Frontier To Buy All Verizon Wired Customers in FL, TX and CA

Verizon and Frontier Communications have formally announced that Frontier is buying another massive chunk of Verizon's unwanted fixed-line network. According to a Frontier press release, the $10.5 billion deal will involve Frontier acquiring all of Verizon's residential, commercial and wholesale customers in California, Florida and Texas. According to the companies, the acquired assets will include 3.7 million voice connections, 2.2 million broadband connections, and 1.2 million FiOS connections.

Assuming regulators sign off on the deal, the transaction is expected to close sometime in the first half of 2016. According to Verizon, the acquired assets generated $5.7 billion for Verizon last year, and the company spent $7 billion on FiOS upgrades in the acquired territories.

"This transaction marks a natural evolution for our company and leverages our proven skills and established track record from previous integrations," insists Frontier CEO Maggie Wilderotter.

"These properties are a great fit for Frontier and will strengthen our presence in competitive suburban markets and accelerate our recent market share gains. We look forward to realizing the benefits this transaction will bring to our shareholders, customers and employees."

Frontier spent $8.5 billion to acquire a large portion of Verizon's POTs and DSL assets in thirteen states back in 2009, but subsequently struggled with the debt obligations and under the Reverse Morris Trust deal made with Verizon. Undaunted, Frontier then acquired all of AT&T's POTs and DSL assets in Connecticut back in 2013. The value of these acquisitions hasn't exactly impressed investors, who note Frontier appears to be getting bigger just for the sake of getting bigger.

While Frontier clearly has expanding national ambitions, they've historically struggled when it comes to upgrading these users to next-generation broadband, and those struggles will continue as the company works to pay off increased debt obligations. With the deal effectively doubling Frontier's current size in one fell swoop, Frontier has its work cut out for it not only in terms of upscaling its customer support operations, but in adhering to the FCC's new 25 Mbps minimum broadband standard definition.

Acquired Verizon customers can check out our Frontier Communications user reviews to see what they're in for next year.