Verizon has finalized its $20 billion deal to acquire fiber internet provider Frontier, following approval from the Federal Communications Commission (FCC). The merger will allow Verizon to upgrade and expand Frontier’s existing fiber networks. As part of the agreement, Verizon has committed to ending discriminatory Equity, Diversity, and Inclusion (DEI) practices.
Verizon is reacquiring some of its fiber business that was sold to Frontier in 2015. The company expects to bring high-speed internet to approximately 1 million homes each year after the acquisition. This move is seen as an expansion of Verizon’s fiber network, enabling it to reach more communities, including rural areas.
The FCC approved the merger despite concerns over Verizon’s past handling of DEI policies and practices. In response to these concerns, Verizon has outlined its plan to remove references to DEI from employee training materials, disband HR teams focused on diversity initiatives, and revise public messaging. The company’s consumer chief had stated in a recent appearance that it would not fight regulatory requirements related to diversity initiatives.
The merger comes after T-Mobile similarly closed its acquisition of fiber provider Lumos due to changes made by the company regarding DEI mentions on its website. The Biden-era BEAD initiative aimed to pay fiber providers to bring high-speed internet to rural areas, but reports suggest that funding is not flowing as expected.
Source: https://www.theverge.com/news/668614/verizon-frontier-acquisition-fcc-approval