Verizon to acquire Frontier Communications for $20 billion.
Leading telecommunications firm Verizon plans to acquire Frontier Communications in a $20bn deal with the purpose of pushing fiber across America. It is believed that this acquisition will create additional 2. 2 million fibre consumers from Frontier to expand Verizon’s fibre service extend to around 10 million consumers in 31 states include Washington, D. C. As a result, Verizon can reinforce its fibre network and advance its challenge to key telecommunications competitors such as AT&T.
Frontier, which has ramped up its fiber infrastructure spending in the last few years, will strengthen Verizon’s 7. 4 million Fios connections. Verizon might go ahead to leverage this acquisition to more connections with hopes of delivering the fiber connections to an extra 2. It was predicted that there will be 8 Million locations by 2026.
The transaction would also help Verizon in initiatives involving other emerging technologies including artificial intelligence and the Internet of Things besides improving on its premium customer services. Urgent Financial Problems Frontier had an urgent financial problem which leaded the company to the Chapter 11 bankruptcy in 2020 and some legal problems in connection with internet speed claims.
A cash and stock deal of the merger anticipated to be complete within the next one and half years with Frontier shareholder approval and certain regulatory consent.
