April 18, 2017 —
Verizon Communications has announced a three-year minimum purchase agreement with Corning to provide fiber optic cable and associated hardware for its nationwide wireless broadband network.
The agreement calls for Corning to provide 12.4 million miles of optical fiber each year from 2018 through 2020, with a minimum purchase commitment of $1.05 billion.
In the past several months, Corning has announced plans to expand capacity and to invest more than $250 million in its optical fiber, cable and solutions manufacturing facilities to help meet the demand of its global carrier and enterprise customers. Corning expects these capacity expansions to begin to come online in 2017 and become fully operational in 2018.
Viju Menon, Verizon’s chief supply chain officer, said: “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.”
In an initial deployment, Verizon launched One Fiber in Boston in 2016 and plans to invest $300 million over six years to deploy it throughout the city.
“Verizon has been reinventing its network architecture around a next-generation fiber platform that will support all of the company’s businesses,” said Roger Gurnani, Verizon’s chief information and technology architect. “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.”