dbeard@dominionpost.com
MORGANTOWN – As Verizon pursues its plan to acquire Frontier Communications, state Public Service Commission staff have made the PSC aware of some concerns regarding the transaction in West Virginia.
PSC utilities staff didn’t come out for or against the proposal in an initial memo filed wihthte PSC, but noted several areas of concern.
Staff said these are some of the issues:
- The lack of copper infrastructure maintenance [for phone lines] while the fiber network [for broadband] is being built;
- The lack of reliability in the West Virginia E911 network;
- Extended customer out of service situations in the copper network;
- Lack of timely and complete responses to requests by the commission;
- Pole-related issues including the pole attachment process;
- Discontinuance of offering DSL in areas that have no other internet options;
- Missed appointments and appointments with extended date dues.
Utilities staff said it has made Verizon and Frontier aware of the issues. Legal staffed agreed with the Utilities staff findings and said it will continue to review the case and may further recommendations as needed.
Verizon announced in early September that is working to acquire Frontier’s national operation in a deal valued at $20 billion.
Back in 2010, the PSC approved Frontier’s purchase of Verizon’s landlines. Currently, Frontier West Virginia and Citizens Telecommunications Company of West Virginia (another Frontier subsidiary) serve about 225,000 lines in the state.
The companies filed with the PSC for the Ok for the transaction in West Virginia on Oct. 31. “West Virginia will greatly benefit from the transaction,” they said. “Verizon possesses the financial standing and expertise necessary to optimize the Frontier fiber and copper network.”
The October PSC filing said Frontier faces obstacles to its continued growth and long-term competitiveness.
After emerging from its bankruptcy in 2021, they said, Frontier shifted to a fiber-first strategy and targeted passing 10 million locations with fiber by 2026, but incurred a significant amount of indebtedness as a result – about $12 billion.
“These debt obligations may place a significant strain on Frontier’s ability to make additional investments in its network going forward. Specifically, its current debt level will impact Frontier’s ability to obtain additional debt or equity financing on favorable terms.”
Frontier also faces competitive challenges, they said. The competitors can offer lower prices and bundled wireless packages that Frontier doesn’t provide.
“Verizon is committed to honoring Frontier’s important work in expanding broadband,” they said. “The transaction will ensure that Frontier’s current planned buildout is completed (if not completed by closing) and provide financial resources to consider future fiber deployment.”
The PSC has said it gets many complaints about the quality of Frontier’s phone service and in the October filing Verizon said it understands the PSC’s concerns. “Verizon’s intent is to listen to these concerns and be responsive to these problems. In the nearly 15 years since Verizon left the state as an incumbent wireline provider, it has made major changes to its approach to customer service.”
An additional carrot they offered in their filing is meeting the needs of low-income consumers, offering
Verizon service plans to current Frontier customers, including a national low-income broadband plan and bundled service options.
The PSC has not set a deadline for a decision. It issued then rescinded an order for a ruling by an administrative law judge by May 29, 2025. The companies said they expect to finalize the national transaction within 18 months.
