Verizon Communications and Frontier Communications have announced a definitive agreement for Verizon to acquire Frontier in an all-cash deal valued at $20 billion. This strategic acquisition of Frontier, the largest pure-play fibre internet provider in the US, will significantly bolster Verizon’s national fibre network, accelerating the delivery of its premium broadband and mobility services to existing and new customers. The move will also enhance Verizon’s intelligent edge network, further supporting the development of digital technologies such as AI and IoT.
The merger will see Frontier’s advanced fibre network integrated into Verizon’s already extensive portfolio of fibre and wireless assets, including its flagship Fios service. Over the past four years, Frontier has invested $4.1 billion in upgrading and expanding its fibre infrastructure, now generating more than half of its revenue from fibre products. Frontier’s 2.2 million fibre customers across 25 states will be added to Verizon’s existing 7.4 million Fios connections across nine states and Washington, D.C. Frontier currently has 7.2 million fibre locations and plans to extend this by an additional 2.8 million locations by the end of 2026.
“Connectivity is essential in nearly every part of our lives and work, and no one delivers better than Verizon,” said Hans Vestberg, Chairman and CEO, Verizon. “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. It will build on Verizon’s two decades of leadership at the forefront of fibre 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 fibre network,” added Vestberg.
“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 fibre 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 fibre. 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.”
Strategic benefits:
- Enhanced service offerings: Verizon will extend its premium mobility, home internet, streaming, and connected home services to Frontier’s consumer and small business customers. Frontier users and those previously outside Verizon’s fibre network will benefit from greater access to these offerings, alongside Verizon’s business products such as Verizon Business Complete
- Market-leading broadband network: Frontier’s consumer fibre network, one of the largest and fastest-growing in the US, will be seamlessly integrated into Verizon’s award-winning Fios network. Both companies serve around 10 million fibre customers across 31 states and Washington D.C., with a combined fibre infrastructure passing over 25 million premises
- Combining broadband and mobile services: Uniting Frontier’s broadband offering with Verizon’s mobile services is expected to enhance customer loyalty and reduce churn by approximately 50% for postpaid mobility, improving Verizon’s mobile business
- Expanding market presence: Verizon will gain access to Frontier’s high-quality customer base in regions that complement Verizon’s core markets in the Northeast and Mid-Atlantic. Frontier’s footprint offers considerable potential for further expansion of both fibre and mobility services, with Verizon well positioned to take advantage of this opportunity through its existing stores in these areas
- Aligned with Verizon’s strategic vision: The acquisition aligns with Verizon’s long-term strategy of expanding and strengthening customer relationships, building on its two decades of leadership in fibre technology. This transaction is expected to increase Verizon’s share of the national broadband market
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