Judge advises against Verizon-Frontier deal

10 Mar 2010

Administrative law judge Lisa M Tapia has advised state regulators to not approve a deal which will see Verizon divest operations in 14 states to Frontier Communications in a deal worth USD8.6 billion. As reported by CommsUpdate, the deal, which will see fixed line service for a total of 4.8 million customers change hands, was agreed between the two parties in May 2009 but has been awaiting regulatory approval for the best part of a year. Tapia told regulators that evidence presented in the case in front of the Illinois Commerce Commission did not support the sale, primarily because the transaction would leave Frontier too laden with debt to be able to properly manage the lines and other infrastructure. She added: ‘The proposed reorganisation will diminish Frontier’s ability to provide adequate, reliable, efficient, safe and least-cost public utility service.’