Verizon is reportedly negotiating the acquisition of Frontier. Less than a decade ago, Frontier acquired Verizon’s voice, video, and Fios wireline internet operations across three American states.
Is Verizon buying back its wireline business?
Reports from The Wall Street Journal and Bloomberg suggest Verizon is in “advanced talks” to acquire Frontier. The American company is a communications service provider, which means it offers wireline or fiber internet services.
Neither Verizon nor Frontier has officially acknowledged any discussion about the acquisition. However, the aforementioned reports suggest an announcement may come forth as early as this week.
Circle of life, Wall Street version:
1. Verizon sells Fios lines to Frontier
2. Frontier goes bankrupt
3. Verizon holds talks to take Frontier backhttps://t.co/fNIixpKB6Y— Drew FitzGerald (@DrewFitzGerald) September 4, 2024
Frontier has had a rollercoaster ride in the past decade. The flourishing company had acquired Verizon’s wireline operations. The acquisition includes Verizon’s Fios fiber internet connections in three states. Back then, the deal was valued at $10.5 billion.
Fast-forward to 2020, Frontier filed for bankruptcy. Some of the reasons why the company filed for Chapter 11 included its inability to service debt, manage legacy networks, and network neglect.
Although the situation seemed bleak, Frontier managed to bounce back. Barely a year after filing for bankruptcy, the company announced plans to expand its fiber connections.
Why is Verizon eyeing Frontier?
Frontier is currently active in 25 states in America. It offers a variety of plans suitable for a wide range of customers. According to its website, Frontier can offer a dedicated fiber line wired internet connection with a bandwidth of up to 7Gbps.
What this essentially means is that Frontier has not only managed to claw its way out of financial troubles, but it has managed to sustain its operations and grow. However, Verizon could be eyeing its past Fios fiber customers, and perhaps Frontier’s physical operations equipment, and even its employees.
Some ten years ago, @Verizon sold my city’s Internet/Cable contract to @FrontierCorp. Today, the @WSJ reports that Verizon is in advanced talks to acquire Frontier.
— Phil Hulett (@philhulett) September 4, 2024
Across America, telecom and internet service providers are doubling down on wired internet service operations. AT&T is aggressively expanding its fiber internet operations. T-Mobile, on the other hand, is taking the inorganic expansion route. Recent reports confirm T-Mobile is trying to acquire fiber internet provider Metronet. Hence, it makes business sense for Verizon to regain the wireline business it had sold to Frontier.
2024-09-05 15:08:52