Verizon is reportedly close to finalizing a deal to acquire fiber provider Frontier Communications, with an announcement potentially coming this week according to The Wall Street Journal. Frontier, valued at over $7 billion, offers broadband services to around three million locations across 25 states and would help Verizon strengthen its Fios fiber network in order to better compete with AT&T. As Verizon looks to invest in fiber as a growth area amidst slowing wireless revenue, acquiring companies with existing infrastructure like Frontier could be a more cost-effective and efficient strategy than building out its own network. Based in Dallas, Frontier is currently transitioning its copper landline system to fiber, allowing the company to offer a 5Gbps symmetrical plan. Despite filing for Chapter 11 bankruptcy in 2020 and running into financial concerns, Frontier faced a lawsuit from the FTC in 2021 for misrepresenting internet speeds, resulting in a settlement requiring the company to cease false advertising, pay out over $8.5 million, and install fiber service in 60,000 California homes over four years.
