Verizon Communications has announced a significant update to its broadband strategy, aiming to expand its fixed wireless and fiber offerings to millions of new customers across the U.S. Verizon reached its fixed wireless access (FWA) subscriber target 15 months ahead of schedule, with nearly 4.2 million subscribers at the end of the third quarter of 2024, a 57% increase year over year. By 2028, the company expects to double its FWA subscriber base to 8-9 million, while expanding coverage to 90 million households. Verizon also revealed plans to roll out advanced mmWave solutions for densely populated apartment and office buildings, leveraging existing infrastructure to speed up deployments and reduce costs.
In addition to its fixed wireless growth, Verizon is aggressively expanding its fiber network. With its planned acquisition of Frontier Communications, the company is on track to significantly increase its fiber passings from 30 million in 2028 to an eventual 35-40 million. Frontier’s extensive fiber network is expected to add 9-10 million passings upon closing of the acquisition, which will be seamlessly integrated into Verizon’s existing Fios network. Verizon plans to accelerate its fiber builds, with the potential to add up to 1 million fiber passings annually following the acquisition.
Verizon’s updated broadband strategy is part of its broader focus on delivering premium connectivity services to both residential and business customers. The company remains committed to its capital allocation priorities, including sustained investment in network infrastructure, maintaining its dividend, and reducing debt. With expected capital expenditures of $17.5-$18.5 billion for 2025, Verizon aims to continue building out its broadband infrastructure while meeting its financial targets.
Key Points:
• Fixed wireless access (FWA) subscribers reached 4.2 million in Q3 2024, a 57% increase year over year.
• Verizon expects 8-9 million FWA subscribers by 2028, with coverage expanding to 90 million households.
• Advanced mmWave solutions for apartment and office buildings will launch soon, leveraging existing infrastructure for faster, cheaper deployments.
• Fiber network passings are expected to grow to 35-40 million over time, driven by the Frontier Communications acquisition.
• The Frontier acquisition is expected to add 9-10 million fiber passings, integrated into Verizon’s Fios network.
• Verizon plans to add up to 1 million fiber passings annually after the Frontier acquisition.
• Capital expenditures for 2025 are expected to range between $17.5-$18.5 billion.
• The company aims to reduce its net unsecured debt to adjusted EBITDA ratio to 2.0-2.25x.
“We are creating an integrated connectivity experience that gives customers freedom in how they connect and use our services,” said Hans Vestberg, Verizon Chairman and CEO. “This is about delivering the network of the future, and setting a new bar for the entire industry.”
- In September, Verizon Communications agreed to acquire Frontier Communications in an all-cash deal valued at $20 billion. The acquisition is expected to expand Verizon’s fiber network to over 25 million premises across 31 states and Washington, D.C. Frontier, a leading fiber internet provider, currently serves 2.2 million fiber subscribers and is on track to extend its network to an additional 2.8 million locations by 2026.
- Frontier Communications, originally founded in 1935 as Citizens Utilities Company, began as a utility service provider but shifted its focus to telecommunications in the 1980s. It rebranded to Frontier Communications in 2008, reflecting its growing telecom operations. In 2009, Frontier made a major move by acquiring Verizon’s rural wireline assets in 14 states for $8.6 billion, significantly expanding its broadband and telecommunications reach. This was followed by a 2015 deal in which Frontier purchased additional wireline assets from Verizon in California, Texas, and Florida for $10.54 billion, further cementing its position in the market. However, financial struggles, including high debt from these acquisitions, led Frontier to file for bankruptcy in 2020. After emerging from bankruptcy in 2021, Frontier focused on expanding its fiber network, positioning itself as a major player in rural broadband .
- Frontier has invested $4.1 billion into upgrading and expanding its fiber network over the past four years, generating more than half of its revenue from fiber services. With this acquisition, Verizon aims to integrate Frontier’s fiber assets with its own, enhancing its ability to deliver premium broadband and mobility services to a broader customer base. The transaction is also expected to generate $500 million in annual cost synergies.