Verizon Communications Inc. has entered into an agreement to acquire Frontier Communications Parent Inc. for a whopping $20 billion. The deal will give Verizon the largest pure-play fiber internet provider in the U.S. under its umbrella.
Additionally, Verizon said the deal will expand its intelligent edge network for digital innovations like artificial intelligence (AI) and internet of things (IoT).
Frontier’s fiber network will be integrated into Verizon’s fiver and wireless assets including the Fios technology.
“The acquisition of Frontier is a strategic fit. It will build on Verizon’s two decades of leadership at the forefront of fiber and is an opportunity to become more competitive in more markets throughout the United States, enhancing our ability to deliver premium offerings to millions more customers across a combined fiber network,” said Hans Vestberg, Verizon chairman and CEO.
Benefits
Under the deal, Verizon will give Frontier users more offerings outside fiber including its mobility, home internet, streaming and connected smart home devices.
Verizon said it will immediately integrate the fiber network once the acquisition is closed. Together, the companies will have about 10 million fiber users across 31 states with fiber networks passing more than 25 million premises. After the deal is completed, this fiber portfolio will be expanded to more cities and states, the company said.
Verizon will also gain access to the user base in markets in the Northeast and Mid-Atlantic.
Aligns with Verizon’s long-term strategic plan. The acquisition of Frontier is consistent with Verizon’s core strategy of growing and strengthening customer relationships. This transaction is expected to expand Verizon’s share of the nationwide broadband market, building upon Verizon’s two decades of leadership at the forefront of fiber.
Frontier’s coverage
Frontier invested about $4.1 billion over the past four years to upgrade and expanded its fiber network.
This allowed the company to reach 2.2 million fiber subscribers across 25 states. It will join Verizon’s Fios connections of about 7.4 million subscribers in nine states and Washington D.C.
Verizon said it will continue Frontier’s plan to build out an additional 2.8 million fiber locations by the end of 2026. Currently, Frontier has 7.2 million fiber locations.
