Frontier has gained the FCC's approval of its pending acquisition of AT&T's (NYSE: T) local wireline network in Connecticut, clearing one of its largest regulatory hurdles to complete the $2 billion deal.
The service provider is still working to get the approval from the Connecticut Public Utilities Regulatory Authority (PURA) and has already received Justice Department approval.
Pending PURA approval, the service provider expects to close the Connecticut acquisition in the fourth quarter of this year.
"We are pleased that the FCC Chairman and Commissioners moved swiftly to support this acquisition, releasing an Order well in advance of the FCC's internal deadline for review of such transactions," said Maggie Wilderotter, Frontier's chairwoman and CEO, in a release. "We look forward to demonstrating our broadband commitment to our home state of Connecticut, our headquarters since 1946."
Upon completing the acquisition, Frontier said it would offer up to 10 Mbps broadband speeds to 100,000 potential customers that don't have that speed option today while upgrading its middle mile fiber-based network. It will also continue to support the AT&T U-verse video service.
Besides receiving FCC and Justice Department approvals, the acquisition gained the support of the Communications Workers America (CWA) labor union.
Earlier this month, CWA 1298 President William Henderson III said he supports the AT&T acquisition. Initially, the CWA opposed the deal, arguing that the service provider did not provide enough information to the FCC to review it.
- see the release
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