Verizon will buy Frontier for $20 billion to expand its fiber network
Verizon is acquiring Frontier for $20 billion, the provider announced one day after reports emerged that the two companies were in talks. The deal will expand Verizon’s fiber network across the United States, allowing it to better compete with its rival, AT&T. Frontier will add 2.2 million fiber subscribers in 25 states, extending Verizon’s reach to about 10 million customers in 31 states and Washington, DC. Verizon has experienced slowing revenue, and acquiring Frontier could give it the boost it needed in less time than it would take to expand its own network.
“The acquisition of Frontier is a strategic fit,” said Verizon Chairman and CEO Hans Vestberg in a statement. “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.”
Frontier has experienced a rocky few years. The company declared Chapter 11 bankruptcy in 2020 and pivoted to a “leaner business” but faced concerns about emptying its bank account before finishing ongoing upgrades. Furthermore, the FTC sued Frontier in 2021, claiming it misrepresented its actual speeds. The company had to pay over $8.5 million and remove all false information. This article originally appeared on Engadget at https://www.engadget.com/verizon-will-buy-frontier-for-20-billion-to-expand-its-fiber-network-114532971.html?src=rss
Verizon is acquiring Frontier for $20 billion, the provider announced one day after reports emerged that the two companies were in talks. The deal will expand Verizon’s fiber network across the United States, allowing it to better compete with its rival, AT&T. Frontier will add 2.2 million fiber subscribers in 25 states, extending Verizon’s reach to about 10 million customers in 31 states and Washington, DC. Verizon has experienced slowing revenue, and acquiring Frontier could give it the boost it needed in less time than it would take to expand its own network.
“The acquisition of Frontier is a strategic fit,” said Verizon Chairman and CEO Hans Vestberg in a statement. “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.”
Frontier has experienced a rocky few years. The company declared Chapter 11 bankruptcy in 2020 and pivoted to a “leaner business” but faced concerns about emptying its bank account before finishing ongoing upgrades. Furthermore, the FTC sued Frontier in 2021, claiming it misrepresented its actual speeds. The company had to pay over $8.5 million and remove all false information.
This article originally appeared on Engadget at https://www.engadget.com/verizon-will-buy-frontier-for-20-billion-to-expand-its-fiber-network-114532971.html?src=rss