Verizon has run a fiber internet service since all the way back in 2005, reaching most of the northeast part of the US. Verizon really wants to expand their reach, so the company has decided to make a huge investment by purchasing another major fiber player, Frontier.
Verizon has announced that it has entered an agreement to acquire Frontier Communications in an all-cash transaction valued at $20 billion. This move will significantly expand Verizon’s fiber footprint across the U.S.
In layman’s terms, what this acquisition means is that Verizon is about to expand its fiber’s reach a lot by integrating Frontier’s existing infrastructure. Frontier’s 2.2 million fiber subscribers across 25 states will join Verizon’s approximately 7.4 million Fios connections. Additionally, Frontier has committed to building an additional 2.8 million fiber locations by the end of 2026.
It will also allow Verizon to enter regions it wasn’t present in. Most of Verizon’s infrastructure was located in the northeast part of the country, while Frontier has deployed fiber in the south, including California and Texas. It’s far from nationwide, but it’s certainly getting there.
Frontier customers will gain access to Verizon’s premium mobility, home internet, streaming, and connected home offerings, while the combined network will create “a market-leading broadband infrastructure with superior scale and distribution”.
Under the terms of the agreement, Verizon will acquire Frontier for $38.50 per share in cash. The transaction has been unanimously approved by both companies’ Boards of Directors and is expected to close in approximately 18 months, subject to regulatory approvals and other customary closing conditions.
Once it’s all done and wrapped up, however, we’ll likely have another announcement confirming the merger, as well as any details of interest you might want to be aware about.
