- The year 2024 saw some significant M&A activity in fiber broadband
- But 2025 could be even bigger in terms of M&A
- Consultants at PwC say dealmakers should proactively identify acquisition targets
The year 2024 saw some substantial merger and acquisition activity in the fiber broadband space, with Verizon and even T-Mobile getting in on the action. And 2025 could be an even bigger year for fiber broadband M&A activity.
PwC’s 2025 Media & Telecom Deals Outlook states: “It’s been a long time since we’ve seen so many favorable variables align in anticipation of a robust 2025 M&A market. Advances in AI, dry powder at an all-time high, changing regulatory bodies and transformative M&A already announced should provoke media and telecom to move aggressively in 2025.”
The PwC consultants said that President-elect Donald Trump’s appointment of Brendan Carr as Federal Communications Commission chair and Lina Khan being replaced as Federal Trade Commission chair suggest a return to a pro-deregulation agenda. “This move could accelerate consolidation, empowering dominant players to expand their market control,” wrote PwC.
“We anticipate 2025 will see a robust M&A market due to significant dry powder, an evolving ecosystem and pent-up demand that has been sidelined due to regulatory concerns,” said Bart Spiegel, principal for Media & Entertainment at PwC, U.S.
The fiber broadband space may be particularly ripe for M&A activity in 2025.
According to the consulting firm AlixPartners, there are more than 400 small fiber providers in the U.S. that could be snapped up by investors or larger fiber companies.
The firm conducted a survey in August of 60 executives at different fiber companies in the telecom space. According to the survey, 93% of respondents said consolidation is happening or will happen soon.
The PwC consultants advise dealmakers in the sector to keep a vigilant eye on FCC and other regulatory announcements and to prepare for consolidation by proactively identifying acquisition targets that align with their strategic goals.
A look back at broadband M&A in 2024
The year 2024 was no slouch in terms of M&A activity in fiber broadband.
The biggest announcement this year was that Verizon is buying Frontier Communications for $20 billion in cash. The acquisition will combine Verizon’s 7.4 million Fios subscribers with Frontier’s 2.2 million fiber subs. There is very little overlap between the two footprints across 31 states.
Although some Frontier institutional investors opposed the deal, the company’s shareholders ultimately approved the acquisition by Verizon. The purchase is expected to close in the first quarter of 2026.
Shortly after the Verizon/Frontier deal was announced, Bell Canada said it was acquiring Ziply Fiber for about $5.1 billion (CAN $7 billion). The deal would make Bell Canada the third largest fiber internet services provider in North America, after AT&T and Verizon.
Earlier in the year, even T-Mobile said it was buying some fiber providers. It’s forming a joint venture with the investment firm KKR to acquire the fiber provider Metronet. T-Mobile will invest $4.9 billion to acquire a 50% equity stake in the JV as well as all of Metronet’s customers and residential fiber retail operations.
And T-Mobile also formed a joint venture with the investment firm EQT to acquire the fiber provider Lumos. T-Mobile will invest $950 million in the JV to acquire a 50% equity stake as well as all of Lumos’ existing fiber customers.
