The Federal Communications Commission (FCC) announced on May 16, 2025, that it has approved Verizon Communications' $20 billion acquisition of Frontier Communications, the largest pure-play fiber internet provider in the United States. The regulatory green light comes after Verizon agreed to end its diversity, equity, and inclusion programs in line with the current administration's policies.
The acquisition, initially announced in September 2024, involves Verizon paying approximately $9.6 billion in cash and absorbing $10 billion in Frontier debt. FCC Chairman Brendan Carr stated that the deal "will unleash billions of dollars in new infrastructure builds in communities across the country" and "accelerate the transition away from old, copper line networks to modern, high-speed ones."
For Verizon, this strategic acquisition significantly expands its fiber footprint across the nation. Frontier's 2.2 million fiber subscribers across 25 states will join Verizon's approximately 7.4 million Fios connections, extending Verizon's reach to 25 million locations in 31 states and Washington, D.C. The company has committed to deploying fiber-optic internet access to at least one million new homes annually.
Beyond the immediate broadband expansion, the deal has substantial implications for Verizon's AI strategy. The acquisition will strengthen Verizon's intelligent edge network for digital innovations, particularly in artificial intelligence and Internet of Things (IoT) applications. This aligns with Verizon's recently unveiled AI Connect strategy, which aims to provide low-latency edge computing for AI workloads through partnerships with companies like NVIDIA, Google Cloud, and Meta.
The AI edge computing sector, where Verizon is positioning itself as a key player, is forecast to expand tenfold from $27 billion in 2024 to $270 billion by 2032. Verizon's 5G network and expanded fiber infrastructure will support the fast speeds and security required to deliver AI to edge devices such as laptops and mobile phones. According to McKinsey, 60-70% of AI workloads are expected to shift to real-time inference by 2030, creating urgent demand for the kind of low-latency connectivity Verizon aims to provide.
The transaction is expected to yield $500 million in annual cost savings by the third year through benefits of increased scale, distribution, and network integration. Frontier shareholders approved the acquisition in November 2024, with approximately 63% voting in favor of the merger agreement. The deal is now expected to close in the coming months, completing a process that began when Verizon announced the acquisition in September 2024.