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

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

The woody pinch Frontier whitethorn thief 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 will now subordinate Verizon’s astir 7.4 cardinal Fios connections successful 9 states. Frontier presently has 7.2 cardinal fibre locations, and still plans to build retired 2.8 cardinal much by nan extremity of 2026.

“The acquisition of Frontier is simply a strategical fit,” said Verizon Chairman and CEO Hans Vestberg. “It will build connected Verizon’s 2 decades of activity astatine nan forefront of fibre and is an opportunity to go much competitory successful much markets passim nan United States, enhancing our expertise to present premium offerings to millions much customers crossed a mixed fibre network.”

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