Verizon Communications has decided to purchase optical fiber from none other than Corning for no less than $1.05 Billion for the period of upcoming three years. The move was made so that Verizon can improve its wireless carrier services as well as network infrastructure.
As per the agreement, Corning will trade equal to 12.4 Million miles length of optical fiber to Verizon every year between 2018 and 2020, with a least purchase promise of $1.05 Billion. This declaration sent shares of Corning to $27.21 up by 2.5% in lunchtime deal. Verizon shares also elevated to $48.84 up by 3%.
When asked by the media, Verizon claimed that the contract would assist it to reach its introduction for a fiber-optic network that is scheduled in the near future in Boston.
The firm also outlooks fiber seriously for the upcoming age group, or the upcoming technology of 5G network. Verizon is analyzing a wireless service that is 5G-fixed in nature with tech giant Ericsson in eleven markets all across the U.S. and anticipates a profitable launch by the beginning of 2018.
Verizon Communications and its rival AT&T Inc. have been purchasing belongings in arrangement for 5G. Last week, as per the sources, Verizon is in plans to make a takeover offer to Straight Path Communications Inc., the wireless spectrum license holder, which would overtake the $1.25 Billion value of AT&T.
Verizon has claimed that it would weigh up chances to buy or make out fiber on a large scale. In February 2017, Verizon claimed that it had shut down its acquirement of fiber-optic network business of XO Communications valued for almost $1.8 Billion.
Verizon has also implicated an interest in purchasing Charter Communications Inc., the cable provider that would give it authentication to a cable and fiber network all around to 49 Million houses.
In December, Lowell McAdam, Verizon’s chief executive, said to investors that a contract with Charter would trigger the acquisition conjecture. McAdam also claimed that the form had not discovered the correct “architectural fit” that would validate this acquisition.
For now, the whole world has its eyes on the Verizon–Corning deal.