A $20 billion all-cash deal to purchase Frontier Communications Parent has been officially announced by Verizon Communications. By incorporating Frontier's vast fiber network into its current portfolio, which includes its well-known Fios offering, this strategic purchase would strengthen Verizon's position as a top supplier of fiber internet services in the United States. The deal is anticipated to greatly extend Verizon's fiber footprint and speed up its supply of premium internet and mobility services, given that Frontier has 2.2 million fiber users and intends to add 2.8 million sites by 2026.
As a prominent participant in the fiber internet market, Frontier Communications has upgraded its network over the last four years with investments totaling $4.1 billion, and as a result, more than half of its income currently comes from fiber-related goods. The acquisition is in line with Verizon's long-term plan to improve customer relationships and increase its broadband market share, according to Hans Vestberg, the company's chairman and CEO. After receiving unanimous approval from the boards of both firms, the deal is anticipated to be completed in about 18 months, subject to shareholder and regulatory clearances.
