Does Verizon Own Frontier in 2024? (All You Need to Know)
Verizon and Frontier have been intricately linked players in the ever-changing US telecommunications industry. But does Verizon actually own Frontier right now in 2024? Let‘s take a deeper look.
A Brief History of Verizon‘s Acquisitions and Divestitures
Verizon has grown into a telecom giant in part through major acquisitions over the past two decades:
In 2000, Verizon acquired GTE, expanding its wireline operations significantly.
In 2005, Verizon purchased MCI, bringing long-distance and internet backbone assets under its control.
The biggest deal came in 2015 when Verizon acquired AOL for $4.4 billion, aiming to accelerate its digital media capabilities.
But while bulking up in some areas, Verizon has also strategically dumped some of its wireline assets:
In 2006, Verizon sold off many of its telephone lines in Maine, New Hampshire, and Vermont to FairPoint Communications.
In 2009, Verizon spun off wireline operations in 14 states to Frontier Communications.
And in 2016, Verizon sold off its wireline business in California, Florida, and Texas to Frontier in a deal worth over $10 billion.
So while Verizon and Frontier have been involved in multiple deals, Verizon no longer owns Frontier or the assets it divested.
Frontier by the Numbers
Though it acquired some of Verizon‘s assets, Frontier has struggled competitively and financially:
4.6 million – Number of broadband subscribers, compared to Verizon‘s 7 million FiOS internet customers [Source: Leichtman Research Group]
3 million – Frontier landline subscribers in 2021, down from 4.4 million in 2019 [Source: Statista]
$17 billion – Frontier‘s debt load when it filed Chapter 11 bankruptcy in 2020
21 states – Where Frontier still provides internet, TV, and/or phone service after asset sales and restructuring
Clearly, Frontier does not have the capabilities and reach of Verizon. And persistent declines in its legacy offerings have strained Frontier‘s business model.
What Does This Mean for the Future?
Verizon seems intent on prioritizing its wireless network and premium fiber offerings rather than re-integrate Frontier‘s lagging assets.
And while Frontier extends Verizon‘s footprint, especially in rural areas, the high cost of upgrading infrastructure could deter Verizon from any buyout. Frontier‘s shift towards fiber improvements may need to materialize before Verizon would find its assets attractively accretive.
Some analysts also point to the cultural clash that could occur if Verizon attempted to absorb Frontier. After two major asset transfers between them, lingering distrust or animosity around previous deals could hinder integration efforts.
But certain Frontier fiber markets could fill holes in Verizon‘s coverage down the road. Alternatively, divestitures of Frontier assets in states like Texas and Florida could make sense as bolt-on expansions of Verizon‘s FiOS network. Any M&A is unlikely in the short term, but the two companies‘ fortunes will remain intertwined for years to come.
Conclusion
While Verizon does not currently own Frontier Communications, their complex history of acquisitions and divestitures have left an enduring connection between the two telecom providers. However, significant roadblocks around costs, culture, and infrastructure exist that make a Verizon-Frontier deal unlikely to materialize in the near future. So for now, they will continue to operate as distinctly separate businesses despite their shared past.
