US telco regulator Federal Communications Commission (FCC) has given its approval to Verizon Communications’ acquisition of Frontier, a merger deal that’s worth $20 billion. The authority gave its permission on the deal after Verizon made a commitment to let go of DEI (Diversity, Equity, and Inclusion) plans.
FCC Chair Brendan Carr said that by approving the deal, “FCC ensures that Americans will benefit from a series of good and common-sense wins. The transaction will unleash billions of dollars in new infrastructure builds in communities across the country.”
The approval comes after some efforts from Verizon. In February, Carr had remarked that he was opening a probe of Verizon’s promotion of DEI programs. He said that it could have been a key aspect in the deal with Frontier.
In response, Verizon wrote to Carr that the company was removing its Diversity and Inclusion website and references to DEI from employee training and etc. It maintained that the provisions will also apply to Frontier when the deal is made.
Regarding the deal, Verizon senior vice president Kathy Grillo said that it will be in a great position to provide customers with world-class fiber and wireless internet services to the customers.
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FCC allows Verizon-Frontier expansion
FCC has also approved Verizon’s plan to upgrade and expand Frontier’s service in 25 states, which will promote digital inclusion in the country. Verizon will deploy a fiber internet network to over a million households annually.
“Verizon recognizes that some DEI policies and practices could be associated with discrimination,” said Verizon’s chief legal officer, Vandana Venkatesh.
With the merger with Frontier, Verizon could not just expand fiber to millions of American homes, but also compete and even surpass AT&T fiber.