hey what's going on everybody this is tyd Rome back with tech life great article from Yahoo finance I'll leave a link to it in the description so you guys could check it out so this is the longer video the longer breakdown of the soon to be announced as as early as this week Verizon nearing a deal for Frontier Communications and the original report comes from the Wall Street Journal genius move this is a genius move by Verizon um one of the best moves I have seen them make likely since they bought cband and they they were going to buy cand that was a foregone conclusion this is this is that big of a move and has that much of an impact in my opinion as the cand purchase so just briefly uh to discuss why this is a genius move if and very confident in this if Verizon doesn't make this play AT&T does it in the short term and TMobile does it in the long term either or if Verizon does not buy Frontier in the short term AT&T is going to buy it and if AT&T doesn't buy it T-Mobile will buy it in the long term like 2026 2027 so essentially what Verizon did and why this is a genius move they one uped AT&T and they also W uped T-Mobile and I'm confident that AT&T was was was wanning to buy Frontier I'm very confident in that speak with people behind the scenes everyone was was on board and on the same sheet of music that AT&T had interest a strong interest in buying Frontier to further fuel their Ambitions to continue to expand fiber and this was a way to do it and for T-Mobile the reason I put it in the long term is because T-Mobile is just getting their feet wet in fiber and this would this deal would have help them gain some scale right a little bit of scale wouldn't have been like a huge asset to them because they don't have anything to go off of except Metronet and and lumos but those are still relatively small but it would have gained T-Mobile additional scale but now once this is officially announced I mean we don't even have to speculate because Verizon is going to get it once this deal is announced Verizon will get Frontier now there's still regulatory approvals all that we have to go through so I do want to mention that because it could still it could still fail but you know I I I would I would assume that this goes through I don't see this being a huge threat to becoming a monopoly but I do I do see Verizon becoming a Powerhouse if you will in in the Fiber space they they would have more fiber to the cell right H if you know you add that to the mci1 fiber any Frontier fiber today that goes to the Verizon cell which there's a good amount out there that does Verizon would now own that strand of fiber once this deal completes so they would essentially own more fiber to the sell and own more fiber to the home so this is just adding more assets to the already existing strong portfolio of Horizons so from that aspect it's a smart move they want to they want to be right there with the competition you guys have heard me mention this when when when it clicked for me when AT&T talked about a huge percentage of convergence between Wireless and fiber when they when they showed us that graph at the Q2 earnings and it was closing in on 40% I made video back then that let me know that Verizon has to make a move yeah they kept talking you know they kept downplaying it but in the in those videos that I made for those of you who watched them they also set the same about satellite and now they got two Satellite Partners they got as and then they just got one with uh strictly messaging so they're they're going all in I feel this is just me I analyze I overlook I break it down I I I speak with people behind the scenes I speak with the sources and I form an opinion I feel this is Verizon's entrance a bigger entrance into the converged offer they weren't really playing that big or playing a big part in it because they really didn't have a bigger fiber footprint outside of where they where they currently have files today so they say their converged offer percentage wise is in about the 10% range I guarantee you once this Frontier deal closes and they have the the the Verizon uh marketing you know and they integrate that into their Network guarantee you that percentage goes up they said it today sampa said it today in the convert space that they operate in today where it's wireless and fiber where they have it bundled 50% less churn on wireless 40% less churn on fiber the numbers are there the numbers are right in front of us so with this move with Frontier once this closes and and they get all those uh fiber assets I guarantee you that converged offer is going to explode at the very beginning there's going to be a lot of Frontier fiber customers that don't have Verizon Wireless if they are if Horizon smart and they execute and those customers are greeted with a nice bundle option for wireless and fiber get give them a 20% discount whatever they will take it they will take it it's going to bring a bigger importance to the converged offer for Verizon and Verizon through FiOS they also offer a TV product so that's another big important piece people are still looking for TV today I got people messaging me hey who do you use for TV people are still interested in some form of TV if it's streaming cable whatever they still are looking for a good deal and you know the triple plate what what they used to call it the the TV the internet and then the the wireless Verizon can now offer that at a bigger scale once this Frontier deal closes so there's still lots of uh opinions out there lots of speculation I'm going to ask