Verizon Adding Lots of Fiber to Diet for 5G Rollout
- Author: Carolyn Briggs Apr 19, 2017,
Apr 19, 2017, 19:04
In prep for the next generation optical fiber backbone necessary for the deployment of 5G, Verizon has agreed to a minimum purchase agreement with Corning worth at least $1.05 billion. Verizon has been in the process of overhauling its network architecture to take advantage of a next-generation fiber platform capable of supporting all of the company's businesses.
The agreement calls for Corning, a New York-based manufacturer of materials primarily for industrial and scientific applications, to provide up to 12.4 million miles of optical fiber each year for Verizon to purchase starting in 2018 and lasting until 2020, with a minimum purchase commitment of $1.05 billion.
Verizon Communications Inc has agreed to buy optical fiber from Corning Inc for at least $1.05 billion over the next three years as the No. 1 USA wireless carrier aims to improve its network infrastructure, the companies said on Tuesday.
Verizon launched One Fiber, what has been called a more "nontraditional Fios build" for the company, in Boston a year ago.
In order to satisfy Verizon and other carrier customers' need for more fiber facilities, Corning announced plans to expand capacity and to invest more than $250 million in its optical fiber, cable and solutions manufacturing facilities.
Verizon has said it would evaluate opportunities to build out or buy fibre on a market-by-market basis. The company said it expects capacity expansion work to begin this year and become fully operational in 2018.
Last month, Verizon hired former Ericsson CEO Hans Vestberg to oversee its fibre network business as part of a wider restructure of the business.
Telecom operator Verizon announced a 3-year deal with Corning to purchase fiber optic cable and hardware to ensure coverage and capacity for its wireless broadband network.
Verizon has been aggressively acquiring new fiber assets and building out its network. Network and Technology will focus on delivering seamless network experiences for customers, whether on wifi, fiber, 4G, 5G or future technologies. On Friday, sources told Reuters that Verizon is considering making a buyout offer for wireless spectrum licence holder Straight Path Communications Inc (STRP.A) that would top AT&T Inc's (T.N) $1.25 billion bid.