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.
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?
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.