In a major move aimed at solidifying its leadership in the 5G and broadband space, Verizon Communications announced today it has entered into a definitive agreement to acquire Frontier Communications Parent, Inc. in an all-cash transaction valued at a staggering $20 billion. The strategic move will significantly expand Verizon’s fiber network footprint across the United States, empowering the company to deliver premium mobility and broadband services to a broader customer base while also fueling its advancements in cutting-edge technologies like AI and IoT.
The acquisition brings together Frontier’s fiber network with Verizon’s fiber and wireless assets, including its Fios offering. Frontier has been aggressively investing in its fiber infrastructure, with over $4.1 billion spent in recent years to upgrade and expand its network. This dedication to fiber has resulted in over 50% of its revenue now stemming from fiber products, serving a customer base of 2.2 million fiber subscribers across 25 states.
“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.”
“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.”
With this acquisition, Verizon’s Fios connections will jump from approximately 7.4 million to add Frontier’s 2.2 million fiber subscribers, expanding its reach to 34 states and Washington, D.C. Furthermore, Frontier is committed to building out an additional 2.8 million fiber locations by 2026, presenting even more growth opportunities for Verizon’s network reach.