Verizon announced today that it is acquiring fiber network provider Frontier Communications in an all-cash transaction valued at $20 billion. Frontier—which emerged from bankruptcy in 2021—is the largest pure-play fiber internet provider in the U.S. and adding it to Verizon’s portfolio will significantly expand Verizon's fiber footprint across the nation, “accelerating the company’s delivery of premium mobility and broadband services to current and new customers” and “expand Verizon's intelligent edge network for digital innovations like AI and IoT,” Verizon said.
Verizon plans to integrate Frontier’s fiber network into Verizon's fiber and wireless assets, including its Fios network. Over approximately four years, Frontier has invested $4.1 billion upgrading and expanding its fiber network, and now derives more than 50% of its revenue from fiber products. Frontier’s 2.2 million fiber subscribers across 25 states will join Verizon’s approximately 7.4 million Fios connections in nine states and Washington, D.C. In addition to Frontier’s 7.2 million fiber locations, the company says it plans to build out an additional 2.8 million fiber locations by the end of 2026.
“Connectivity is essential in nearly every part of our lives and work, and no one delivers better than Verizon,” said Verizon Chairman and CEO Hans Vestberg. “Verizon offers more choice, flexibility and value, and we continuously look for ways to provide the best product and network experience to our customers as we bolster our position as the provider of choice.”
Vestberg added: “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.”
“Less than four years ago, we set out an ambitious plan to Build Gigabit America, the digital infrastructure this country needs to thrive for generations to come,” said Nick Jeffery, President and CEO of Frontier. “Today’s announcement is recognition of our progress building a best-in-class fiber network and delivering reliable, high-speed broadband to millions of customers across the country. It’s also a vote of confidence for the future of fiber. I am confident that this delivers a significant and certain cash premium to Frontier’s shareholders, while creating exciting new opportunities for our employees and expanding access to reliable connectivity for more Americans.”
Verizon says it expects to realize at least $500 million in run-rate cost synergies by year three from benefits of increased scale and distribution and network integration resulting from the acquisition of Frontier.
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