November 29 – dbeard @dominionpost.com MORGANTOWN – As Verizon moves forward with its plan to acquire Frontier Communications, Public Service Commission officials have notified the PSC of some concerns regarding the West Virginia transaction.
PSC utility staff did not speak for or against the proposal in an initial memo filed with the PSC, but did raise several concerns.
The staff said these are some of the issues:
— The lack of maintenance of the copper infrastructure [for phone lines ] while the fiber optic network [for broadband ] is being built;
— The lack of reliability in the West Virginia E911 network;
— Extensive customer field service situations in the copper network;
— Lack of timely and complete responses to committee requests;
— Pole-related issues, including the rod attachment process;
— Stopping the provision of DSL in areas where there are no other internet options;
— Missed appointments and appointments with extended date contributions.
Utility officials said it has notified Verizon and Frontier of the problems. The Legal Department agreed with the utility’s findings and said it will continue to review the matter and make further recommendations as necessary.
Verizon announced in early September that it is working to acquire Frontier’s national operations in a deal worth $20 billion.
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) operate approximately 225,000 lines in the state.
The companies filed with the PSC on Oct. 31 for approval for the West Virginia transaction. “West Virginia will benefit greatly from the transaction,” they said. “Verizon has the financial strength and expertise needed to optimize the Frontier fiber and copper network.”
According to the October PSC filing, Frontier faces obstacles to its continued growth and long-term competitiveness.
After emerging from bankruptcy in 2021, Frontier shifted to a fiber-first strategy and aimed to bring fiber to 10 million locations by 2026, but in doing so incurred a significant debt burden: approximately $12 billion.
“These debt obligations could place significant pressure on Frontier’s ability to make additional investments in its network in the future. In particular, current debt levels 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 does not offer.
