excited as we think we get past that time period. There's a number of tailwinds, as we think about where the capital intensity should be.
Obviously, the capital intensity will be helped by the revenue growth. Even when we look at the absolute number, the Intelligent Edge Network spend will be largely done. The One Fiber build, the core build in the cities will be largely done there. Still have the success-based stuff, but the main upfront build, that'll be done. Hans mentioned CDMA retirement. As we get all this traffic over to 5G, the amount going on to add capacity to LTE will be reducing as well. We're pretty excited about that picture as we look a little further into the future.
Okay, Brady.
Yep. Thanks, Brett. Next up is John Hodulik from UBS. John?
Great. Thanks, guys. Two quick ones, I think. Thanks for the revenue guidance. Do you guys think you can grow or expand consolidated EBITDA margins despite the aggressive build-out that you'll have over the next few years, each year? That's number one. Then number two, in the past on the fixed wireless side, you've talked about a 20% penetration rate longer term. I think that was associated with the millimeter wave build-out and the 30 million homes. With the addition of C-band, is that 20% penetration rate still in the same neighborhood, or are there some potential benefits to that going forward? Thank you.
I didn't get the first question. Did you get it, Matt?
I did, yeah.
If you answer that one.
Yeah
Ronan and I will take the other one.
Yeah. John, I think your first question was on the EBITDA margins, and we certainly expect to see EBITDA dollars grow in line with the revenue growth trajectory that we laid out. When you think about the two different parts of the business here, the two reporting segments, obviously in consumer, we have best-in-class margins. The opportunity there is really drive the revenue growth and have that revenue growth. We expect to see comparable EBITDA growth in dollar terms within consumer. You heard Tami mention earlier, a lot of good stuff going on.
They've got the revenue opportunity in front of them. You combine that with the transformation work, they'll probably see flattish margins over the next couple of years or so with the opportunity to expand above 25% after that. Again, that's revenue growth, seeing that fall down to the EBITDA dollar line in proportional-type levels. Really excited about what we should see at EBITDA line and then what that does through to cash flow as well.
On the home, Ronan, of course, we are very excited over that we can now serve the nationwide with broadband, especially as we're seeing what's happening in the pandemic with the demand of broadband, we're right in place. Remember, we have multiple way of doing it, all the way from millimeter wave, C-Band, and we're doing 4G today, and we have the Fios. All of them are playing into that way we can serve our customers with the right proposition. Remember also, what we talked about right now was, of course, households. We know that Tami also mentioned that 5G internet is a great opportunity as well because suddenly we are broadband-enabled nationwide as well. We're excited over that, and what we can offer. I asked Ronan because there were some particular questions there about what market share we believe we can take.
Yeah. I think the key here is, look, and we have evidence already in our Fios footprint. We've developed a model Mix and Match, which has got real resonance with our customers. We started in wireless, we brought it into the Fios footprint. We already see that our ability to compete in the Fios footprint and to cross-sell mobile and home is stronger, and so it affords us an opportunity of a greater market share. As I said in my previous comments, I see the opportunity not just simply to go after share in-home as an isolated segment, but more particularly, to convert as many of those homes as possible, ones that we already are in as a wireless provider, into mobile and home customers.
If we're successful in doing that, not only will necessarily the cost of acquisition potentially be lower, but I do see a path to potentially exceeding a sort of 20% penetration rate. That's why I'm so excited about the fact that we've got this scale nationwide now because you bring the best wireless. Nobody debates the best wireless carrier in the marketplace, who's already got the market share, now is an opportunity to add another line to your wireless plan, which is a residential broadband that we can meet and exceed your opportunity. That's why we're excited about this.
Some great devices coming out at the same time. I will actually pivot also to Tami to ask her a little bit about the opportunity also with 5G internet, which is the name.
Yeah
Of the product that you are using for this.
We're also very excited about Verizon Business Internet, which is the name of our broadband. We announced that we're live in three markets today, and we'll expand that by another 20 markets by the end of the year. It's a natural extension for us as we serve our wireless customers today. As I shared in my remarks, we lead in overall wireless market share in every segment we serve. Now the ability to expand that and extend it into Verizon Business Internet positions us perfectly to serve customers in a way that we know they need from a connectivity standpoint, and then above connectivity around advanced comms and security. Really excited about the opportunity. Very well-positioned.
This is a payoff for also the hard work that Kyle and the team have done.
Yeah
for years preparing also 5G Home with the technology and all of that and devices. I hope you hear our excitement over it. Back to you, Brady. Sorry.
Yes. Thanks, John. We're ready for the next question. Next question's going to come from Simon Flannery from Morgan Stanley. Simon?
