Verizon, Frontier to complete $10B merger after approvals from FCC and states

Verizon has successfully obtained all necessary approvals for its acquisition of Frontier Communications, valued at $9.6 billion. This Internet service provider boasts approximately 3.3 million broadband customers across 25 states. The merger is set to be finalized on January 20, following the California Public Utilities Commission's (CPUC) unanimous endorsement in a recent 5-0 vote. The approval process has been extensive, involving months of negotiations that resulted in several commitments from Verizon. These include plans to enhance fiber and wireless infrastructure and to provide affordable $20-per-month Internet service for low-income individuals over the next decade. Additionally, the agreement includes measures aimed at replacing diversity, equity, and inclusion policies that were previously discarded under pressure from the Trump administration. In a statement, the CPUC highlighted that this endorsement followed significant public engagement, testimony from various stakeholders, and negotiated settlements with consumer advocacy groups and labor organizations. Verizon initially struck the deal with Frontier back in September 2024, agreeing to pay $9.6 billion in cash while also assuming more than $10 billion in Frontier's debt. The entire cash transaction, when factoring in the debt, is valued at around $20 billion. Upon completion of the merger, Verizon anticipates that the combined company will extend its reach to nearly 30 million homes with fiber optics across 31 states, including Washington, DC. The company's focus on its home Internet business has fluctuated over the years, but there is a clear commitment now towards expanding fiber and fixed wireless services. Notably, this acquisition involves Verizon reacquiring parts of its network that it had sold to Frontier nearly a decade ago. In 2016, Frontier purchased Verizon’s FiOS and DSL operations in states like Florida, California, and Texas. During the CPUC meeting, Commissioner John Reynolds outlined Verizon's commitments, which include deploying fiber to 75,000 new locations within five years, specifically prioritizing areas with income at or below 90% of the county median. Furthermore, Verizon is required to establish 250 new cell sites equipped with 5G and fixed wireless capabilities in areas eligible for state broadband grants and those at high risk of fire hazards.