Verizon looks to expand Fios with $20 billion purchase of Frontier

Verizon has entered an agreement to get the fibre net supplier Frontier successful an all-cash woody valued astatine $20 billion. In its press merchandise announcing the transaction, Verizon says the woody volition “significantly grow Verizon’s fibre footprint crossed the nation, accelerating the company’s transportation of premium mobility and broadband services to existent and caller customers.”

The woody with Frontier whitethorn assistance Verizon regain its aged Fios subscribers, aft immoderate of its wireline operations — including Fios fibre net connections — were purchased by Frontier successful 2015 for $10.5 billion. Frontier’s existing 2.2 cardinal fibre subscribers successful 25 states volition present articulation Verizon’s astir 7.4 cardinal Fios connections successful 9 states. Frontier presently has 7.2 cardinal fibre locations, and inactive plans to physique retired 2.8 cardinal much by the extremity of 2026.

“The acquisition of Frontier is simply a strategical fit,” said Verizon Chairman and CEO Hans Vestberg. “It volition physique connected Verizon’s 2 decades of enactment astatine the forefront of fibre and is an accidental to go much competitory successful much markets passim the United States, enhancing our quality to present premium offerings to millions much customers crossed a combined fibre network.”

As we said yesterday, this is an opportune infinitesimal for Verizon to get backmost into the fibre net concern following AT&T’s ain expansion and T-Mobile’s bid to get Metronet. Verizon says the transaction is expected to adjacent successful astir 18 months, taxable to immoderate closing conditions and regulatory approvals.