Verizon and Eaton Reach Fiber Optic Partnership to Accelerate Broadband Deployment

Verizon has signed a commercial agreement with Eaton Fiber, a subsidiary of Tillman Global Holdings, to expand its fiber optic broadband services beyond existing Fios coverage areas and future Frontier markets. This news was released less than a month after Verizon suddenly appointed Dan Schulman as its new CEO, indicating that the new management is rapidly advancing strategic adjustments.

According to the joint statement of the two companies, Eaton will be responsible for the funding, construction, maintenance, and installation of the network, while Verizon will focus on sales, marketing, and customer service, and become the exclusive retail provider of residential broadband services during the network construction phase and specific periods thereafter. The wording of the agreement indicates that Eaton’s network may eventually transition to an open access model, which is in line with Tillman’s business model – its parent company Tillman Global is the controlling shareholder of Tillman FiberC, which primarily builds open access networks in Florida (currently tenants include T-Mobile), and plans to expand to other states.

New Street Research analyst David Barden pointed out in a report to investors that Verizon’s move is following in the footsteps of its competitors. AT&T continues to expand its Gigapower network, while T-Mobile collaborates with open access operators such as Tillman and Intrepid. Barden said, “AT&T and T-Mobile have been actively establishing joint ventures and wholesale agreements for the past three years, and it’s only a matter of time before Verizon reaches a similar partnership. ”He predicts that the Eaton protocol will be the “first” among many wholesale deals that Verizon is considering, and the company may even consider accelerating fiber coverage through more mergers and acquisitions.

According to Roger Entner, head of Recon Analytics, Schulman is also working to adjust Verizon’s fiber strategy. Verizon currently plans to cover 35 to 40 million fiber optic locations through Frontier in the coming years, and 650000 Fios locations by the end of 2025. However, due to the fact that fixed wireless access (FWA) accounts for the majority of the net increase in broadband users, the progress of fiber optic services is relatively lagging behind.

“Dan Schulman has just provided the answer by accelerating progress through the agreement with Tillman,” Entner said. Shortly before the announcement of this collaboration, Verizon had just announced the acquisition of Starry to expand its urban FWA coverage, and last week also launched a low-priced FWA package for $25 per month – possibly to meet California regulatory requirements for the Frontier merger.

Schulman emphasized in a memo to employees that under his leadership, the company will “act quickly and decisively to win in the mobile and broadband fields. Analysts generally view Schulman as a short-term solution to address the continued loss of Verizon’s postpaid users, while the rapid achievement of Eaton’s fiber optic protocol confirms the new CEO’s determination to accelerate the reform of fixed and mobile strategies.