Frontier Communications has received the FCC's approval for its proposed acquisition of Verizon's (NYSE: VZ) wireline operations in California, Florida and Texas, clearing an important federal hurdle to complete the company-changing deal.
Before it completes the acquisition, which Frontier expects to do in the first quarter of 2016, the service provider still needs approval from the California Public Utilities Commission and the Public Utilities Commission of Texas.
Frontier also has received Hart-Scott-Rodino federal antitrust clearance.
Upon closing the deal, Frontier will enact an ambitious plan to bring up to 25 Mbps broadband speeds to an additional 750,000 households across its entire multi-state footprint, including California, Florida and Texas, by the end of 2020.
"By doubling our size, we will add scale and scope to our operations, strengthen our product and service offerings, and improve the customer experience," said Dan McCarthy, CEO of Frontier, in a release.
A large portion of this build will leverage the $283 million in annual Connect America Fund (CAF-II) support that the provider accepted from the FCC that it says will enable it to build out broadband service to over 650,000 rural locations.
Within these three states, Frontier will also use the CAF-II funding to deliver 10/1 Mbps to about 77,000 rural locations in California and nearly 37,000 homes in Texas.
These builds will include a mix of FTTH and emerging copper-based technologies such as ADSL2+ and VDSL2 with bonding.
Pending the completion of the acquisition, Verizon said in a recent FCC filing that it conditionally accepted the CAF-II offer of $32 million in California and a $17 million annual amount in Texas. When the acquisition is complete, Verizon, which turned down $144 million in CAF-II support, said it will transfer over these funds to Frontier.
- see Verizon's release
- and Frontier's release
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