Verizon, Corning Collaborate on $1.05B Fiber Optic Deal

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Verizon Communications Inc. said Tuesday it has committed to 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 agreement calls for Corning to provide and Verizon to purchase up to 20 million kilometers (12.4 million miles) of optical fiber each year from 2018 through 2020, with a minimum purchase commitment of $1.05 billion, said Verizon.

The communications company has been reinventing its network architecture around a next-generation fiber platform that will support all of its 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.

“Corning’s unique combination of capabilities delivers solutions that provide us with performance and cost advantages as we continue to expand our network coverage and capacity,” said Roger Gurnani, Verizon’s chief information and technology architect.