Bryan/College Station to Welcome Verizon Customers Again
Officials from both Verizon and Frontier Communications have recently announced an impending business transaction. Verizon will purchase Frontier in a whopping $20 billion dollar deal, encompassing 25 US states. The transaction is projected to take around 18 months to finalize. In 2015, Frontier shelled out $10.5 billion to purchase Verizon’s operations in several areas, including Bryan/College Station, California, and Florida.
Verizon’s Strategic Acquisition
The definitive agreement signed by Verizon Communications Inc. and Frontier Communications Parent, Inc. states that the former would acquire the latter in an all-cash transaction worth $20 billion. As the largest fiber internet provider in the US, Verizon aims to significantly expand its fiber footprint with this strategic acquisition.
With this merger, Frontier’s cutting-edge fiber network will be integrated into Verizon’s extensive portfolio. This includes its best-in-class Fios offering and its intelligent edge network designed for digital innovations such as AI and IoT. Over the past four years, Frontier has invested $4.1 billion into upgrading and expanding its fiber network.
Customer and Strategic Benefits
The acquisition promises significant customer and strategic benefits, extending key features such as premium mobility, home internet, streaming, and connected home offerings to Frontier’s consumer base. Verizon anticipates that the integration will drastically improve the current offerings for both Verizon and Frontier’s 10 million combined fiber customers.
Verizon Chairman and CEO Hans Vestberg expressed his confidence in the acquisition as a strategic fit, stating, “Verizon offers more choice, flexibility and value, and we continuously look for ways to provide the best product and network experience to our customers as we bolster our position as the provider of choice.”
Financial Benefits
Verizon expects the acquisition to drive significant cost synergies, with an estimated $500 million in revenue and adjusted EBITDA growth rates upon closing. The transaction is not expected to affect Verizon’s financial strength or flexibility and will align with the company’s strategic plan of growing and strengthening customer relationships.
Verizon has affirmed financial guidance for the full year of 2024, projecting total wireless service revenue growth of 2.0 – 3.5% and capital expenditures between $17.0 billion and $17.5 billion.
