West Virginia will not only be the first market Frontier (NYSE: FTR) will transfer onto its own systems from its purchase of Verizon's (NYSE: VZ) rural phone lines. The state will also be the target of a $310 million network investment.
During a press conference at the state capitol in Charleston, West Va., Governor Joe Manchin said that the ILEC's investment "truly shows Frontier's commitment to West Virginia and its desire to bring the highest level of services to our citizens."
Spread over three and a half years, Frontier's investment will consist of spending $30 million this year, $85 million in 2011, $73 million in 2010 and $74 million in 2013. The $74 million portion of the investment will focus on improving PSTN service quality as mandated by Virginia PSC. Another $48 million will be spent on broadband deployment by the end of 2013.
Already, Frontier is making a move on its broadband ambitions as it signed a deal with ADTRAN (NasdaqGS: ADTN) to expand its Fiber to the Node (FTTN) network footprint throughout West Va.
Frontier's latest investment is not just about technology alone. Members of the Workers of America, District 2 (CWA) union are also smiling today as Frontier said it would employ about 2,000 employees in West Va. CWA members that worked in Verizon's West Va. territory have been the most vocal opponents of the sale to Frontier, arguing that the deal would cause service disruptions and lost jobs.
For more:
- see the release here
- The State Journal has this article
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