Tech Desk
Sep 06, 2024
Verizon is all set to purchase fiber internet provider Frontier Communications for $20 billion to expand its fiber network and integrate it within its mobile services.
The fiber internet service provider announced the all-cash deal between the internet service providers, marking an agreement where Verizon will acquire Frontier Communications.
This deal is anticipated to finalise in approximately 18 months, pending regulatory and Frontier shareholder approval, expanding its reach with 25 million units across 31 states.
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The Frontier Fiber currently boasts approximately 2.2 million subscribers from 7.2 million locations across 25 states and has plans to expand to 10 million locations by 2026.
Verizon’s CEO Hans Vestberg stated, “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 the ability to deliver premium offerings to millions more customers across a combined fiber network.”
Following the deal, Frontier’s subscribers and customer reach will join Verizon’s 7.4 million connections throughout nine states and Washington, DC.
However, with the acquisition of Frontier’s networks, Verizon will make a significant leap in fiber coverage, potentially surpassing its rival ISP AT&T.
Currently, Verizon Fios is limited to the Mid-Atlantic and Northeast. With the deal, the internet service provider will spread to the Northeast, particularly in the states of Pennsylvania, New York, and Connecticut.
The new Fios service areas will primarily center around the Midwest, with the coverage reaching as far west as California and south into Texas and Florida.
Previously, Frontier operated in the Northwest; however, in 2020 sold its regional coverage in Idaho, Montana, Oregon, and Washington to a new ISP Ziply Fiber.
Additionally, by transitioning from Frontier Fiber to Verizon Fios will potentially bring Frontier users new TV and mobile bundle options that are currently not available.
