Verizon is reportedly close to a deal to buy fiber provider Frontier Communications. On Wednesday, The Wall Street Journal saying that an announcement could come as early as this week, provided that discussions do not “hit any last-minute stumbling blocks.”
Frontier has a market value of more than $7 billion and provides broadband to about three million locations in 25 states. The venture would help Verizon boost its Fios fiber network and better compete with AT&T. The carrier has seen slowing wireless revenue and sees investment in fiber as an area of growth. Acquiring companies with existing infrastructure, such as Frontier, is potentially less expensive and time-consuming than rolling out its own network.
Dallas-based Frontier is currently upgrading its landline system from copper to fiber, which will allow it to offer a symmetrical 5 Gbps plan. The company filed for Chapter 11 bankruptcy in 2020. It became a “more agile business” as WSJ newspaper describes, before running into concerns that it would run out of money before finishing its current upgrades.
The FTC sued the company in 2021 for misrepresenting its speeds. Under a 2022 settlement, Frontier was requested to stop lying about the performance of its Internet, distribute more than $8.5 million and install fiber service in 60,000 California homes over four years.
