Frontier Communications has received Federal Trade Commission (FTC) approval for its pending acquisition of Verizon's wireline operations in California, Florida and Texas, clearing one of the initial hurdles to complete the deal.
The FTC has granted early termination of the required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. Initially announced in February, the expiration of the required waiting period under the act satisfies one of the conditions of the completion of the transaction.
However, Frontier still has to gain approvals from the FCC and state public utility commissions in California, Florida and Texas. Frontier expects the sale to close in the first half of 2016.
Similar to its acquisition of AT&T's Connecticut assets and its earlier acquisition of Verizon's rural assets in 14 states, this deal is also transformational. When it completed its 2010 Verizon acquisition, Frontier converted 13 GTE platform states onto its own system. Later, in 2014 Frontier completed its acquisition of AT&T's wireline assets in Connecticut--one that enhanced Frontier's presence in the state, including the addition of U-verse video and broadband services to its portfolio.
A key point of the Verizon deal for Frontier is also about scale. By buying Verizon's assets in these three states, the telco will gain 3.7 million voice connections; about 2.2 million broadband customers, including about 1.6 million FiOS Internet customers; and approximately 1.2 million FiOS Video customers.
- see the release
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