Highlights:

  • Frontier offers internet, phone, and TV services across urban, suburban, and rural areas, mainly in the Midwest and Eastern U.S.
  • Fiber optic cable is a network cable composed of numerous glass fibers encased in insulation.

Recently, Verizon Communications Inc. acquired Frontier Communications Parent Inc., a fiber optic networking company, in a USD 20 billion all-cash transaction.

The Wall Street Journal recently broke the news of the upcoming deal, which both companies confirmed. Under the agreement, Verizon will acquire Frontier for USD 38.50 per share in cash.

“The acquisition of Frontier is a strategic fit. It will build on Verizon’s two decades of leadership at the forefront of fiber 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 fiber network,” said Chairman and Chief Executive of Verizon, Hans Vestberg.

Frontier delivers internet, phone, and TV services to customers in urban, suburban, and rural areas, with a primary focus on the Midwest and Eastern United States. Originally headquartered in Florida, the company offers top-tier fiber networks and has invested over USD 4.1 billion in upgrading and expanding its network and services. Recently, Frontier served more than 2.2 million subscribers across 25 states.

Fiber optic cable is a network cable made up of multiple glass strands encased in an insulated covering. It transmits light signals over long distances, enabling high-speed, high-bandwidth data communication and telecommunications. Unlike traditional copper cables, fiber optic cables offer significantly greater bandwidth over much longer distances, supporting the highest standards for internet, cable, and telephone services. This makes it the preferred option for those seeking to stream high-definition TV, play video games without lag, and enjoy fast, reliable connectivity.

Verizon currently operates an expansive fiber network covering nine states and Washington, DC, with 7.4 million connections. The company has expressed its commitment to further expanding this network by adding 2.8 million additional fiber locations by the end of 2026.

This acquisition will enable Verizon to better compete with rival AT and T Inc., which has been steadily expanding its fiber network across the U.S., including the addition of 170,000 new access points in California by the end of 2023. AT and T is said to have around 8.5 million fiber customers. By integrating Frontier’s fiber network, Verizon will increase its reach to approximately 9.4 million customers.

“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. Today’s announcement is recognition of our progress in building a best-in-class fiber network and delivering reliable, high-speed broadband to millions of customers across the country,” said Frontier CEO Nick Jeffery.

With approval from both Verizon and Frontier’s boards, the deal is expected to close within approximately 18 months, pending shareholder approval and regulatory requirements.