Local customers to see new Frontier in Verizon sale
Published 5:00 pm Wednesday, May 26, 2010
- Local customers to see new Frontier in Verizon sale
Frontier Communications Corp. of Stamford, Conn., is poised to become Wallowa County’s new landline telephone company.
Frontier, which concentrates on rural phone, Internet and cable TV customers, has received all necessary regulatory approvals to purchase Verizon landline operations in 14 states including Oregon.
The companies expect to close the transaction July 1. They had filed an application with the Federal Communications Commission a year ago, citing Verizon’s desire to concentrate on urban areas and its other enterprises including cell phone service.
FCC approval came on May 21 following intense scrutiny after objections to the deal were raised. Objectors cited earlier Verizon spinoffs, one of which resulted in the purchasing company taking on so much debt to make the purchase that it went bankrupt. They also questioned Frontier’s ability and willingness to expand Internet broadband service in rural areas.
Commissioners and the Oregon Public Utility Commission responded by inserting broadband requirements in their approvals.
Frontier will have to offer broadband to 85 percent of the 4.8 million newly acquired customers by 2013 and faster broadband by 2015.
Additionally, Frontier will extend fiber-optic communications to libraries, hospitals and other institutions in these states and continue to provide wholesale service to competing phone companies.
Frontier will pay $8.6 billion for operations in Arizona, California, Idaho, Illinois, Indiana, Michigan, Nevada, North Carolina, Ohio, South Carolina, Washington, West Virginia and Wisconsin in addition to Oregon.
“This is a truly transformational transaction for Frontier,” said Maggie Wilderotter, Frontier’s chairwoman and CEO. “With more than 7 million access lines in 27 states, we will be the largest provider of voice, broadband and video services focused on rural to smaller city markets in the United States.
“Frontier is committed to providing our customers with state-of-art technology and innovative products. We are confident that we can dramatically accelerate the penetration of broadband in these new markets. We know that broadband is a catalyst for a healthy local economy and job growth.”