Frontier moves on Verizon's rural lines - Top Telecom M&As for 2009

Frontier Communications has set a lofty goal for itself: become the fifth largest ILEC in the U.S. To do that the ILEC is acquiring 4.8 million rural access lines from Verizon in 14 states for a cool $5.25 billion in stock. 

When the deal gets all of the necessary state and federal approvals, Frontier is set to become the largest rural telco in the U.S. even though CenturyTel has more lines, but those are in larger areas. 

In the process of buying the lines, 11,000 Verizon workers will turn in their Bell threads for new Frontier duds. Finishing off the deal won't be easy. Well, at least gaining the public's trust and preventing a mass exodus to cable won't be easy. Unfortunately, because Frontier's proposed acquisition of Verizon's lines follows the failures of both Hawaiian Telcom and FairPoint Communications to effectively integrate their lines operate them successfully, local regulators, industry groups and unions have mounted their protests already. 

No worries, says cable operators in Frontier's yet to be acquired regions, who are wasting no time in wooing over concerned customers. 

Amidst all of the protests and concerns that the deal will be another FairPoint debacle, Frontier, which has gotten three state approvals for the deal, is confident it will go through in 2010.  

Frontier moves on Verizon's rural lines - Top Telecom M&As for 2009
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