Eaton Fiber

Verizon has announced a commercial fiber agreement with Eaton Fiber LLC [1.], an affiliate of Tillman Global Holdings, that will enable Verizon to sell fiber-based services outside its current wireline footprint and beyond the areas it will gain via its pending acquisition of Frontier Communications. It’s another important step to accelerate Verizon’s broadband and mobility convergence strategy, which has also been embraced by AT&T and T-MobileUS.

Note 1. “Eaton Fiber is a wholesale-only FTTP network provider powering ISPs with fast, frictionless access to future-ready fiber. Our open-access platform makes it easy for ISPs to expand across key U.S. markets—without building or managing the network. Our open-access platform makes it easy for ISPs to expand across key U.S. markets – without building or managing the network. You bring the service. We deliver the speed,” Eaton Fiber states on its website.

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Eaton Fiber will fund and build the network and take care of network maintenance and installation, while Verizon will be responsible for sales and marketing and end-user customer service. The agreement will expand Verizon’s premium broadband offering, complementing the company’s ongoing fiber builds and planned acquisition of Frontier. The agreement is expected to bring ultra-fast, high-capacity fiber service to homes and customers in markets outside of Verizon’s and Frontier’s current fiber-to-the-home footprint.

Image Credit: Eaton Fiber

“Our strategy is clear: lead the market in premium mobility and broadband convergence, and fiber is the foundation of that leadership,” said Sowmyanarayan Sampath, Executive Vice President for Verizon and CEO for Verizon Consumer. “This agreement allows us to rapidly enter new markets, accelerate deployment speed and ensure we maintain the necessary flexibility to capture growth opportunities across the country.”

“We are pleased to partner with a world-class provider in Verizon,” Sanjiv Ahuja, Founder, Chairman, and CEO of Tillman Global Holdings. “Marking a significant expansion of Tillman’s fiber deployments, this announcement underscores our shared commitment to expanding next-generation infrastructure nationwide.”

Missing from the press release: Verizon did not say where Eaton Fiber has built networks, where it intends to build, or how many homes and businesses Verizon eventually will be able to serve off of Eaton’s platform. Verizon also neglected to say when it will start to offer services via Eaton Fiber’s networks. It’s also not clear if Verizon is considered an anchor tenant or will represent one of multiple tenants that will sell services over Eaton Fiber’s network.

Tillman Fiber, builds and operates symmetrical gigabit-capable services over fiber-to-the-premises networks. The company was founded in 2021, and its backers include Tillman Global Holdings and Northleaf Capital Partners. In July, Tillman Fiber launched fiber networks serving parts of Northport, Kissimmee and Deltona and Hernando County in Florida. T-MobileUS is offering services on that network as part of a broader fiber Internet strategy that’s also underpinned by partnerships and acquisitions of Lumos, Metronet and US Internet.

Both Tillman Fiber and Eaton Fiber note on their respective websites that their fiber networks use an open access model that sells wholesale access to other Internet service providers (ISPs).

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New Street Research David Barden remarked in a research note (registration required) that Eaton Fiber has not yet revealed its leadership. But given that Verizon referenced Frontier in today’s announcement, he wondered if Veronica Bloodworth, a former AT&T exec who has been serving as Frontier’s EVP and chief network officer since 2021, or Vishal Dixit, Frontier’s EVP of strategy and wholesale, “could be on a short list.” Barden also suggested that today’s announcement with Eaton Fiber is more about intent rather than specifics. “Given that this agreement was seen as worthy of a press release, especially within a month of Dan Schulman taking over the reins of the company, this release is also very likely about ambition as well,” Barden wrote.

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Verizon’s new agreement with Eaton Fiber is proceeding as the company approaches the finalization of its $20 billion acquisition of Frontier Communications.

The integration of Frontier’s assets is expected to boost Verizon’s fiber network, increasing its reach to serve about 25 million premises throughout 31 states and Washington, D.C.. In addition to constructing 500,000 new FiOS locations this year, Verizon has set a strategic goal of achieving over 30 million fiber passings by 2028 and is exploring an eventual expansion to 35-40 million homes and businesses.

References:

https://www.verizon.com/about/news/verizon-expanding-broadband-new-strategic-fiber-agreement

https://www.lightreading.com/broadband/verizon-taps-into-eaton-fiber-to-broaden-fiber-reach

https://www.verizon.com/about/news/verizon-acquisition-starry