FCC Approves Frontier Acquisition of Verizon's California, Florida and Texas Wireline Assets

The Federal Communications Commission (FCC) has granted approval to Frontier Communications to go through with its acquisition of Verizon's local wireline, broadband and video operations in California, Florida and Texas. 

The FCC will not impose conditions on the sale because, the agency said, the transfer of ownership is "likely to result in public interest benefits of increased investment in the local networks facilities and broadband services." Prior to the FCC's approval, Frontier committed to bring high-speed Internet at 25/2 Mbps speeds to 750,000 additional households over the next five years. Over the last five years, the company increased broadband access for 85 percent of the households in its then newly-acquired property areas. 

Frontier will use the money it recently accepted from the FCC's Connect America Fund to build broadband to an additional 77,000 households in California and an additional 37,000 households in Texas. Altogether Frontier has committed to expand broadband to 477,000 California households that do not have broadband. 

In its order, the FCC noted that Frontier is more likely to invest in broadband expansion and service upgrades in the acquired territories than Verizon would be. The FCC also acknowledged support from CWA for the deal which the union said would promote good jobs, broadband expansion and service improvements. 

Before the sale was approved, Frontier reached agreements with CWA in California and Texas. The company agreed to extend current collective bargaining agreements, add more than 200 new union jobs in California, Texas and Missouri, and has committed to employ a 100 percent U.S.-based workforce. 

The California Public Utilities Commission is continuing its review of the transaction with a decision expected before the end of this year.