Great. Good evening. Thanks for your time. Ronan, you mentioned a significant acceleration in second half volumes. I wonder if you could just unpack that a little bit, what gives you confidence there? Kyle, if you could just talk about any opportunity to work with the satellite companies to get some early clearing, given you've got that A Block anchor position, particularly around the December 23 deadline.
Simon, I start, and I will ping it over to these. Simon, the consumer question you can take. On the spectrum clearance, you have to be clear that for us, we have been in anti-collusion rules until it's one hour and 20 minutes, so we haven't been speaking to anyone because we're not allowed. I don't think that we can give you so many highlights on that. We are working with the FCC timelines that they have given us on the spectrum clearing. That's what we're presenting here and how we're executing on that. I start with you and then see if Kyle has anything more.
Sure. Simon, my earlier comments, there's a number of things. We have a natural seasonality to our business, as you know. We also see an accelerated recovery from the pandemic that will certainly play out in the second half. We also have availability. I started the first quarter with 250 stores closed, and as I tweeted out earlier today, I'm now essentially 100% open.
All of those, plus the increasing resonance of my Mix and Match proposition, just give me the confidence that there will be a better market opportunity there. The other thing is that as we go through the year and subject to our regulatory approval, we're excited about the opportunity to not just be in the premium switcher pool, but also participate in the prepay switcher pool. More to go there as well. Closing out the year with the opportunity to fire up the C-Band and go after that opportunity.
You tweeted today?
I did.
Okay. Kyle?
Hans covered it. A couple of things I'd say is we're focused really on the process right now of getting this cleared on time so we can use this as quickly as we can. We did anchor ourselves down in A1 to give us optionality. We're furthest away from the satellite operations, and we feel really good about where we ended up because we're in A1 across all the markets.
Great. Thanks, Simon. We're ready for the next question. We're going to go to David Barden from Bank of America next. Dave?
Hey, guys. Thanks so much for taking the question. I guess the first one I would have maybe for Hans or Matt, this 3% guidance for revenue growth, can you match that to the 2% growth expectation for ARPA? Is TracFone in that? How does volume contribute that? What's the X factor that contributes to that 4% as we get into the kind of nationwide deployment element? I guess the second question is for Kyle. The A1 anchor block, furthest away from the incumbent satellite providers, it's also nearest to the CBRS providers, and there has been concern that it could be the noisiest of the blocks of C-band that are out there. Can you communicate why you're comfortable that that's the best place to be? Thank you.
Yeah. Let's unpack the revenue. I let Matt do that, and then we come over to your question on the spectrum.
Thanks, Dave, for the question. As you think about the revenue, certainly it's anchored on the growth that we're expecting to see this year. Service and other revenue 2-plus% built off the strong momentum you saw at the back end of last year, not just in wireless, but also in Fios and Verizon Media as well. As you think about getting into 2022 and 2023, what you're going to see there as we bring on those first 46 markets in mobility, we already saw this late last year where customers have the opportunity to get on our Ultra Wideband network. We see the upgrade rate increase. Obviously as we have more customers with that opportunity, we expect to see the revenue increase on the mobility side as a result of that.
Obviously, the fixed wireless access, we expect to bring on a number of homes as open for sale this year, then we'll get the sales machine going against that will obviously start building revenue in 2022, then that flywheel will start getting going. Then on the B2B side, Tami obviously will also participate in both the mobility and the fixed wireless access. On top of that, you heard her talk about the opportunities really starting to show up in 2022 from a revenue standpoint. Won't be that large in 2022, again, it's getting that flywheel started so that as you get into the out years, it's growing from there. That's the pivot from 2% to 3%. Then as you get to 2024 and beyond, the 4-plus percent is built on the fact we get to do that nationwide.
Across all 48 states, no gaps in the coverage anywhere. We'll have got the momentum in the first 46 markets behind Fixed Wireless Access. That should really be expanding then. Certainly the Mobile Edge Compute opportunities become much more material at that point in time, too. When you bring that all together, that adds up to what we think is a very exciting revenue forecast at an outlook that we looked at earlier. That's how we'll build there.
Thank you. Kyle? Fill those points in.
In terms of the CBRS spectrum, we've been working with the CBRS spectrum for years and years and years. This is spectrum that's very well understood by us, and we do not see any problem whatsoever being up against our C-band holding here. We think it actually complements it very well. We're starting to put the CBRS out there. We're getting momentum with that, and adding C-band to it is just going to really amplify things here. We are very, very comfortable with our position here.
Great. Thanks, David. We're going to move to the next question. Next question is going to come from Craig Moffett of MoffettNathanson. Craig?
