Verizon acquires Frontier for $20 billion, expands fiber reach

Rival fiber-optic internet service providers Verizon and Frontier announced Thursday that they have entered into a definitive agreement under which Verizon will acquire Frontier Communications. The all-cash transaction, which is expected to close in about 18 months, pending approval by regulators and Frontier shareholders, is valued at $20 billion.

Following the closing, Verizon’s fiber footprint and subscriber base will grow significantly. Frontier Fiber currently boasts about 2.2 million subscribers from 7.2 million locations in 25 states, and plans to expand that number to 10 million locations by 2026. Following the acquisition, Frontier’s subscribers and customer footprint will join Verizon’s 7.4 million connections in nine states and Washington, DC.

In Verizon’s press release announcing the deal, CEO Hans Vestberg notes, “The acquisition of Frontier is a strategic fit. It builds on Verizon’s two decades of leadership at the forefront of fiber and provides an opportunity to become more competitive in more markets across the United States, enhancing our ability to deliver premium offerings to millions of customers on a combined fiber network.”

Connection of two major fiber optic networks

With the acquisition of Frontier, Verizon will make a significant leap in fiber coverage, potentially matching or exceeding the coverage of rival ISP AT&T Fiber. Currently, Verizon Fios is largely limited to the Mid-Atlantic and Northeast regions.

Verizon’s fiber footprint will expand across the Northeast, especially in the states Connecticut, Pennsylvania and New York. New Fios’ service areas will be primarily focused on the Midwest, although coverage will also extend west to California and south to Texas and Florida – places where Verizon previously sold internet networks to Frontier in 2016.

Frontier previously also operated in the Northwest, but sold its regional footprint in 2020 Idaho, Montana, Oregon AND Washington to a new internet service provider Ziply Fiber.

What does this mean for Verizon and Frontier customers?

Nothing yet, but Verizon did announce “immediate post-close integration with Verizon’s best-in-class offerings,” which could impact current and future Frontier Fiber customers.

Frontier Fiber and Verizon Fios plans differ in speeds and pricing. For one, Frontier Fiber tends to have lower rates for comparable speeds, as well as faster maximum speeds, with 5Gbps and 7Gbps plans available throughout its fiber footprint. Verizon’s Fios speed tier tops out at 2.3Gbps.

Additionally, the transition from Frontier Fiber to Verizon Fios will potentially provide Frontier customers with new TV and mobile service package options that are not currently available.

It’s unclear what speeds, prices, and packages Frontier customers can expect following the acquisition. Frontier did not immediately respond to a request for comment, but CNET will continue to update this post as new details emerge.