Frontier Communications and Verizon Complete $10.54 billion Acquisition Deal

Published On
Mar 15, 2016

As of today, Apr. 1, 2016, Frontier Communications, a Connecticut-based telecom, will take over Verizon's FiOS and landline users in Florida, Texas and California in exchange for $10.54 billion. These networks previously called FiOS by Verizon will now be called FiOS by Frontier.

The transfer includes 3.7 million voice connections, 2.2 million broadband connections and 1.2 million video connections. Verizon’s mobile phone business, Verizon Wireless, was not part of the deal. The companies first announced they had reached an agreement on Feb. 5, 2015, but it has taken a little over a year to transfer the necessary data and complete the transaction.

Frontier gained the support of The International Brotherhood of Electrical Workers (IBEW) local unions in California and Florida after striking deals with both in October 2015. California IBEW Local No. 543 and Florida IBEW Local No. 824 represent 200 and 2,700 electricians, respectively. In the agreements, Frontier pledged 100 shares of restricted stock of Frontier, wage increases, job security and additional employee training in addition to maintaining a 100 percent United States-based workforce. They also agreed to add 25 new union jobs in California, and 100 new union positions in Florida.

Similar deals were made between Frontier and the Communications Workers of America (CWA) District 9 (California) and District 6 (Texas and Missouri) in July 2015. Again union workers sought job protection, wage increases, the addition of union jobs, 100 shares of Frontier for each union employee and a commitment to a 100 percent U.S. based workforce.

This is not the first time Frontier has taken over Verizon assets. Frontier acquired four FiOS markets covering networks primarily in the Midwest and Pacific Northwest from a deal with Verizon over five years ago. Frontier gained 4.8 million access lines from Verizon, valued at $8.6 million.

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