Hi. Thank you. Thank you guys for doing this tonight. Two questions if I could, they're related. First, the $10 billion is presumably about primarily densification. What assumption do you make about the uplink band for that densification? Is the assumption that you'll be using the 3.7 uplink and downlink, or are you assuming a lower frequency for uplink? If so, what frequency and how do you clear it? I guess a related question for Matt is, what are the margin implications of that? The $10 billion presumably has some meaningful pull-through of OpEx as well as CapEx. Whether it's tower leasing or even powering costs that we hear a lot from China about how much it costs to power a 3.7 network. I wonder if you can just talk about the OpEx associated with deploying this spectrum.
Thanks, Craig. I can start, and then I will ask Matt then. I think first of all, as we said in our prepared remarks here, that first of all, we're using the existing grid because our existing grid is good. We are using the towers that we already have when we're deploying right now. That's the 7,000 to 8,000 sites we're doing. We feel really good about that. When it comes to OpEx, that has, of course, an implication that we're using whatever we have. Kyle?
Yeah, no. Our network is already very dense. We build our network to have overlapping coverage. We don't engineer our network to have cell edges just meet at the fringe. We have a lot of overlapping coverage. The C-band fits exactly right in this perfectly into the overlapping coverage we already have. We don't see a need to go down into low-band spectrum to augment an uplink.
Right.
That's not what we have to do. Like we just said before, we've been able to talk about this for an hour and a half. At some point, we'll definitely come back to you, and we'll talk about what our band plans are and how this will work. Right now we have such a dense, great network. We're going to put this spectrum to work on the assets we already have.
Certainly in rural areas over time, we'll probably need to do some fill-in, right now it's all about space, power, cooling, getting the antennas on there and getting the connectivity to the cell sites to supplement the bandwidth required. We feel we have a great line of sight here. We'll do this very efficiently. The other thing that I think that's really important is this is a global band, there's economies of scale here already, and it'll only amplify as we put this out there and drive more into the ecosystem here. We feel really good about how efficiently we can deploy this asset.
Yeah, we shouldn't forget that we actually have the absolutely best 4G network in the nation, and we're building on top of that. There's a reason why we have this position we have. I would say this is basically extending our lead. That's what this is doing to our business with this new asset, that's why we're so bullish on the acceleration of the growth and the amplification of our business opportunities. Matt?
Craig, as you think about the OpEx, when we spoke earlier about obviously the revenue growth, and we said the EBITDA should grow by a similar profile as the revenue growth. That includes the assumption around any OpEx associated with running the network. 5G is going to be a more efficient network to run on a per gig basis, we know what to expect to come here. Certainly, as we build those sites out and we see the cost come through, that's already baked into our assumptions. Very excited about the revenue growth and EBITDA growth that we're going to generate as a result of having this spectrum in our portfolio now.
Great. Thanks, Craig. We're ready for the next question. Next, we're going to go to Cristina Rosenburg from Citigroup. Cristina?
Hi. Good evening. Thank you for taking my question. I have two questions, one for Matt and one for Hans. Matt, as you mentioned, you've been at the high end of your target leverage range for the better part of this year. What advantages do you see in having low Baa1 spreads and credit metrics? For Hans, in light of that question and with respect to your financial policies, is it important to you and to the board to achieve that leverage target again and potential credit rating uplift given your five growth vectors and all the investment opportunities you presented for us tonight?
Thank you, Cristina. Definitely. As we outlined, we of course have a very tight conversation with our board through this process and the auction. We also have clearly said that we think it's good for our company and for the flexibility that we are in the target range we have talked about. Just look at what we have been able to do the last 12 months. We have refinanced all the balance sheet. Matt and our treasurer, Scott Krohn, have done a fantastic job because we had that rating. Remember also, we've had several of these type of iterations over time. We had the Alltel acquisition. We had the Vodafone buyout. Both of them brought up our leverage. Ultimately, we have been very committed to come back, and we're committed to come back right now as well.
It's part of our capital prioritization, and which is not changing because of this. I think we're proven over time that we're really good at this, and I'm really excited over my treasury department because they're doing a great job. No, this is important to us because it gives us the flexibility. That gave us the flexibility, what we're doing here today. We're talking about this asset that we're now adding to our portfolio and strengthening the leadership in this market. Yes, it is important to us and it's important to our board.
Cristina. Hans has really hit the point there. It's the ability to take advantage of opportunities when they come up. Opportunities that allow us to grow the business, to accelerate the strategy. Having a strong balance sheet lets us do that. Not just to get the spectrum that we want in the auction, but then to also be able to deploy the $10 billion of CapEx, so we can deploy the spectrum as quickly as possible and generate returns as quickly as we can. That's obviously incredibly important to us. As Hans said, we've been on this journey before, with Alltel and then Vodafone. We put the balance sheet back in a great position. When you think about the rating agencies, we've had some great conversations with them. I think they have all now come out and showed that they're keeping their ratings where they were.
