Verizon Communications Inc. has lined up $10 billion of short-term bank funding to help fund its purchase of Frontier Communications Parent Inc.
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@7yrd Hans never worked for Vodaphone
Verizon sold the "non-strategic" properties to Frontier for $10.5B. Frontier invested $4.5B into upgrades and Verizon is re-acquiring the now "strategic" properties for $20B. Does this make the term "non" worth $5B?
You can really tell who was a Verizon employee pre 2010 vs post by all these comments.
FYI post 2010 employees. Your secrets out in both companies. pre 2010 employees know you don’t have a clue. You’ll likely not make it to the Verzion/Frontier buyout.
Don’t fret though. Maybe you’ll end up working for one of the local cable companies like where you came from. Or Walmart.
the reason verizon is buying frontier is all the vodafone people involed trying to save there jobs nick jeffery ceo frontier hans the id--t
Frontier is a prototypical generic Telecom with a good customer base and the basic model of what a communications company does. Our company lost that recipe over the past decade trying to make itself into some manner of pseudotech growth company albeit with a mission statement that appears more like a UN NGO than a company that provides the means for people to communicate with each other and share content and ideas. There are currently very few people left who know how to profitably and competitively operate a US Telecom. Most of the current board and almost all of the executive leadership are not really telecom people and they know it.
The company lost its edge with its once legendary 'Network' now rented to any and all competitors on the cheap. The company lost its edge by offshoring its once legendary customer service to folks who really do not understand the needs and pain points of US customers. The company lost its edge by selling off all of its wireless towers and leasing dark fiber from competitors that the company initially paid for and installed.
The company lost its way and relied on too many consultants. The company has some truly good assets, some good old-fashioned engineers, and highly skilled construction and field operations. Long term the company will be fine.
frontier has very little fiber run,so why is verizon buying frontier???anybody???
5G turned out to be much ado about nothing with lots and lots of promises but little to nothing on the delivery. Telecom veterans knew years ago that wireless was well into its steady state. 5G promised to shake this up, but like electric cars, don't have much of a paying audience and not much efficacy compared to 4G++ which is what T-Mobile sells effectively.
The company still has a connectivity edge over TMUS and T throughout most of the country and plain jane FiOS and our Field Operators still beat cable broadband with a stick everyday - once installed in a customer's prems.
The key is that it is time for the company to lock out McKinsey, Boston Consulting, Booz Allen, and Deloitte who have brought nothing but bad ideas and running hard in place to nowhere. The stock is expensive right now but will likely sell significantly higher within 3 years following the Frontier deal. People would rather give up their cars and most luxuries before they give up their phones or Internet.
So why exactly does Verizon want to buy Frontier?
Verizon’s wireless business has been slowing down as 5G adoption begins to saturate and gains seen through Covid-19 have been easing off. Moreover, the wireless market is getting more competitive, with T-Mobile taking a lion’s share of new subscribers thanks to its much-improved network. Cable TV companies like Comcast are also offering wireless services at more affordable prices by leveraging Verizon’s network. In 2023, wireless services revenues expanded by just about 3%. This is forcing Verizon to focus on other areas to drive its cash flows.
Moffett Nathanson are prost---tes for the cable industry. Craig has always hated the company because FiOS was best of the Internet breed. What the company is buying in the Frontier deal is the know-how to run a communications company that was lost through BoD antics of trying to turn the company into something it is not, while ignoring the huge cash flows that it throws off just being itself. This will turn out to be a good deal for employees and investors. The company has lost the focus on what should be its core competencies. Soon the focus will return.
Lets buy a company in 11B of debt, worth maybe 7B, and pay 20B for this just about nothing company. Did'nt they sell it for 12B
Frontier had a total debt of $11.25 billion as of June 30, which will be refinanced by Verizon as part of the deal.
Analysts said the deal would provide only a modest boost to Verizon.
Verizon's fiber network covers less than 10% of the U.S. and the acquisition will give it roughly another 3%, while AT&T covers less than 15%, MoffettNathanson analyst Craig Moffett said.
"You would describe it as going from small to a little bit less small, but that's about the best you could say about it," Moffett said. "There's simply no conceivable path where they can reach meaningful scale with fiber."