Telecommunications giant Verizon lands more than $1 billion Google data center fiber deal
The contract is part of its strategy to build a standalone connectivity business focused on multinational enterprises.
Verizon, one of the largest US telecommunications companies, has secured a contract worth more than $1 billion with Google to connect the company’s data centers using Verizon’s dark fiber network, CEO Dan Schulman announced during the company’s quarterly earnings call.
The telecom giant said the agreement supports its efforts to expand a dedicated connectivity business serving large multinational organizations. Schulman also said Verizon expects to unveil more enterprise connectivity deals before year-end that together could generate several billion dollars in revenue over the coming years.
Alongside the announcement, Verizon said its cost structure continues to improve as customer acquisition and retention expenses decline.
The company reiterated that it remains on track to achieve at least $9 billion in operating and capital expenditure savings and said its consumer value proposition launched in June has exceeded internal expectations.