Texas PUC OKs Frontier/Verizon Deal
One more roadblock was removed Friday as the Texas Public Utility Commission approved during its meeting Frontier Communications’ and Verizon's joint application to amend the certificate of operating authority transferring Verizon wireline holdings to Frontier. It's the only Texas regulatory approval needed for Frontier’s proposed acquisition of Verizon's wireline networks in California, Florida and Texas and follows a recent FCC OK (see 1509030063). While there weren’t any intervening parties in docket No. 44630, one association hoped the deal would be approved with a few more conditions. The two companies are now waiting only on approval from California authorities (see 1509090062).
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Texaltel, an association of telecom carriers in Texas, would have liked conditions on the deal, said Charles Land, executive director. He said Texaltel would have liked Frontier to be required to keep interconnection agreements and that it would have to be a “little more friendly to competitors than Verizon.” Now, members are waiting to see what happens next, Land said. “We’re going to hold our breaths and see what happens.”
Crown Castle issued comments expressing concern about the transaction leading to delays or other difficulties in the completion of pole attachments. Because of the reduced authority the Texas PUC has over telecom services, the comments weren't taken into consideration, said the PUC spokesman. Crown Castle recommended conditions saying Frontier should be required to honor all existing pole-attachment agreements; provide sufficient internal resources to ensure it can honor its pole-attachment obligations under the agreements and applicable federal and state law; and not erect any competitive barriers to the further deployment of competitive broadband networks in the state.
Frontier will offer California, Florida and Texas customers its full portfolio of products and services, including broadband, wireline local and long distance voice, video viewing options, and innovative products and services such as Frontier Secure, said a news release from the company Friday. FiOS customers in these markets will continue to receive the same products and services they have had under Verizon, Frontier said. In addition, the company has committed to delivering broadband to an additional 750,000 households at speeds of 25 Mbps/2-3 Mbps across Frontier’s 28-state footprint, including California, Florida and Texas, by the end of 2020, it said. "We anticipate that the transaction will close at the end of the first quarter of 2016 and we look forward to providing excellent products and services to customers in Texas, California and Florida,” said Kathleen Abernathy, Frontier executive vice president-external affairs. “We continue to participate in the regulatory review process in California.”
Looking forward at the pending approval in California, Abernathy said Verizon’s FiOS infrastructure there is robust, reliable, fast and embraced by customers. The company is confident that it will be able to manage and run that network, despite some concerns that have been publicized by consumer advocates in the state. "We have publicly stated our intent to invest in and improve infrastructure across the more rural, high costs parts of the state," Abernathy said. "Our prior experience integrating the Verizon properties in 2010, and more recently the AT&T properties in Connecticut, demonstrates our knowledge and expertise and it is this expertise that we will bring to bear as we introduce our local management philosophy to the California customers.”
Verizon said only that it appreciates the “timely approval” of the deal in Texas. The California PUC is to vote on the transaction Dec. 3.