Frontier Communications got a favorable ruling from the California Public Utilities Commission to purchase Verizon Communication’s FiOS network, as well as other local wireline, broadband and video operations in California.
“As we have publicly stated in all our filed testimony, we look forward to the opportunity to increase our presence in California and bring investment, jobs and increased broadband availability to consumers across the state, in both urban and rural markets,” Kathleen Abernathy, EVP of external affairs at Frontier Communications, said.
Frontier has already received approval from the Federal Communications Commission and the Justice Department to go ahead with the acquisition. In September, the FCC gave approval for Frontier to acquire Verizon Communication wireline network assets in California, Texas and Florida for $9.9 billion. The ruling by the CPUC is still just a proposed decision. The rural carrier and other interested parties will now file comments before the final ruling comes down on or before Nov. 20.
“If this transaction is ultimately approved by the full CPUC and the transaction closes, California will benefit from millions of dollars of investment throughout the state, especially in unserved rural areas,” Abernathy added. “Frontier is excited to bring our high-touch local engagement management model as well as our active involvement in the communities we serve to the cities that are part of this transaction.”
Frontier expects the transaction to close by the end of the first quarter of 2016.
The three-state deal approved by the FCC earlier this year includes 3.7 million voice connections; approximately 2.2 million high-speed data customers; approximately 1.6 million FiOS Internet customers; and approximately 1.2 million FiOS video customers.
The deal also includes Frontier taking on 11,000 Verizon Communications employees as part of the transaction. The deal will not include assets related to Verizon Communications’ wireless or enterprise business.
Under terms of the agreement, each carrier has committed to bring broadband speeds of at least 10 megabits per second to 7.3 million rural customers over the next six years. Each carrier will need to buildout 40% of funded locations by the end of 2017, 60% by the end of 2018 and 80% by the end of 2019, reaching completion in 2020.
