Verizon is going to buy Frontier for $20 billion, which will make their fibre network bigger.

Verizon bought Frontier Communications for $20 billion, which is a big step towards expanding its fibre network across the U.S. This deal, which comes after rumours that the two companies were talking, will make it easier for Verizon to compete with AT&T in the fibre market. Frontier has 2.2 million fibre users that Verizon will get as part of the deal. This will give Verizon access to about 10 million people in 31 states and Washington, DC.

Chairman and CEO of Verizon, Hans Vestberg, said, “This will build on Verizon’s two decades of leadership in fibre and increase our competitiveness in key markets.” He also said that the deal was important from a business point of view.

Frontier has had problems in the past few years and will file for Chapter 11 bankruptcy in 2020. After reorganising, the company worked on improving its fibre infrastructure, but it had money problems that made people worry about its ability to finish these improvements. Frontier had legal problems too. In 2021, the FTC sued the company for wrongly advertising internet speeds, and the company had to pay a $8.5 million fine.

Verizon wants to speed up its growth in the fibre market with this purchase. It will allow the company to speed up its fibre expansion and improve its services for millions of new users.