Verizon is reportedly close to a deal to buy fiber-optic provider Frontier Communications, and the Wall Street Journal reported Wednesday that an announcement could come as soon as this week “if the talks don’t hit any last-minute snags.”
Frontier has a market capitalization of more than $7 billion and provides broadband to about 3 million sites in 25 states. The company will help Verizon bolster its Fios fiber network, making it more competitive with AT&T. The company has faced slowing wireless revenues and sees fiber investments as a growth area. Buying a company with existing infrastructure, like Frontier, can be less costly and time-consuming than rolling out its own network.
Dallas-based Frontier is currently upgrading its copper fixed-line system to fiber optics, which will allow it to offer symmetrical 5Gbps plans. The company filed for Chapter 11 bankruptcy protection in 2020. As the WSJ put it, the company pivoted to a “lean business,” but faced concerns that it would run out of cash before completing its current upgrades.
The FTC sued the company in 2021, accusing it of misrepresenting speeds, and a 2022 settlement required Frontier to stop lying about its internet performance, pay more than $8.5 million, and install fiber optic service to 60,000 California homes over four years.
