Verizon Inks $1B Corning Deal Providing 37 Million Miles Of Fiber For LTE Network

In an effort to improve beef up its nationwide wireless broadband network, Verizon has agreed to purchase fiber optic cabling from Corning for $1.05 billion, which will be paid out over the next three years, the two companies announced today. As part of the agreement, Corning will provide the nation's largest wireless carrier up to 20 million kilometers (12.4 million miles) of optical fiber each year from 2018 through 2020.

"Our plans identified a shortfall in fiber supply, and Verizon has been working with business teams to forecast demand and fill supply gaps with existing suppliers. Securing the required volume of optical fiber and hardware solutions with Corning will ensure we meet our planned rollout schedules," said Viju Menon, Verizon's chief supply chain officer.

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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 new architecture will result in better 4G LTE coverage and speed up the deployment of 5G connectivity, while simultaneously delivering high-speed broadband service to homes and businesses, regardless of size.

"We are pleased that Verizon recognizes the value of Corning’s innovative solutions in deploying next-generation converged optical infrastructure, such as One Fiber, more quickly and cost effectively. Verizon’s purchase commitment supports necessary capacity investments across our manufacturing footprint," said Clark Kinlin, executive vice president for Corning.

This is not the first time the two companies have come together in a business arrangement. Verizon previously deployed One Fiber in Boston last year and plans to invest $300 million over the next six years to deploy it throughout the city.

Verizon continues to invest heavily in its future. Back in February, it completed a purchase of XO Communications' fiber-optic network business for around $1.8 billion. The wireless carrier has also shown interest in acquiring Charter Communications.

Thumbnail Image Source: Flickr (Mike Mozart)