They understand the importance of spectrum to us. They couldn't be a more on, straight down the middle of the fairway acquisition that we can do in terms of something that's consistent with our strategy. So you see Fitch has maintained the A- rating and Moody's at Baa1, S&P at triple B+, because they understand that not only the importance of it, but the track record of delivering on our commitments around the balance sheet. We intend to do that again. Finally, as a result of that, it gives us access to a variety of funding sources out in the marketplace, which helps us with our overall cost of capital. Having a strong balance sheet has a number of benefits for us. It's served us incredibly well and, based off that, you should expect us to continue with that policy.
I just want to add on that, these are generational commitments that we're doing to shareholders and bondholders. Neither Matt nor I was here or anybody else when we did the transaction of Vodafone. You were there, but in the treasury function. The commitment that my predecessor was doing, we have that commitment, and the board is fully supporting for it. That goes also for the deployment and the acceleration we're doing. Hopefully you have seen the track record of the commitments we're doing, we're delivering on.
The same is going to happen with the things we're talking about today. For me, that's important to tell to all the investors out there and the bondholders that we are extremely committed to the plans that we're presenting today. We have been working I can tell you this team has worked 24/7 to see that we have a holistic thinking of what we're doing. I'm extremely proud of the team, and where we are right now. I've said I'm excited. I've said it before.
Great
I will not say it anymore. Ready. With you.
Yes. Thanks, Hans. We're going to go to the next question. Next question is from Colby Synesael from Cowen. Colby, how'd I do? Did I get it right?
Yeah, you did. Thank you. You mentioned as part of the fixed wireless that you're intending to pass 15 million homes, I think by the end of this year. You mentioned, I think, 1 million to 2 million of those are millimeter wave, the remainder are sub-6 GHz. Curious for the sub-6 GHz, what's the speeds that you're thinking you'll be able to get off of that network? Are you planning to price the millimeter wave and the sub-6 GHz at the same price given probably different value propositions?
Also, when are you expecting to actually start breaking out the subscribers for your fixed wireless product? I have to imagine most people haven't yet put it into their models. It would be helpful obviously to start seeing those numbers, trying to get a sense of what the pricing and ARPU is going to be, so that we can start to see for ourselves how you get to that 3% and then ultimately that 4%. Thank you.
Yeah, I will start, and I will have some help over here. First of all, we will have competitive speeds on our broadband offerings. We have all the assets we need right now to have very competitive offering all the way from our millimeter wave to the C-Band. I think that we can play in all the different layers of broadband in the market, and that's why we're so excited. Historically, we have had great spectrum, but maybe not most spectrum in the market, but we also have the best engineers that actually can put this together better than anybody else. Sometimes we are a little bit too focused on one asset. Remember, we have all the assets to actually deliver on what we're talking on today. That's needed.
You need the best engineers, you need the best spectrum assets, you need the distribution that Tami and Ronan have, and you need to have a brand that we worked enormously in the last couple of years. For me, this is a holistic work we're doing in the Verizon 2.0 era. I'm really happy with how it's coming together with our strategy. Remember, this is just amplifying our strategy. We're not changing our strategy. We have a Network as a Service strategy, multipurpose network, and we have a go-to-market that is defined, and now we're adding just the strength. I will ask you two to comment on what you see.
Yeah. Colby, thank you. What you should think about is we built a model which is Mix and Match. We've already created the concept of tiering within value within our unlimited plans. As we go into the residential broadband market now, potentially on a nationwide basis over the next couple of years, you should think about that as an augmentation and amplification of a strategy that's a seamless strategy around Mix and Match, around choice for customers. This idea of tiered value, not all the elements necessarily purely network elements, but also other value elements with the partners that we have and things like content and other places. You should see that as the approach that we'll adopt. To a large extent, I'm going to be somewhat bearer agnostic.
I'm going to have a holistic home strategy, which will have within it fiber assets, we'll have 4G LTE assets, and we'll have 5G assets. What you should generally expect is that our Ultra Wideband proposition will include our C-band and our millimeter wave, so that it's clear and simple for the customer. The opportunity for us to tier value is something that our customers appreciate already. I think it's a natural thing for us to do as we expand out. As I said on the comments earlier is, the ultimate opportunity for us is that we're essentially selling another line and actually getting paid for that extra line, which is really good, when we offer our customers the opportunity to have home broadband as just another line on their wireless account.
