Frontier Completes Verizon California, Florida, Texas Acquisition
Frontier Communications completed its $10.5 billion buy of Verizon wireline operations in California, Florida and Texas, Frontier said Friday. The acquired businesses include about 3.3 million voice connections, 2.1 million broadband connections and 1.2 million Fios video subscribers across the…
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three states. The buy also includes a transfer of 9,400 employees. New customers will start receiving monthly bills in mid-April, Frontier said. After the deal’s announcement Feb. 5 last year, Frontier and Verizon received approval from the FCC, DOJ and utility commissions in California and Texas (see 1512030059). The deal "significantly expands our presence in three high-growth, high-density states, and improves our revenue mix by increasing the percentage of our revenues coming from segments with the most promising growth potential," Frontier CEO Daniel McCarthy said. Wells Fargo analyst Jennifer Fritzsche said that for Frontier, “the focus now turns to successfully integrating the systems and assets.” It’s good timing for Verizon, she said, because it brings in pretax capital to the company’s balance sheet just as the company enters the FCC broadcast incentive auction.