Why it matters: Verizon realizes the importance of 5G technology. By getting its ducks in order now, the communications giant will be able to focus exclusively on becoming a market leader in the 5G era. Big changes are coming to wireless and Verizon wants to continue to lead the way.
Verizon CEO Hans Vestberg on Monday announced a substantial restructuring built around three key customer-facing areas: Consumer, Business and Verizon Media Group / Oath.
The restructuring, which goes into effect January 1, 2019, will help Verizon deliver improved customer experiences as it gears up for the 5G era. It's the biggest action yet from newly appointed CEO Vestberg. Longtime Verizon chief Lowell McAdam announced his retirement in June with Vestberg taking over the reins on August 1.
The Verizon Consumer Group will consist of the company's wireless and wireline businesses as well as wireless wholesale. It'll be led by Ronan Dunne, current Verizon Wireless president. The Business Group, meanwhile, will be led by Tami Erwin, and include wireless and wireline enterprise, wireline wholesale, Verizon Connect, government businesses and small and medium business. Guru Gowrappan will oversee the Verizon Media Group / Oath which will be in charge of media, advertising and technology.
All company operations will also be served by Verizon's Global Network & Technology organization. This segment will be run by Kyle Malady, the current chief technology officer and chief network operations officer.