Verizon to Double Investment in Boston to $600M

BOSTON—Verizon, which announced in August plans to lease more than 450,000 square feet of space at The Hub on Causeway, says it will spend approximately $600 million to expand its operations here and transform Boston into a digital city of the future.

In 2016, Verizon announced a six-year deal to spend $300 million to bring fiber optic technology to Boston. Today, the telecommunications firm and the city announced a mew $10-year, $600-million deal that will expand its local wireless network, bring Fios Internet and TV to the city’s remaining neighborhoods not covered in the original franchise agreement, and collaborate with Boston on Smart Communities solutions.

The company also offered some specifics on its lease deal that now totals more than 450,000 square feet at The Hub on Causeway, a property owned by Boston Properties and Delaware North that is slated for completion in 2021.

“Our partnership with Verizon reflects one goal: to make sure all of Boston’s residents have access to the most advanced digital technology both now, and in the future,” says Boston Mayor Martin Walsh. “We’re making sure Boston is the best digital city in the nation, and through partnerships with companies like Verizon, residents will have better, more affordable options, as we work together to create inclusive growth for our city.”

“The City of Boston has been a tremendous partner for us, and a great leader in building the digital city of the future,” says Kyle Malady, chief technology officer of Verizon. “Together we’re creating a platform of innovation with the latest technology that will benefit Boston residents, businesses, universities, first responders and visitors for decades to come.”

In terms of its service expansion, the new 10-year agreement will require Verizon to significantly expand its wireless small cell network to bring more speed and capacity to its existing 4G LTE network and to pave the way for the eventual deployment of 5G services in Boston.

The City of Boston will provide Verizon with a streamlined permitting process for the installation of new small cells. Verizon will provide a host of Smart Communities products and services that will enable Boston to achieve efficiencies in areas such as traffic management, safety and energy efficiency.

Verizon and the City of Boston are also amending the existing TV license agreement to expand Fios TV services. More than half the homes in Boston now have access to the all-fiber network, and Fios service is available in Dorchester, Hyde Park, Jamaica Plain, Mattapan, Roslindale, Roxbury, Seaport, South Boston and West Roxbury. The new amendment will enable Fios TV expansion as the fiber network is built in South Boston, South End, Allston, Brighton, Back Bay, Charlestown, East Boston, Fenway and Downtown.

Verizon says it will be contributing $1 million to the Boston Digital Equity Fund to help support programs that provide affordable access to broadband to underserved residents.

In terms of its major lease at The Hub on Causeway, Verizon will occupy 16 floors, five of which will be reserved for incubators, accelerators and partners. These activity-based workplace floors will feature multiple types of working environments to foster creativity, innovation and collaboration among teams. Verizon says its commitment at the property will help transform the development into a technology hub.

Powered by next-generation Verizon network services, experiential amenities at The Hub on Causeway will feature a variety of entertainment and food options, including a large live music venue, a sports bar, a food hall, a full-service grocery store and a 15-screen cinema available for private events.

The 31-story Hub development will also include a new hotel and a 440-unit luxury residential tower. Verizon’s lease is for the top floors of what will be the tallest office building built in Boston in two decades.

“Boston is an epicenter of tech talent and The Hub will be the ‘next workplace,’” says John Vazquez, Verizon’s senior vice president of global real estate and supply chain. “We are helping spur innovation by prioritizing Boston and its vast resources as the place where future technologies are being developed.”

Verizon plans to expand ties with leading universities across the river in Cambridge, and throughout the Boston area, to attract top talent who specialize in new and emerging technologies.

The Hub’s roof deck will include a unique meeting space for groups and organizations to hold functions, social gatherings and meetings. The Verizon Foundation will also utilize the space to host programs and events related to teacher training, STEM curricula and connectivity to under-resourced students.

“We want an environment that goes beyond a traditional meeting spot and creates a perpetual destination for the tech community, transcending the ideology of the office by welcoming organizations, entrepreneurial companies and individuals to enjoy the amenities we have to offer,” Vazquez notes.