Verizon is buying Frontier Communications in a $20 billion deal to strengthen its fiber network.
Verizon Communications Inc. said Thursday that the acquisition will also shore up its foray into artificial intelligence as well as connected smart devices.
Frontier has concentrated heavily on its fiber network capabilities over about four years, investing $4.1 billion upgrading and expanding its fiber network. It now gets more than half of its revenue from fiber products.
Lame. Frontier’s incompetent, but Verizon is pure evil. Bills will surely rise.
Also, Verizon sold it’s wireline assets to Frontier in 2016 and now is buying it back?
All part of the plan; frontier declared bankruptcy, got to restructure, lose a lot of its debt and less profitable arms(that are often essential like renegotiating union contracts, etc.). Now that all the dirty work is done, it helps Verizon’s books look better long term.
Isn’t capitalism without regulation or enforcement grand?
This is hilarious.
I’m living somewhere that, less than a decade ago, was sold to Frontier, built out FiOS network and all.
I guess that wasn’t the best idea, then, Verizon?
I guess that wasn’t the best idea, then, Verizon?
Might’ve been?
Not sure if it differs by state, but here, most of Frontier’s fiber build out was done with grant money. Much of that is replacing the old copper network they bought from Verizon that had been left to rot.
Basically, Verizon sold off assets it had neglected (with a few fiber areas to sweeten the deal, I guess?), taxpayers paid Frontier to fix them up, and Verizon is buying them back likely at a bargain (versus doing those upgrades themselves).
Ah I live somewhere that was already entirely fiber before Verizon sold it, so from that perspective, it seems super silly.
Though, I think Verizon has proven they’re more than capable of committing massive fraud with grant money without the need to sell off parts of their business to do so.
Same here in the Seattle area. My friend pushed for them to continue building it the fiber network but the Verizon CEO was sold on wireless being the future so they sold off all of their fiber network they had built out to Frontier. Frontier’s support was utter garbage.
Verizon has been trying Fios for decades now and I think I know one person that has it. Verizon is already a very very difficult company to deal with. Them buying Frontier will only make things worse.
Companies should not be allowed to acquire other companies if callers are on hold more than 5 minutes when trying to speak to a person at the acquiring company.
I’ve had FIOS for more than a decade. Service has been pretty much close to flawless. YMMV
If this means I’m going to have to deal with Verizon support I think I’d rather just have no Internet.
Verizon didn’t like spending money on its fiber network. Cellular had better margins. So they sold much of it to Frontier.
Now Frontier invested in the fiber, and is making money, so Verizon wants it back.
This is an example myopic management, with no long term vision. Share price should drop, but it’ll probably go up.
They sold much of their fiber lines to Frontier years ago…
