Verizon to Purchase Frontier for $20 Billion, Increase Fiber Footprint

Competing fiber web service suppliers Verizon and Frontier introduced Thursday that the 2 have entered a definitive settlement through which Verizon will purchase Frontier Communications. The all-cash transaction, anticipated to shut in roughly 18 months pending regulatory and Frontier shareholder approval, is valued at $20 billion.

Submit-close, Verizon’s fiber attain and subscriber base will enhance considerably. Frontier Fiber at the moment boasts roughly 2.2 million subscribers from 7.2 million areas throughout 25 states, with plans to broaden to 10 million areas by 2026. Upon acquisition, Frontier’s subscribers and buyer attain will be a part of Verizon’s 7.4 million connections all through 9 states and Washington, DC.

In a press launch from Verizon asserting the settlement, CEO Hans Vestberg notes, “The acquisition of Frontier is a strategic match. It’s going to construct on Verizon’s 20 years of management on the forefront of fiber and is a chance to turn out to be extra aggressive in additional markets all through the US, enhancing our means to ship premium choices to hundreds of thousands extra clients throughout a mixed fiber community.”

Two main fiber networks mixed

With the acquisition of Frontier’s networks, Verizon will make a big leap in fiber protection, doubtlessly matching or surpassing that of rival ISP AT&T Fiber. At present, Verizon Fios is basically restricted to the Mid-Atlantic and Northeast. 

Verizon’s fiber attain will enhance within the Northeast, notably within the states of Connecticut, Pennsylvania and New York. New Fios service areas will primarily middle across the Midwest, although protection will attain as far west as California and south into Texas and Florida — areas the place Verizon had beforehand bought web networks to Frontier in 2016.

Frontier beforehand operated within the Northwest as properly however in 2020 bought its regional protection in Idaho, Montana, Oregon and Washington to new ISP Ziply Fiber.

What does this imply for Verizon and Frontier clients?

Nothing but, however Verizon indicated an “speedy integration post-close with Verizon’s best-in-class choices,” which can have an effect on present and future Frontier Fiber clients. 

Frontier Fiber and Verizon Fios plans differ in speeds and pricing. Most notably, Frontier Fiber typically has decrease charges on comparable speeds, plus quicker max speeds with 5Gbps and 7Gbps plans obtainable throughout your entire fiber footprint. Verizon’s quickest Fios velocity tier tops out at 2.3Gbps.

Moreover, the transition from Frontier Fiber to Verizon Fios will doubtlessly convey Frontier clients new TV and cell bundle choices not at the moment obtainable. 

It’s unclear what speeds, pricing and bundle choices Frontier clients can anticipate following the acquisition. Frontier didn’t instantly reply to a request for remark, however CNET will proceed to replace this submit as extra particulars turn out to be obtainable.