Verizon, Frontier Deal Still Faces State Hurdles and Some Public Backlash
Now that the FCC has approved Verizon's proposed acquisition of Frontier (see 2505160050), the deal is under mounting scrutiny in states including California and West Virginia, where initial public comments are running against the deal. Utah, Nevada, Virginia and Texas have already given their OK.
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With the California Public Utilities Commission set to host a series of public hearings on the deal in-person and virtually through July, an overwhelming majority of advance comments opposed it. Many warned it could lead to regional monopolies and higher prices or worse service. Others shared personal negative experiences with Verizon and noted that the company previously sold the Frontier assets it's now trying to buy back. Some also expressed concern about access in rural and underserved areas.
Regina Costa, The Utility Reform Network's director-telecom policy, told us people are "pretty skeptical" about the proposed merger, partly because "Verizon has not really provided enough information" about it. She said the assets Verizon wants to acquire are previously owned landline systems that were "in terrible condition."
"We do not need monopolies," wrote commenter Raquel Brac of Redlands, California. Riley Sholes of Sacramento asked the commission to reject the merger "to provide more competition in the market." The acquisition "threatens to create a less competitive market with a dominant player known for subpar customer support," said Jordi Diaz of Chino.
The West Virginia Public Service Commission (PSC) will hear public comment June 11 at 4 p.m. and hold an evidentiary hearing June 12 at 9:30 a.m. Frontier Senior Vice President-Business Development Allison Ellis said in testimony to the PSC earlier this month that approving the deal will "bolster Frontier's ability to maintain and improve the quality and scope of services it delivers despite the ongoing loss of legacy telephone service revenues and the high cost of serving many of its remaining telephone customers."
Meanwhile, in Connecticut, regulators have released a draft final decision approving the acquisition. A final decision is tentatively scheduled for June 11, in which the Connecticut Public Utilities Regulatory Authority will include the terms of a settlement agreement between the companies and the Connecticut Office of Consumer Counsel (see 2505120063).