News

Verizon’s acquisition of Frontier, if approved by federal regulators, will drastically shake up the broadband market in the United States.

By: Brad Randall, Broadband Communities

Verizon has announced an agreement to purchase Frontier, the largest “pure-play” fiber provider in the United States.

The deal, if given regulatory approval, would drastically increase Verizon’s footprint.

Currently, Frontier serves over 2.2 million fiber subscribers across 25 states, according to Verizon’s announcement.

Verizon currently serves 7.4 million customers with Fios across nine states and Washington D.C., the company’s release stated.

If approved, the deal would give Verizon over 25 million fiber passings across 31 states, according to Verizon.

“The acquisition of Frontier is a strategic fit,” said Verizon Chairman and CEO Hans Vestberg, in comments released to the media Thursday.

Vestberg said the acquisition would build on Verizon decades of leadership “and is an opportunity to become more competitive in more markets throughout the United States.”

Verizon’s CEO also said the deal would enhance Verizon’s ability to deliver premium offerings to millions more customers across a combined fiber network.

Over the past several years, Frontier has invested over $4 billion into network upgrades and fiber expansions.

According to Verizon’s announcement, Frontier has planned to build out to 2.8 million fiber locations by 2027.

The transaction to acquire Frontier will be an “all-cash transaction” worth $20 billion, Verizon’s release said.

Nick Jeffery, President and CEO of Frontier, also commented on the news.

“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,” he said. “It’s also a vote of confidence for the future of fiber.”

If all goes according to plan, the deal will close in 18 months, Verizon’s announcement stated.

To get content like this delivered to your inbox, subscribe to the Broadband Communities newsletter.