Before I come to Matt, and maybe Kyle, we have been fantastic to manage capacity. The question is also, can you do all this? With the assets we have and how we design the network, how do you see on capacity going forward?
We're more than doubling the amount of spectrum we have that we've up to this point for 30 years.
Yeah.
Now we'll be able to put this to work really quickly and along with all of the other assets, to Ronan's point, we've become agnostic. We're going to put all of our assets, all of our spectrum together, whether it be sub-6 or millimeter wave, and we'll meet the market with that extra capacity so we can do both mobility cases and we can support a Fixed Wireless Access product nationwide. That's the key here. We're excited about it as engineers. We can't wait to start getting after it and building it.
Starting tomorrow morning.
Yeah, we didn't forget the question about the metrics when we start reporting, and I will ask Matt for that.
Yeah. Thanks. As you think about the metrics on Fixed Wireless Access, as you get to that significant increase in open for sale this year, obviously, the really getting the flywheel going on the millimeter wave, you see the volumes you talked about there, one to two million, by the end of the year. The LTE Home, we haven't spoken a lot about. We launched, was it October of last year? We'll see that, and then obviously as the C-Band gets turned on, be a big component there. I would say imagine that as you get towards the end of this year, we'll see enough customers as part of that and revenue associated with that it would make sense for us to report against it.
Okay, great. Thanks, guys. We're ready for the next question. Next question's going to come from Doug Mitchelson from Credit Suisse. Doug?
Thanks so much. Kyle, I'm glad you're getting a good night's sleep tonight. I thought you'd be starting right after this call. Look, I appreciate the sizing, Hans, of the MEC-driven revenue opportunities, $30 billion by 2025. I'm trying to figure out how much of the value lies with Verizon versus, say, the hyperscale cloud operators, and what kind of market share should we be thinking about for Verizon?
The reason I ask is I'm trying to tie the $30 billion revenue opportunity versus the incremental point of growth in 2023, then another incremental point of revenue growth in 2024 and beyond, which is sort of $600 million+ incremental revenue per year. Perhaps for Ronan, the well over a billion dollars of Fixed Wireless Access, how much of that is coming from existing Fios or DSL customers coming over to Fixed Wireless Access versus just incremental Fixed Wireless Access customers, incremental customers for the company? Thanks.
Thank you. I can start on the mobile edge compute. I mean, your question is great. I mean, now we're formulating how big the market we believe it is. Remember, we are the only one in the market with this offering. I think that is very clear. We are absolutely lead in mobile edge compute. We have been working on this for two, three years with Kyle, with Amazon. Now we're including on the private side with Azure and Microsoft. We are the market maker here. We are building this market. As Tami said, there are two different models here.
One is, of course, the revenue share when it's a public cloud, where basically Amazon is distributing this. They are taking the lead. Then we have a share of the total revenue. We cannot tell you exactly what that is because that is a little bit confidential, but we are happy with the deal. On the private side, we talk about the private network and all of that is basically enterprise solutions.
Yeah.
That's what we see. Maybe you want to expand on that.
We're super excited to be in market with edge compute today, the only ones in market, and Amazon has certainly been, AWS, a great partner as we've opened up the capability to their million developers around the world to really develop applications and solutions. As Hans said, while I can't give you the details of those rev share models, what I can tell you is that we expect MEC to be a multibillion-dollar opportunity over the five-year period of time. It really does come from the fact that we have two models, one public, one private, and then we have the opportunity to participate in private networks. As we're talking to customers around the world in their transformation efforts, and those have accelerated over the last 12 months, they view private networks as an important part of that transformation.
Then on top of that, we have the ability to develop enterprise solutions, real-time enterprise solutions, and we're seeing incredible use cases today around healthcare, around retail, around manufacturing. It isn't something we're just talking about. We've made this market, and we're just getting started, and there couldn't be a better time to lean in and help our customers as they reimagine and transform their business with digital at the core. I'm super excited about it.
Doug, just to add on that, I mean, 2018 and, I would say, 2019, 2020, we talked about customer. What edge is a nd the use cases and all of that. Now in 2020, we started doing trials with them, and in 2021, we're starting to do commercial deals with them. This is something we are actually establishing in the market, and we have the best partners you can ever imagine.
Yeah, I think as Matt said, we're tracking to that 2022 revenue. It will scale after that. It's one of the key levers of my margin accretion and the ability to scale that, too.
Yeah. That's true. Ronan, it was a question about some broadband and some Fios.
What you should imagine is that we see growth in the Fios footprint, in our fiber business. We see growth in 4G LTE as a Fixed Wireless Access product, and we see growth in 5G Fixed Wireless Access. The only place we see cannibalization is that as Kyle builds out the C-Band network, it's likely to be the case that I will have the opportunity to upgrade many of my 4G Fixed Wireless Access customers for them to take a superior 5G product. It's growth across all of the vectors, and then an upgrade path for those customers who would currently enjoy the 4G Fixed Wireless Access product.
