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Verizon He said Thursday The company announced that it has signed a definitive agreement to acquire Frontier, a leading fiber optic internet provider, for $20 billion in cash.
Frontier is Nearly 90 years old The telecommunications company filed for bankruptcy in 2020 with billions of dollars in debt. Frontier Coming out of bankruptcy in 2021 With a focus on fiber optics, the company has expanded its customer base to 2.2 million homes across 25 states after years of hard work and $4.1 billion in investments, and the company plans to add 2.8 million new fiber optic connection points by the end of 2026.
Verizon decided to acquire Frontier to better compete in the fiber optic internet market. As of April 2022AT&T Fiber and Crown Castle Fiber accounted for 12.17% and 11.59% of the U.S. market, respectively, while Verizon Fios had 10.74%.
Related: Broadband and fiber optics are the future, so what?
“The acquisition of Frontier is a strategic move,” said Verizon Chairman and CEO Hans Vestberg. In a statementHe added that the acquisition will enable Verizon “to deliver premium services to millions more customers over our integrated fiber optic network.”
Verizon Chairman and CEO Hans Vestberg. Photo by Drew Ungerer/Getty Images
The Frontier acquisition will expand Verizon’s fiber optic network to 10 million homes by 2026, up from about 7 million today.
Verizon expects to save at least $500 million a year after the acquisition.
The transaction has been unanimously approved by the boards of directors of both companies and is expected to close within approximately 18 months.
Related: Verizon agrees to $100 million settlement over secret commission allegations, but here’s how it’s going to be paid
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