Verizon to pay $72.4 million to improve West Va.'s PSTN service

Verizon's (NYSE: VZ) impending $8.6 billion rural line sale to Frontier Communications (NYSE: FTR) has one more hurdle to clear: a mandate by West Virginia's Public Service Commission (PSC) to dedicate $72.4 million to improve the state's wireline voice service. Along with the FCC, West Va. is the last state approval Verizon needs to wrap up the deal.

The West Va. PSC wants Verizon to put these funds in an escrow account to make repairs to existing copper-based network, hire more technicians and maintain existing rights of way.

Although Verizon agreed in December 2008 to update its wireline network, the PSC said that "Verizon's efforts have been neither sufficient nor consistent." Verizon, however, maintains it has stuck to its end of the deal. Since December '08, Verizon said it hired more technicians and dedicated $11.9 million to improve the state's service quality.

West Virginia has been one of the most vocal opponents of the Frontier-Verizon deal. Unions and consumer advocate groups have argued that the $8.6 billion deal would not only take jobs out of the state, but Frontier would not be able to properly maintain service levels because it would be taking on more debt than it could handle.  

For more:
- Charleston Gazette has this article

Related articles:
Give Frontier a chance
West Virginia continues to protest Verizon-Frontier deal
Frontier-Verizon deal faces regulatory showdown in W. Va.
Frontier moves on Verizon's rural lines - Top Telecom M&As for 2009
Frontier to buy Verizon rural lines for $5.25B

Suggested Articles

icrosoft took the wraps off of a new cloud service for Azure via its partnership with Genesys.

Ahead of next month's fourth quarter earnings, Windstream touted its 2019 broadband achievements this week.

Cincinnati Bell announced on Friday that it has received an unsolicited buyout bid from an "infrastructure fund" for $12 a share in cash.