Verizon Communications is to acquire Frontier Communications for $20 billion in cash. Gaining the largest pure-play fibre internet provider in the United States will expand the fibre footprint of Verizon across the country, adding 2.2 million subscribers to around 7.4 million Verizon Fios connections, with fibre networks passing over 25 million premises. The deal marks a further turn in the history of Frontier.
Hans Vestberg, the chief executive of Verizon, said: “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.”
Nick Jeffery, the chief executive of Frontier, added: “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.”
Verizon is one of the original fibre players, celebrating 20 years of its Fios network. The acquisition is expected to close in around 18 months, subject to regulatory approval.
Verizon Fios internet had 7.05 million consumer subscribers at the middle of 2024. It had 2.82 million Fios video subscribers, but that number was down on 3.09 million a year before and a peak of 5.86 million in 2016.
Over the last four years,Frontier has invested over $4 billion upgrading and expanding its fibre network, and now derives more than half its revenue from fibre products. The 2.2 million Frontier fibre subscribers across 25 states will join Verizon’s approximately 7.4 million Fios connections in 9 states and Washington, DC.
In 2009, Verizon sold 4.8 million legacy access lines to Frontier for stock valued at $8.6 billion, tripling the customer base of Frontier. In 2016, Verizon sold its internet, television and landline business in Florida, Texas, and California to Frontier for $10.5 billion, in a deal that further doubled the size of Frontier. In April 2020, Frontier filed for bankruptcy protection, emerging from a restructuring plan a year later, wiping out equity holders and eliminating $11 billion in debt before going public again.