Verizon is expanding its broadband network by acquiring Frontier Communications in a $20 billion deal to enhance its fiber footprint, adding 2.2 million subscribers to Verizon’s existing 7.4 million. This move aligns with Verizon’s strategy to bundle broadband and mobile services, although it comes with increased capital expenditures due to the cost-intensive nature of fiber network development. The acquisition will moderately reduce Verizon’s free cash flow in the short term and increase leverage. Despite these challenges, S&P has reaffirmed Verizon’s BBB+ credit rating, and the company expects to realize $500 million in annual synergies by the third year of the merger, while continuing its steady dividend growth.