Verizon Closes $20B Frontier Deal, Expands Jersey Fiber Network

Verizon completed its $20 billion acquisition of Frontier Communications Monday, creating the largest fiber internet provider in New Jersey and dramatically expanding coverage to rural communities that have struggled with slow broadband for decades.

The deal, which closed after 14 months of regulatory review, gives Basking Ridge-based Verizon control of Frontier’s 2.2 million fiber customers across 25 states, including significant rural coverage in South Jersey, the Pine Barrens, and Northwestern counties where Verizon’s FiOS service never reached.

“This acquisition transforms how we serve New Jersey customers, particularly in areas that have been underserved by high-speed internet,” Verizon spokesperson Jennifer Van Der Meer said in a statement. “We’re committed to upgrading Frontier’s infrastructure to Verizon standards within 18 months.”

The merger creates a telecommunications powerhouse with more than 9.6 million fiber customers nationwide, but also eliminates a major competitor in markets where both companies operated. Consumer advocates worry the consolidation will lead to higher prices and less innovation, particularly in rural areas with few broadband options.

Verizon paid $38.50 per share for Norwalk, Connecticut-based Frontier, a 37% premium over the company’s stock price before acquisition talks began. The deal includes $11 billion in cash and assumption of $9 billion in Frontier debt.

For New Jersey, the acquisition fills geographic gaps that have frustrated residents and businesses for years. While Verizon’s FiOS fiber network covers most urban and suburban areas, the company largely stopped expanding the service in 2010, leaving rural communities dependent on slower copper-wire connections or satellite internet.

Frontier built significant fiber infrastructure in these underserved areas over the past five years, including networks in Cumberland, Salem, and parts of Burlington County. The company also serves portions of Hunterdon, Somerset, and Morris counties where Verizon never offered FiOS.

“This gives Verizon what it always wanted — complete coverage of New Jersey without the massive infrastructure investment,” said telecommunications analyst Craig Moffett of MoffettNathanson Research. “They’re buying their way into markets they abandoned.”

The deal comes as New Jersey pushes to expand broadband access statewide. Governor Murphy’s administration has allocated $265 million in federal funds to improve internet infrastructure, with much of the money targeted at rural areas. The Verizon-Frontier merger could accelerate those efforts or make them redundant, depending on how quickly the company upgrades service.

State officials have taken a cautious approach to the acquisition. The Board of Public Utilities approved the deal in November with conditions requiring Verizon to maintain current service levels and honor existing customer contracts for at least two years.

“We want to ensure this merger benefits New Jersey consumers, not just shareholders,” BPU President Christine Guhl-Sadovy said during approval hearings. “That means better service, fair prices, and continued investment in our state.”

Verizon has committed to spending $20 billion nationally over three years to upgrade Frontier’s network infrastructure. In New Jersey, that translates to roughly $800 million in improvements, including fiber-to-the-home upgrades for communities still using older technology.

The company plans to rebrand all Frontier services under the Verizon name by late 2025, though customers can keep existing plans and pricing for now. Verizon also pledged to hire 3,500 new employees nationwide, with an estimated 400 positions expected in New Jersey.

Not everyone celebrates the consolidation. Small business groups worry about reduced competition in markets where Frontier offered an alternative to Verizon’s premium pricing. In some South Jersey communities, Frontier provided the only high-speed fiber option.

“When you eliminate competitors, consumers lose,” said Stefanie Brand, New Jersey’s public advocate. “We’ll be watching closely to ensure Verizon doesn’t use its expanded market power to raise prices or reduce service quality.”

The acquisition also positions Verizon to compete more effectively against cable giants like Comcast, which dominates broadband in much of New Jersey. With expanded fiber coverage, Verizon can now offer internet service to nearly every address in the state, something impossible before the Frontier deal.

Industry observers expect the merger to trigger similar consolidation as telecommunications companies seek scale to compete with tech giants investing heavily in internet infrastructure. Amazon, Google, and Microsoft have all announced plans to expand fiber networks, putting pressure on traditional providers.

For Frontier customers, the transition promises better service but potentially higher prices. Verizon’s plans typically cost more than Frontier’s, though the company has pledged to honor existing contracts. New customers will pay Verizon rates, which can be 20-30% higher than Frontier’s pricing.

The deal also eliminates roughly 500 jobs nationally as Verizon consolidates operations, though the company said most cuts would come from corporate functions rather than customer service or field technicians. New Jersey job losses are expected to be minimal given the need for local service personnel.

Verizon expects the acquisition to generate $500 million in annual cost savings by 2027, primarily through combining networks and eliminating duplicate services. The company also sees revenue opportunities from selling business services to Frontier’s existing customers.

State regulators plan quarterly reviews of Verizon’s service quality and pricing for the next three years to ensure the merger delivers promised benefits. The company must also file annual reports on infrastructure investments and customer satisfaction metrics.

The Frontier acquisition represents Verizon’s largest deal since purchasing AOL and Yahoo to create its media division, which the company later sold. Unlike those ventures into content, the Frontier purchase focuses on Verizon’s core telecommunications business and fits the company’s strategy of expanding high-speed internet access.

Customers should see the first changes within 60 days as Verizon begins upgrading Frontier’s customer service systems and network management. Full integration of both companies’ fiber networks is expected by 2026, creating what Verizon calls “the nation’s most comprehensive fiber infrastructure.”