Verizon is doubling down on the fiber broadband business, striking a deal to acquire Frontier for $20 billion in cash.
Frontier has about 2.2 million fiber internet customers across 25 states, which will join with Verizon’s 7.4 million fiber connections in nine states and Washington DC. The company also says it will follow through on plans to build out another 2.8 million fiber locations by the end of 2026.
Verizon has focused its fiber efforts in the northeastern U.S., with fiber buildout spanning Virginia up through Massachusetts. Frontier fills in some of those gaps, with buildout in Connecticut, as well as parts of New York and Pennsylvania. The company also built out giber in Texas, California, West Virginia, Illinois, Ohio and other states were Verizon does not have a fiber presence.
“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.”
“The acquisition of Frontier is a strategic fit,” he continued. “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 our ability to deliver premium offerings to millions more customers across a combined fiber network.”
“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,” added 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.”
