Verizon today agreed to buy Frontier Communications for $20 billion.

Why it matters: This is the latest in a series of massive telecom mergers, and it strengthens Verizon's fiber businesses to help it better compete with rivals like AT&T.

The big picture: The race to build fiber networks has increased as wireless growth has slowed. But building out fiber networks is costly, which makes acquisitions more enticing.

• AT&T has made expanding its 5G and fiber business one of its main priorities since shedding WarnerMedia in 2022.

Zoom in: The deal boosts Verizon's scale and geographic reach in fiber.

• Frontier's 2.2 million fiber customers across 25 states will combine with Verizon's 7.4 million Fios customers in nine states and Washington, D.C.

What they're saying: Verizon CEO Hans Vestberg called the acquisition a strategic fit and one that provides an opportunity "to become more competitive in more markets throughout the United States."

• Frontier CEO Nick Jeffery called it a vote of confidence for the future of fiber.

Between the lines: Verizon has invested significantly in wireless spectrum over the last few years. But expanding its fiber infrastructure in more places could be good for that business too.

• The company has seen a higher share of cellphone customers in regions where it offers its Fios fiber broadband, consumer-division chief Sowmyanarayan Sampath told the Wall Street Journal.

By the numbers: Verizon agreed to pay $38.50 per share in cash, a 37% premium to where Frontier traded before news leaked of a pending deal.

The average annual cost of owning and operating a new car hit a new high in 2024 despite vehicle prices receding.

By the numbers: The average new vehicle costs $12,297 annually, up $115 from a year earlier, according to an annual study released today by AAA. That's $1,025 monthly.

• Five years ago, it was $9,282 annually, or less than $775 a month.

How it works: AAA includes a wide range of factors in its cost of ownership calculation, including depreciation, fuel, maintenance, insurance and finance charges.

Zoom in: The upward spiral in car insurance premiums is one notable driver in the overall increase.

• The average full-coverage policy cost $1,715 in 2024, up $127 from 2022, according to AAA.

🔍 Donald Trump said he would create an Elon Musk-inspired government efficiency commission that would audit U.S. agencies. (Axios)

🎛️ Oracle billionaire Larry Ellison will control Paramount Global after the takeover led by his son is complete. (Bloomberg)

🇨🇳 JPMorgan Chase said it no longer recommends buying Chinese stocks ahead of the U.S. election. (Reuters)

The U.S. is investigating whether major airlines have unfairly devalued customers' frequent flier points, part of a broader probe into potentially fraudulent, deceptive or anticompetitive practices.

Zoom in: U.S. Transportation Secretary Pete Buttigieg sent letters to the four largest airlines — American, Delta, Southwest and United — seeking details about how their rewards programs work.

• DOT's probe is focused on the ways consumers are affected by the devaluation of earned rewards, hidden or dynamic pricing, extra fees, and reduced competition and choice.
• Some airlines hide the dollar value of rewards points, for example, making it harder to compare the redemption price against the cash price.

What they're saying: "Points systems like frequent flyer miles and credit card rewards have become such a meaningful part of our economy that many Americans view their rewards points balances as part of their savings," Buttigieg said in a statement.

The bottom line: The investigation is the latest effort by Buttigieg's DOT to step up the pressure on airlines to protect consumers.

Go deeper

The Dallas Cowboys will probably miss the Super Bowl again this season, but the team's on-field performance doesn't seem to be affecting its off-field valuation.

Why it matters: Owner Jerry Jones' team is worth $11 billion, according to new CNBC estimates released today.

• That makes the Cowboys worth $3 billion more than the next most valuable team, the Los Angeles Rams at $8 billion.

💭 Nathan's thought bubble: The least valuable team is the Cincinnati Bengals at a paltry $5.25 billion.

• But the Bengals have better odds to win Super Bowl than the Cowboys — just another reminder that money isn't everything, kids.