around I'm confident that this deal closes this week I mean this is just too too hot right where there's smoke there's fire but this is really hot people are saying it's expected to close this week I'm going to ask a few people internally to see what they're what they're hearing but I'm confident that we will get an official announcement or a press release I should say from Verizon very soon Verizon is going to be presenting at conferences all week uh today was the CEO of consumer sampa tomorrow it's Joe Russo the in who's in charge of the network and then I think there's one other conference that Hans vestberg might be presenting at so I think we do get an announcement sometime this week and you know this would be big this would be right before T-Mobile presents their their future guidance um September 18th so this is good to see right so we don't have to no longer speculate on who's going to buy Frontier we now know who who wants to buy Frontier and it's and it's clearly Verizon so Verizon continuing to spend right this deal is not going to be too much um Frontiers valued at about 7 billion and moving forward Verizon has to of course make a return on that investment but 7 billion if you compare what T-Mobile has spent it's right around the same so it's it's not that huge not like Verizon is having to add $50 billion onto the balance sheet in debt which if T-Mobile went after went after a cable player like Charter Spectrum Comcast who knows right they would be adding a ton of money onto the balance sheet they would go into big debt if they go after cable player so if that is a possibility I I would even say it's it's years away if that ever became a possibility the biggest possibility I always thought of T-Mobile buying a bigger quote unquote fiber player was Frontier and Verizon just blindsided everyone right they they said we're going to take this deal we're going to run with it we're going to invest in it and we're going to make it work they're going to follow their their playbook if if it's one thing that they know and know very well in terms of execution they know how to build the services that they're that they operate they know how to build a wireless network they know how to build fiber they know how to do it very well they have specific departments for that so buying a company that you had previous ownership in should be no problem in integrating anything along the lines that has to do with fiber so if it's data centers if it's whatever it is Verizon will do it they will do it very quickly very swiftly they will invest whatever they need to do like I mentioned in the video earlier um less BuyBacks or no BuyBacks at all whatever they might not initiate any BuyBacks with this deal very possible but this is going to lead to further return on investment um a bigger return on investment that than Verizon may have even thought and this is going to lead to further fiber expansion this makes this makes Verizon a bigger P Powerhouse as it pertains to fiber than they already are and like I said this expands their fiber to the home footprint and also o would expand the fiber to the cell footprint they want to 100% own the asset that that they deploy SF was asked this morning if they're interested in the Open Access he says he says no not really they they want to own the product that they deploy and that they service and this deal tells us just that right if you if they were interested in an Open Access deal we would have had an Open Access type of deal with Frontier or someone else right that that would have been the deal that we were presented just like what we saw with what we're seeing with T-Mobile Metronet lumos those are all open access deals T-Mobile doesn't own the company they just they just do they just lease back the fiber Verizon want to wants to buy Frontier they want to buy those assets and then they want to integrate those assets and deploy and maintain that asset themselves they don't want no Open Access no leasing they want to own it and that's what this shows us so if it's one thing that I'm confident the the converged offer they talked about that in in a negative light but then they they they did something completely opposite and now they're buying more fiber from what I fully fully expect is them trying to go bigger on convergence same with satellite they downplayed it now they're going big on satellite the only thing that I don't see them like don't see them changing course and sticking to what they're talking about is the Open Access I don't see them going through with the Open Access deals because they're still buying up fiber players they want to own it they want to own it so that's one thing that I'm confident in unless that changes they do not want to do any type of leasing Open Access they don't want to do it AT&T and T-Mobile they they they seem to favor that model now Verizon no they got on board with they're getting on board with convergence they got on board with satellite but with the Open Access fiber play I don't see Verizon getting on board with that because of Moves Like This Frontier deal so let me know your thoughts let me know your thoughts in in in the comments I want to hear from you guys do you think this is this is the right move do you think this is a genius move I think it's a genius move it gains them more fiber to the home gains them more fiber to the sale at a reasonable price so let me know your thoughts in the comments like share subscribe if you're new follow my social media Outlets this is Ty Ron with tech life see y'all in the next one peace