Verizon is Buying Frontier in $20B Deal to Strengthen its Fiber Network

This April 23, 2018, file photo shows the logo for Verizon above a trading post on the floor of the New York Stock Exchange. Verizon's decision to join the growing boycott against Facebook and Twitter risks hurting the social media giants where it hurts most: their advertising revenue. Advertising accounts for nearly all Facebook's $70.7 billion annual revenue, and a similar share of Twitter's $3.46 billion. (AP Photo/Richard Drew, File)
This April 23, 2018, file photo shows the logo for Verizon above a trading post on the floor of the New York Stock Exchange. Verizon's decision to join the growing boycott against Facebook and Twitter risks hurting the social media giants where it hurts most: their advertising revenue. Advertising accounts for nearly all Facebook's $70.7 billion annual revenue, and a similar share of Twitter's $3.46 billion. (AP Photo/Richard Drew, File)
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Verizon is Buying Frontier in $20B Deal to Strengthen its Fiber Network

This April 23, 2018, file photo shows the logo for Verizon above a trading post on the floor of the New York Stock Exchange. Verizon's decision to join the growing boycott against Facebook and Twitter risks hurting the social media giants where it hurts most: their advertising revenue. Advertising accounts for nearly all Facebook's $70.7 billion annual revenue, and a similar share of Twitter's $3.46 billion. (AP Photo/Richard Drew, File)
This April 23, 2018, file photo shows the logo for Verizon above a trading post on the floor of the New York Stock Exchange. Verizon's decision to join the growing boycott against Facebook and Twitter risks hurting the social media giants where it hurts most: their advertising revenue. Advertising accounts for nearly all Facebook's $70.7 billion annual revenue, and a similar share of Twitter's $3.46 billion. (AP Photo/Richard Drew, File)

Verizon is buying Frontier Communications in a $20 billion deal to strengthen its fiber network.

Verizon Communications Inc. said Thursday that the acquisition will also shore up its foray into artificial intelligence as well as connected smart devices.

Frontier has concentrated heavily on its fiber network capabilities over about four years, investing $4.1 billion upgrading and expanding its fiber network. It now gets more than half of its revenue from fiber products.

The price tag for Frontier, based in Dallas, is sizeable given its 2.2 million fiber subscribers across 25 states. Verizon has approximately 7.4 million Fios connections in nine states and Washington, D.C, The AP reported.

Frontier has 7.2 million fiber locations and has plans to build out an additional 2.8 million fiber locations by the end of 2026.

“The acquisition of Frontier is a strategic fit," Verizon Chairman and CEO Hans Vestberg said in a prepared statement. "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.”

Verizon, based in New York City, will pay $38.50 for each Frontier share. The deal is expected to close in about 18 months. It still needs approval from Frontier shareholders.

Shares of Frontier Communications Parents Inc., which were halted briefly on Wednesday after a report from the Wall Street Journal about the deal sent the stock up nearly 40%, fell 9% before the market opened on Thursday. Verizon's stock rose slightly.



Report: Apple Considering Raising iPhone Prices

People visit an Apple store promoting its iPhone 16 at an outdoor shopping mall in Beijing, Sunday, May 11, 2025. (AP)
People visit an Apple store promoting its iPhone 16 at an outdoor shopping mall in Beijing, Sunday, May 11, 2025. (AP)
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Report: Apple Considering Raising iPhone Prices

People visit an Apple store promoting its iPhone 16 at an outdoor shopping mall in Beijing, Sunday, May 11, 2025. (AP)
People visit an Apple store promoting its iPhone 16 at an outdoor shopping mall in Beijing, Sunday, May 11, 2025. (AP)

Apple is weighing price hikes for its upcoming fall iPhone lineup, but is keen to avoid linking any increases to US tariffs on imports from China, where most of its devices are assembled, the Wall Street Journal reported on Monday.

The technology giant's shares were up 7% in premarket trading, tracking gains in the wider market after Washington and Beijing agreed to temporarily slash the reciprocal tariffs on Monday. But Chinese imports will still be subject to a 30% levy in the US.

Apple is among the most prominent firms caught in US-China trade tensions, which intensified in recent months after a series of tariffs initiated by President Donald Trump.

The company did not immediately respond to a Reuters request for comment on the WSJ report, which cited people familiar with the matter.

Raising prices could help Apple cushion higher costs stemming from the tariffs that have hampered global supply chains and forced the company to shift more production to India.

Apple said earlier this month that tariffs were expected to add about $900 million in costs during the April-June quarter and that it would source a majority of the iPhones sold in the US in the period from India.

Analysts have for months speculated about a price increase from Apple, but warned that such a move could cost it market share, especially as rivals such as Samsung try to attract consumers with AI features that Apple has been slow to roll out.

The cheapest iPhone 16 model was launched in the US with a sticker price of $799, but could cost as much as $1,142 due to tariffs, per projections last month from Rosenblatt Securities, which say the cost could rise by 43%.

The WSJ report said Apple was planning on coupling the price hikes with new features and design changes including an ultrathin design, which could help justify the increases.