Again, what we're creating with the Network as a Service, we create optionalities. Optionalities of different type of broadband solutions, and as well as what type of content you want on top of it, as well as if there are other solution you want with. Again, that's the way we're working to moving our customers with us and seeing that they get even more value, and that goes both for the business side and for the consumer side. Built on the, I am repeating myself all the time, Verizon talent and network, because this was the idea that started 2017, because then we can monetize better than anybody else, better return on investment. For me, it's coming together.
Great. Thanks, Doug. We're going to go to the next question. Next question is from Peter Supino with Bernstein. Peter?
Hey, Peter. Thanks for the time. Thanks for being here. I wanted to ask about 5G home. I apologize in advance for a couple of numbers here, if we do achieve a 20% penetration of a 30 million home footprint, that would be 6 million 5G home customers. By our math, a family's home presently consumes about 15 times the data per month of a family's post-paid wireless account, assuming about three lines. 6 million homes times that 15 number puts a demand on the network that looks a lot like 90 million wireless accounts, basically doubling your post-paid phone business. With consumption rising and C-band propagation a fraction of your core low-band portfolio, I'd love to your help with conviction about how you can commit to that type of load.
First of all, I think we've said it, I will also ask my colleagues here, we feel really good about the capacity. Remember, we have a capacity all the way from the millimeter wave, we are just using a fraction of that. We're just getting the C-band, which as I said, is 120% more than we had since we started wireless. That was, I don't know how many years ago. It was long ago, long before me and this team. I think that spectrum is one thing, that's how you engineer it, how you put it together, we have been constantly managing capacity better than anybody else in the market.
Even I remember because I just entered this company when we launched Unlimited, everyone said, "Oh, you will never be able to manage that. It's going to be three X, four X." We have managed that, as you can see. No interruption at all. People are using the network more than ever. I have the confidence in the guy and his team to the left here. They have done miracles with our network. They will continue to do it. I'm convinced. Hopefully, we can convince you. I will try with some other people here to the left of me.
Peter, let me start, and then I'll hand it to Kyle here. I just reference you back to the point that Hans made in the arrival of Unlimited. Traffic went up 98%. Traffic in the busy period went up by less than 20%. This is about yield management on Network as a Service. This is about optimizing throughput. This is about the opportunity to actually develop a range of products and services that maximize the utilization of the depth of capacity and capability that we will be able to deliver in this network. The seamless integration of our millimeter wave with our C-Band affords us the opportunity to have a depth of capacity. If I was asking the question, I'd ask the question about cable guys. They will probably have more capacity challenges than I will in the short-medium term. Kyle.
Yes. Ronan hit it right on the head. We're bringing a lot more spectrum to market. We didn't really talk about CBRS so much today.
No.
We're bringing that in the portfolio, and we have a massive amount of millimeter waves. We're having this spectrum, but we're also working on technology. The technology advancements will keep coming, and we will keep getting more out of the spectrum. Like we talked about earlier, we've been great stewards of the spectrum in driving more and more efficiencies, and we'll continue to do that, and we can bring on more and more usage onto our network. We'll have the capacity for it. Now, another key thing is the fiber. Fiber is very important.
The backhaul is very important. We've been working on this for years through our One Fiber program and others, and that is another piece of the equation. Finally, the core network needs to be able to scale and handle this amount of data, and we've been working on this for years. It's all part of the Intelligent Edge Network and all of the upgrades and the modernizations we're doing so we can take on this amount of usage onto our network.
As the usage are moving as well, you used to say that, Kyle, all our spectrum is going to be 5G ultimately.
That's it. Ultimately
if all the phones are on 5G, as we're done from the 3G to 2G migration. I think we have clear line of sight that we can handle this, and we would be happy to see all those customers that you are calculating coming onto our network.
Yeah, that'd be great. Okay, next question. I think we got time for two more. First up, we're going to go to Frank Louthan with Raymond James. Frank?
Great. Thank you very much. Two quick questions. When we look at the investment that we have here, what kind of return on invested capital can investors expect with what we're spending here on the spectrum and in the additional CapEx? Secondly, you mentioned the cable companies. How does this fit in with them? Was there anything in the change in the renewal of the MVNO contract that made you more inclined to spend this much on the spectrum? How should we think about that? Thanks.
