Verizon to Buy Frontier for $20 Billion, Expand Fiber Footprint

Competing fiber internet service providers Verizon And Border Verizon announced Thursday that it has entered into a definitive agreement to acquire Frontier Communications. The all-cash transaction, which is expected to close in about 18 months, pending regulatory and Frontier shareholder approval, is valued at $20 billion.

After the closing, Verizon’s fiber reach and subscriber base will increase significantly. Frontier Fiber currently has approximately 2.2 million subscribers from 7.2 million locations in 25 states and plans to expand to 10 million locations by 2026. Following the acquisition, Frontier’s subscribers and customer reach will join Verizon’s 7.4 million connections in nine states, Washington, D.C..

In one Press release from Verizon “The acquisition of Frontier is a strategic fit,” said CEO Hans Vestberg, announcing the deal. “It will build on Verizon’s two decades of leadership in fiber and provide an opportunity to become more competitive in more markets across the United States, expanding our ability to deliver premium offerings to millions of customers over our combined fiber network.”

Two major fiber networks combined

With the acquisition of Frontier’s networks, Verizon will make a significant leap in fiber coverage, potentially equaling or surpassing that of rival ISP AT&T Fiber. Right now, Verizon Fios is largely limited to the Mid-Atlantic and Northeast.

Verizon’s fiber reach will increase in the Northeast, especially in the states. Connecticut, Pennsylvania And new YorkNew Fios service areas will be primarily concentrated in the Midwest, but coverage will extend west California and southward Texas And Florida — Locations where Verizon previously sold its internet network to Frontier in 2016.

Frontier previously operated in the Northwest but sold its regional footprint in 2020 Idaho, Montana, Oregon And Washington to new ISP Zippered Fiber.

What does this mean for Verizon and Frontier customers?

Nothing yet, but Verizon has stated that there will be “integration with Verizon’s best-in-class offerings immediately post-closing,” which could impact current and future Frontier Fiber customers.

Frontier Fiber and Verizon Fios plans differ in terms of speed and pricing. Most notably, Frontier Fiber generally has lower rates for comparable speeds, plus faster maximum speeds with 5Gbps and 7Gbps plans available across its entire fiber footprint. Verizon’s fastest Fios speed tier tops out at 2.3Gbps.

Additionally, the move from Frontier Fiber to Verizon Fios could offer Frontier customers new TV and mobile package options that aren’t currently available.

It’s unclear what speeds, pricing, and package options Frontier customers can expect after purchasing. Frontier did not immediately respond to a request for comment, but CNET will continue to update this post as more details become available.