Verizon announced today that it is acquiring fiber network provider Frontier Communications in an all-cash transaction valued at $20 billion. Frontier—which emerged from bankruptcy in 2021—is the largest pure-play fiber internet provider in the U.S. and adding it to Verizon’s portfolio will significantly expand Verizon's fiber footprint across the nation, “accelerating the company’s delivery of premium mobility and broadband services to current and new customers” and “expand Verizon's intelligent edge network for digital innovations like AI and IoT,” Verizon said.

Verizon plans to integrate Frontier’s fiber network into Verizon's fiber and wireless assets, including its Fios network. Over approximately four years, Frontier has invested $4.1 billion upgrading and expanding its fiber network, and now derives more than 50% of its revenue from fiber products. Frontier’s 2.2 million fiber subscribers across 25 states will join Verizon’s approximately 7.4 million Fios connections in nine states and Washington, D.C. In addition to Frontier’s 7.2 million fiber locations, the company says it plans to build out an additional 2.8 million fiber locations by the end of 2026.

“Connectivity is essential in nearly every part of our lives and work, and no one delivers better than Verizon,” said Verizon Chairman and CEO Hans Vestberg. “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.”

Vestberg added: “The acquisition of Frontier is a strategic fit. It will build on Verizon’s two decades of leadership at the forefront of fiber and is an opportunity to become more competitive in more markets throughout the United States, enhancing our ability to deliver premium offerings to millions more customers across a combined fiber network.”

“Less than four years ago, we set out an ambitious plan to Build Gigabit America, the digital infrastructure this country needs to thrive for generations to come,” said Nick Jeffery, President and CEO of Frontier. “Today’s announcement is recognition of our progress building a best-in-class fiber network and delivering reliable, high-speed broadband to millions of customers across the country. It’s also a vote of confidence for the future of fiber. I am confident that this delivers a significant and certain cash premium to Frontier’s shareholders, while creating exciting new opportunities for our employees and expanding access to reliable connectivity for more Americans.”

Verizon says it expects to realize at least $500 million in run-rate cost synergies by year three from benefits of increased scale and distribution and network integration resulting from the acquisition of Frontier.

NEW YORK—Verizon has shared its second quarter 2020 financial report, which shows that it loss 81,000 Verizon Fios TV subscribers, in large part due to the shift from traditional linear video to OTT offerings, the company says.

According to TVT’s sister publication Next|TV, Verizon Fios TV at one point had more than 5 million subscribers. As of this most recent financial report, the service’s number of subscribers has now fallen below 4 million.

It is an industry wide trend as more and more consumers cut the cord to traditional services. AT&T reported earlier this week that it had lost 886,000 traditional pay-TV subscribers, while its new HBO Max streaming service was growing. Also, a new study from Roku reported that 32% of U.S. TV homes no longer have a traditional pay-TV service.

Despite this, Verizon overall actually beat consensus revenue forecasts, totaling $30.45 billion in sales. This was helped by increases in postpaid wireless customers and those using Verizon’s 5G wireless service. In addition, Fios high-speed internet continues to grow.

Verizon has been attempting to draw customers in recent months by offering free, year-long subscriptions to new streaming services like Disney+ and the vMVPD YouTube TV.

For more information, visit Verizon’s website. 

NEW YORK & BURBANK, Calif.—Certain Verizon customers will get to enjoy some of the magic of Disney for free after the company announced a partnership with the Mouse House that will provide its new Disney+ streaming service for free for a year.

All Verizon wireless unlimited customers, new Fios Home Internet and 5G Home Internet customers will get 12 months of Disney+, which is set to launch on Nov. 12.

“The launch of Disney+ kicks off a new era of streaming for The Walt Disney Company, bringing nearly a century’s worth of content from our iconic studios to consumers directly,” said Kevin Mayer, chairman, direct-to-consumer & international, at Disney. “We’re excited to share this moment with Verizon and bring Disney+ to the millions of customers across its award-winning wireless network.”

When the Disney+ platform launches, the eligible Verizon customers can activate their subscriptions and stream from mobile and connected TV devices, including gaming consoles, streaming media players and smart TVs. More information is available at verizon.com/disneyplus.

The Disney+ service will feature movies and shows from Disney, Pixar, Marvel, “Star Wars” and National Geographic, including classics and original programming like “The Mandalorian” and “Lady and the Tramp.”

MCLEAN, VA–Station group Tegna announced late Thursday that it has reached a multi-year carriage agreement with Verizon, which dropped three of Tegna’s stations from its FiOS lineup on New Year’s Eve.

Financial details and length of agreement were not disclosed.

WUSA in Washington, D.C., WVEC in Norfolk, VA and WGRZ in Buffalo, NY will return to the Verizon lineup effective immediately, Tegna said.

Tegna-owned TV stations in three markets have gone dark on Verizon’s FiOS TV service as a dispute over retransmission fees continued into the new year. Norfolk, Va. ABC affiliate WVEC, DC CBS affiliate WUSA and Buffalo’s NBC affiliate WGRZ were all pulled from the FiOS lineup on Dec 31, 2018.

In a notice to subscribers, Verizon accused Tegna of proposing a significant rate increase for these stations. “The rising cost of programming is the single biggest factor in higher TV bills, and we are standing up to broadcasters like Tegna in order to protect you from rate increases,” Verizon said. “Rest assured, our goal is to reach a fair agreement that is in your best interest and allows you to continue to have access to the stations you enjoy today.”

In response Tegna said it has “worked hard to reach a fair, market-based agreement with Verizon” adding that it had “successfully reached hundreds of deals with cable and satellite providers across the country with no disruption of service, so we are disappointed we could not reach a deal with Verizon.

“We remain hopeful this will get resolved quickly. However, Verizon customers should know our channels remain available on every other service provider in their community as well as many over-the-top (OTT) providers, who offer instant access when viewers sign up,” Tegna continued. “Our station’s high-quality news, sports, weather and entertainment programming is also available for free over-the-air and viewers can continue watching our newscasts live on our stations’ apps.”