California Clears Verizon’s $20 Billion Frontier Acquisition After Service Expansion Pledges
GeokHub
Sacramento | Jan 15 — GeokHub California regulators have approved Verizon Communications’ $20 billion acquisition of Frontier Communications, removing the final regulatory hurdle and allowing the deal to close as early as next week.
The California Public Utilities Commission (CPUC) said its approval was contingent on a series of commitments from Verizon aimed at expanding broadband access, particularly in underserved and rural communities across the state.
Rural Expansion and Low-Income Access
Under the agreement, Verizon has pledged to invest in 75,000 new fiber-optic connections and construct 25 additional wireless towers in rural parts of California. The company also committed to expanded broadband deployment requirements and will provide free broadband service to eligible low-income households for at least 10 years.
Regulators said Verizon will also step up its engagement with tribal communities, improving access to high-speed internet in areas that have historically lacked reliable connectivity.
Verizon Sees Strategic Turning Point
Verizon Chief Executive Dan Schulman described the approval as a key moment in the company’s long-term strategy.
“This marks a major milestone in Verizon’s transformation and positions us to deliver a stronger combination of mobility and fiber services across a much larger footprint,” Schulman said, adding that the deal will enhance offerings for mobile users, home internet customers, and businesses.
Regulatory Scrutiny and Policy Conditions
The acquisition had drawn attention at both state and federal levels. Federal regulators previously approved the deal after Verizon agreed to make changes to its internal diversity and inclusion programs, an issue that had drawn political and regulatory scrutiny.
California officials said the final settlement aligns with state public policy goals, including workforce development and supplier diversity, and includes a $10 million partnership with the California State University system.
National Expansion Plans
Verizon agreed to acquire Frontier in late 2024, combining a cash purchase with the assumption of Frontier’s debt. The deal will allow Verizon to expand and upgrade Frontier’s existing fiber network across 25 U.S. states, with plans to bring high-speed fiber service to one million or more homes each year.
