(Bloomberg) – Verizon Communications Inc. Won Federal Communications Commission Approval for Its $ 9.6 Billion Acquisition of Frontier Communications Parent Inc. After Agreeing to Agency Demands to Pare Back Diversity Initiatives in Line with President Donald Trump’s Policies.
The deal “will unleash bills of dollars in new infrastructure builds in communities across the country – Including Rural America,” FCC Chairman Brendan Carr Said in a statement on friday. “This investment will accept the transition away from old, copper line networks to modern, high-speed ones.”
The transaction values the dallas-based company at $ 20 billion, include debt.
The Approval Marks One of the first deals to get the green light underman carr, who had Threated to Block Mergers Unless Companies Rolded Back What He Called “Invidious” Diversity, Equity and Invisions ” Practices. Carr sent a letter to verizon in February warning the company that its dei efforts run Afoul of Trump Administration Directives. Carr Told the New York-Based Telecom Carrier to End Its Promotion of Dei in Corporate Values and Training Materials.
Trump has ben pushing to root out such policies from the federal government, corporate america and beyond, Issuing executive orders banning the prades and asking agency heads to idncy heads to Identify Targets, Including Listed Companies, to Investigate for “Illegal dei” efforts.
Verizon Committed to Ending Some Practices and have reaffed a commission to equal options and nondiscrimineation, the fcc said in its statement. “This will ensure that the combined business will enact policies and practices consistent with the law and the public interest.”
In a may 15 letter to carr, verizon said it was shutting down its dei team and reassigning staffers and removing references to it from corporate manuals. The company will no longer set diversity goals or participate in Surveys Tracking Theose Characteristics.
The FCC Approval Paves the way for the biggest us phone company to expand its high-speed internet business. It will allow verizon to upgrade and expand frontier’s existing network in 25 states, according to the FCC.
Telecommunications Companies like Verizon have been bulking up on fiber-optic assets to add capacity for customers’ sugging data use. The flow of data is expected to increase further as more companies adopt artificial intelligence.
The deal combines frontier’s fiber network with verizon’s portfolio of fiber and wireless assets, include its fios offering. It also brings back some assets that Verizon Sold to Frontier in 2015 for $ 10.54 Billion.
Frontier Filed for Chapter 11 Bankruptcy in 2020 after Years of Losses in Its Wireline TELECOM BUSINESS LED to Balloning Debt. It emerged from bankruptcy the following year and focused on building out its fiber network to better compte against against against cable and wireless companies.
Over about the past four years, frontier has invested $ 4.1 billion upgrading its network and replacing antiquated copper lines. Now, The Company Derives More than Half of Its Revenue from Fiber Products.
Following the transaction, verizon expects to deploy fiber to 1 million or more us homes annual, according to the fcc statement.
(Updates with Verizon dei Letter in Seventh Paragraph.)
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