Verizon Acquires Frontier Communications in $20 Billion Fiber Deal

Verizon, the leading communications company, announced on Thursday that it has entered into a definitive agreement to acquire Frontier Communications in an all-cash transaction valued at $20 billion. This strategic move aims to significantly enhance Verizon’s fiber presence across the nation and bolster the delivery of premium mobility and broadband services to both current and new customers.

The deal will integrate Frontier’s fiber network into Verizon’s existing portfolio, which already includes its well-known Fios service. Frontier serves approximately 2.2 million subscribers in 25 states, while Verizon boasts around 7.4 million Fios connections across nine states and Washington, D.C. With Frontier’s commitment to expand its fiber locations by an additional 2.8 million by the end of 2026, it will increase its total to 7.2 million fiber locations.

As a result, the two companies together will serve roughly 10 million combined fiber customers across 31 states, including Washington, D.C. According to Verizon executives, this combination will create 25 million fiber passings, which refers to the potential customer locations that a fiber network can reach. For context, AT&T currently has about 28 million such locations.

Verizon anticipates that Frontier’s customers will gain access to more options, including Verizon’s mobile services, home internet, streaming, and connected home offerings. The acquisition is poised to enhance Verizon’s existing fiber network, which is primarily concentrated in the Northeast and mid-Atlantic regions, by tapping into Frontier’s reach in various states, including the Midwest, Texas, and California.

Hans Vestberg, Verizon’s Chairman and CEO, expressed optimism about the acquisition, stating, “The acquisition of Frontier is a strategic fit. 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.”

In terms of financial specifics, Verizon will purchase Frontier at a rate of $38.50 per share in cash, culminating in an overall transaction value of approximately $20 billion. This arrangement has received unanimous approval from both the Verizon and Frontier Boards of Directors.

The deal is expected to close within approximately 18 months, pending approval from Frontier shareholders and certain regulatory bodies. The upcoming integration of these two companies signifies a major shift in the landscape of fiber communications in the United States, potentially reshaping market dynamics and customer choices.

As both companies prepare for this significant change, customers can look forward to an expanded range of services and improved connectivity options as the integration process unfolds.