TRADING POST
Verizon-Frontier merger gains approval from FCC following concessions regarding diversity, equity, and inclusion.
Verizon snags Frontier in $20 billion deal, ditching DEI efforts
Hey there! It's time to talk business, as the FCC has given the green light to Verizon's much-anticipated acquisition of Frontier Communications. This almost-20-billion-dollar deal was first unveiled last September, and it's set to close early next year.
This union adds the title of "the country's largest pure-play fiber internet provider" to Verizon's resume. The FCC, anticipating billions of dollars in infrastructure investments from the deal, settled on a series of approvals for the transfer of licenses and authorizations.
The union promises to modernize Frontier's network, upgrade its infrastructure, and boost conditions for telecom and tower crews. Brace yourself, rural America, as this deal means a brighter future for your connectivity!
Trumping DEI: A New Era at FCC
Since President Donald Trump issued an executive order eliminating DEI programs at federal agencies back in January, the FCC has followed suit. In line with this development, FCC chairman Brendan Carr axed such programs at the FCC and declared his intention to make eliminating such programs a condition for future mergers.
Don't get too comfortable though, as Carr's crosshairs don't stop at Frontier. He's been setting his sights on DEI practices at The Walt Disney Co. and Comcast as well.
"Americans stand to gain a slew of benefits from this deal," Carr announced. "We're talking about billions invested in new infrastructure across the country, the shift from aged copper networks to sleek fiber ones, and a better deal for tower and telecom crews."
Mixing Politics and Business
Carr publicly shared the Verizon letter agreeing to put an end to their DEI policies on his social media. Verizon has officially complied with the FCC's requests and ended their DEI programs, effective immediately. The FCC contends that this move promotes equal opportunity, nondiscrimination, and the public interest.
However, this opposition to DEI efforts has drawn criticism from some corners. The Communications Workers of America (CWA) argues that a union contract remains the most potent weapon for ensuring workers' rights and promoting equal opportunities.
Meanwhile, Democratic Commissioner Anna Gomez raised concerns over the approval process, saying it smelled too much like a behind-the-scenes deal that bypassed a proper Commission vote. Guess we'll have to wait and see how this drama unfolds!
- The acquisition of Frontier Communications by Verizon, worth approximately $20 billion, has earned Verizon the title of the country's largest pure-play fiber internet provider, and the FCC's approval of the deal includes billions of dollars in investments for media infrastructure.
- The FCC, under the leadership of Chairman Brendan Carr, has ended DEI programs at the FCC in line with President Donald Trump's executive order, and has made the elimination of such programs a condition for future mergers, like the one between Verizon and Frontier.
- Verizon has agreed to end their DEI programs, effective immediately, and the FCC claims this move promotes equal opportunity, nondiscrimination, and the public interest, while some critics argue that a union contract is a more effective way to ensure workers' rights and promote equal opportunities.
- The acquisition promises to modernize Frontier's network, upgrade its infrastructure, and improve conditions for telecom and tower crews, and the FCC expects billions of dollars in infrastructure investments from the deal.
- The FCC's approval of the Verizon-Frontier deal has raised concerns from Democratic Commissioner Anna Gomez, who questions whether the approval process was a behind-the-scenes deal that bypassed a proper Commission vote, and the deal's benefits, including increased investment in technology infrastructure, are being debated in the general-news arena.
