Verizon agrees to USD 1.05bn 3-year purchase agreement with Corning for optical solutions

Verizon Communications Inc. (NYSE, Nasdaq: VZ) has signed a three-year minimum purchase agreement with Corning Incorporated (NYSE: GLW) to provide fiber optic cable and associated hardware for Verizon to ensure critical coverage and capacity for its nationwide wireless broadband network, the company said.

The agreement calls for Corning to provide and Verizon to purchase up to 20 million kilometers (12.4m miles) of optical fiber each year from 2018 through 2020, with a minimum purchase commitment of USD 1.05bn.

Verizon has been reinventing its network architecture around a next-generation fiber platform that will support all of the company´s businesses. This new architecture is designed to improve Verizon´s 4G LTE coverage, speed the deployment of 5G, and deliver high-speed broadband to homes and businesses of all sizes.

In an initial deployment, Verizon launched One Fiber in Boston in 2016 and plans to invest USD 300m over six years to deploy it throughout the city.

Verizon Communications, headquartered in New York City, has a diverse workforce of 160,900 and generated nearly USD 126bn in 2016 revenues. Verizon operates America´s most reliable wireless network, with 114.2m retail connections nationwide. The company also provides communications and entertainment services over mobile broadband and the nation´s premier all-fiber network, and delivers integrated business solutions to customers worldwide.