I can start with both and then I'm going to hand over. When it comes to return on investment, I think that it's a reason why we want to accelerate this asset to coming out in the market as soon as possible in order to get the best return on investment so we can monetize it as soon as possible. Hopefully you heard from us tonight that we are really committed to that monetization very quickly, as soon as we have the spectrum clear, we have business plan, we have products. That's a very important piece for us. Do you want to add something on that, Matt?
Yeah, just real quick on that. As you think about any time that we have a spectrum auction, we have a proprietary model that we've used for many years now as we think about how individual pieces of spectrum are valued versus other ways that we can bring functionality into the network. That model has served us incredibly well, and it did so again in this auction. We have definite line of sight to a return well above our cost of capital as a result of the investment we made, both the investment in the auction and also the $10 billion of capital to deploy it as quickly as we can.
The return is significantly driven by the revenue generation we spent a good amount of time this evening talking about. When we see those revenue opportunities, we compare it in terms of what it would cost to get that out of the network versus the auction. We feel very good about getting, as I say, an above cost of capital return here that I think we'll be proud of over the years.
Ronan on the MVNO partners?
Yeah. When I think about the wholesale partners, I think really around the strategy which is built around the capability that Kyle delivers, which says we have capability and capacity at scale on a nationwide basis. As a result, we are the partner of choice in the wholesale market. It's a clear strategy for us. We have a hierarchy of opportunities, and we work very closely with our strategy to make sure that our premium Verizon customer is number one in that hierarchy. We have the opportunity to open up new addressable markets for the quality of network and the capacity and capability we have.
That's why we believe we're an excellent partner with Network as a Service. To the context of that, we see more opportunity in that space as we deepen and broaden existing relationships and enhance the capabilities available. We also see a pipeline where we're confident that we can continue to grow in that, which would just simply complement the opportunities in our premium, and subject to regulatory approval, our opportunity to have direct access to the value market.
As we have said several times as well, these MVNO partners, wholesale partners, they are super important enterprise customer for us, so we work with them, as we would do with any of your customers, Tami. For this, it's important for us, and I think that Ronan and team has done a fantastic job to work with them, together with Kyle, to see that they get the right technology, the right capabilities from the network. We are happy with the partnership, and it seems like they are happy as well, so we will continue.
Great. For our last question tonight, we're going to go to Kannan Venkateshwar from Barclays. Kannan, how'd I do? Did I get it close?
Close enough, really. Thanks for that. A couple of things on the revenue model. Broadly, the way you guys have described this growth trajectory, accelerating 100 basis points next year and beyond, it feels like a lot of that growth is pricing dependent more than unit dependent. The unit growth will come from fixed wireless, but of course, that has different dimensions. It's not volume dependent. It's more of flat price kind of an environment. First of all, I just want to get a sense for that particular interpretation, whether that's correct at all or not. Then secondly, when you think about the wholesale partnership opportunity, we tend to think about cable as essentially the set of opportunities that you guys have on the wholesale side. Is there anything beyond?
Earlier when you were describing the opportunity, it felt like there were some other opportunities even beyond cable you guys might be thinking about. If you could just expand on that. Lastly, just for Matt, the capital intensity comment, I just wanted to get this clear. When you say it drops beyond the three-year deployment period, does it drop back to the $18 billion in absolute terms, or are we talking about essentially the network efficiency also kicking in and making that lower than the $18 billion number?
Okay. I was standing up. It's a little bit hard to sit here, but now I'm sitting again. Sorry. Kannan, on the first question, remember, we have five vectors of growth. We have them all in play right now. Some we basically don't have any revenue today in, like the Mobile Edge Compute. It's a market where basically every dollar is a new revenue. The other is, of course, 5G Home, which is going from the 5G footprint we have together with millimeter wave and C-Band.
We're just going to a new market together both on the both sides. Of course, we have all this expansion together with our customers, especially on the consumer side. We can compete effectively on the market. I think there are many different things, and that's why we talk about the five vectors of growth. These are the five vectors that are on the pin of the network we're building, where we have a cost advantage. Maybe you want to add something, Ronan?
Yeah. Kannan, what I would say to you is that if I take and interpret pricing as in one needs to move prices too, we have demonstrated with our Mix and Match strategy and our tiering within our unlimited, the ability to expand engagement with our customer and actually tier up where we add incremental value, some of it network-based, some of it other. That's all value-creating. We see the opportunity to continue to do that and then to broaden out from that in the vectors of growth that Hans described. We essentially said to you, underpinning that is ARPU and ARPA growth and volumes.
Within that, it's the subscriptions itself. It's a growing subscriptions base as we think about products that are growing as well. Cloud and other things where we have significant growth opportunity. Then add in the opportunities like residential broadband. In that regard, we see a great opportunity for us to expand what is essentially the share of wallet and share of engagement we have with the high-quality customers that we have a relationship with today. I give you an example of going into home.
