California Challenges FCC by Imposing DEI Conditions on Verizon-Frontier Merger

Rowan Ashford

ago 2 hours

California Challenges FCC by Imposing DEI Conditions on Verizon-Frontier Merger

Verizon has secured all necessary approvals for its $9.6 billion acquisition of Frontier Communications, which serves approximately 3.3 million broadband customers across 25 states. The merger is expected to finalize on January 20, following a unanimous 5–0 vote from the California Public Utilities Commission (CPUC).

California’s Role in the Verizon-Frontier Merger

The final approval from the CPUC came after months of negotiations that culminated in a range of conditions aimed at enhancing diversity, equity, and inclusion (DEI) efforts. These conditions were necessary due to previous demands that led Verizon to abandon certain DEI initiatives.

Implementation of DEI conditions in the merger.
Requirement to deploy more fiber and wireless infrastructure.
Provision of a $20-per-month Internet service for low-income residents for the next decade.

According to the CPUC, this approval was influenced by significant public involvement and discussions with consumer advocates and labor organizations.

Financial Overview of the Deal

The merger deal, which Verizon initiated with Frontier in September 2024, is valued at a total of $20 billion when considering Frontier’s existing debt exceeding $10 billion. The acquisition will allow Verizon to enhance its market presence, expanding its reach to nearly 30 million fiber-passings across 31 states and Washington, D.C.

Verizon’s Commitment to Network Expansion

As part of this acquisition, Verizon is also focusing on revitalizing its broadband offerings. Notably, this includes reclaiming parts of its network sold to Frontier nearly a decade ago. In 2016, Frontier acquired Verizon’s FiOS and DSL services in key states like Florida, California, and Texas.

Verizon plans to deploy fiber to 75,000 new locations in five years.
Areas targeted will include census blocks where incomes are at or below 90% of the county median.
Deployment of 250 new cell sites with 5G capabilities in high-need areas.

Commissioner John Reynolds emphasized the importance of these commitments during the CPUC meeting. The merger not only seeks to enhance Verizon’s competitive edge but also aims to ensure that underserved communities benefit from improved broadband access.