Of course, the primary opportunity starts with accessing the home and selling a residential broadband offering. In the home, there's a significant opportunity for us to scale up in the other products and services that we sell either directly or in partnership, and we've evidenced our ability to do that. We're very confident that we have more than enough levers to grow, both in the quality of the core base, growth in the base itself, and then expanding out the engagement and opportunity with those high-quality customers.
Matt, do you want to qualify the.
Yeah
Our common comment on the capital intensity.
Exactly. Let me put some numbers around it, Kannan, to help be clear. As you think about the capital intensity, the BAU capital intensity, over the last two, three years, you set the midpoint of the guidance this year, it's $18 billion. We've been in that level. The capital intensity, based off of that, has been fairly consistent. When we talk about the capital intensity we're reducing, we're talking against that, not against the elevated level that includes the $10 billion over the next three years. Certainly, even if we just came back down to $18 billion after those three years, and you have the revenue growth that we've described that we're going to deliver, that would mean your capital intensity came down.
We have the opportunity with some of those tailwinds we mentioned earlier, around what we see coming through the CapEx, such as on the Intelligent Edge Network, the One Fiber, the CDMA retirement, et cetera. When those headwinds, sorry, tailwinds, start to come in at the same point in time, we're looking at the opportunity of can you see the actual absolute CapEx number come down. We're too far away from that right now to say with certainty, but it's pretty interesting for us when we think about what that opportunity might look like when we get out to that point. It's the reduction intensity, not just driven by the increase of revenue, but also where you think about where the absolute level of CapEx dollars might be.
What's another question also on the beyond wholesale, what can we see there? What about other customers? I mean, you work with this every day.
Yeah. I think that's where, look, we see further growth in what I would describe as traditional wholesale, but by redefining the relationship with the facilities provider and the partner, and that's something that we're doing today. That creates opportunities in itself. I think we absolutely can go beyond that, and we see relationships as we think about categories like AR, VR, gaming, other things like that, where you might see new concept, new types of partnership model. Whether you call it wholesaling or partnering, I wouldn't get too caught up, but our partnering platform. We are the largest direct-to-consumer distributor of digital product and service in the U.S. We think that's an incredibly valuable asset to be used very discerningly with high-quality brands. As a result, we will evolve the model in the way we work with those brands. Watch this space.
Also pivoting that even though some of these opportunities will materialize a little bit later for you, Tami, and we didn't speak so much about it today, but with the fiber and the wholesale because we have the same opportunities in your area. We also said on the One Fiber, so we're clear on that we focus firstly on our own 4G and 5G network, which you talked about. After that, when that's over, then there is also the opportunity for you both in wholesale, but also building on top of this.
I think it's really important as we step back and look at 2.0 and we set out on 2.0, we said we'll serve customer segments, small and medium, global enterprise, and our public sector, and we've continued to do that. We have never been better positioned.
Right to meet the needs of our business customers. The ability to clearly articulate and deliver not only network products, but above network on platforms and solutions, whether it's mobile edge compute, whether it's private networks, what we're doing around real-time enterprise solutions. One of the areas we haven't talked about tonight, but is a growing area is, and I acknowledged it in my remarks, we had 10 million new machine-to-machine connections last year alone. The sensors that go out, the sensor densification, the ability to really be there for our customers, small and medium, global enterprise, public sector, not only with connectivity, but really winning above connectivity. We are very well-positioned to not only deliver from where we are today, but grow into new models where we are in today and will only continue to expand.
I just want to reinforce that the scalability that we've seen in consumer
Yeah
That you were talking about all your platforms and how we now are growing, that is now coming to business as well. That's how we set up Verizon 2.0 with Kyle, not in the bottom but I always think in PowerPoint slides, so I shouldn't do that. He is sort of supporting with the network and service, and then we can scale on both sides here. Now you can hear our excitement around what we have in front of us and how we have been building our five-year plan, how we started in Verizon 2.0 and all the work. I know we're at the end here, but I also want to say, Verizon Media Group, we don't talk much about them today because it was very much around our asset acquisition.
We also need to thank them because the turnaround the Verizon Media Group has done from when we started and actually had growth for the first time ever in the fourth quarter last year, and that was not a bad growth neither. They are also on their way to sort of leveraging their scale, which was also the plan from the beginning, even though we changed the business plan totally for them. Yeah, we are in a scaling mode right now. That's where we operate in.
Great.
You want to say something more?
I think that's a great place to finish, Hans. We are now two hours and one minute past the anti-collusion period. I know Kyle's team is ready for him to get upstairs to get to work. Everybody, thanks for a great night, be safe, and we'll talk to you soon.