CHARLESTON, W.Va. — Verizon and Frontier Communications are asking the state Public Service Commission to allow Frontier to transfer control of the company to Verizon in West Virginia.
It would be a reversal of what happened nearly 15 years ago when Frontier purchased Verizon’s landline operations in the Mountain State.
“West Virginia will greatly benefit from the Transaction,” Thursday’s filing said. “Verizon’s recognized leadership in building and deploying cutting-edge networks and its commitment to prioritizing consumer choice while serving local communities will benefit West Virginia consumers.”
The companies announced plans to merge nationally last month with Verizon being the controlling company. The transaction includes Frontier West Virginia.
Thursday’s filing said Frontier has incurred significant debt after employing a “fiber first” strategy after emerging from bankruptcy in 2021.
“These debt obligations may place a significant strain on Frontier’s ability to make additional investments in its network going forward,” the filing said. “Specifically, its current debt level will impact Frontier’s ability to obtain additional debt or equity financing on favorable terms. This will make it harder for Frontier to keep investing in fiber at the level necessary to compete and meet the needs of its customers; particularly, it places Frontier at a competitive disadvantage with respect to competitors with less debt or competitors that are able to obtain financing on more favorable terms.”
Frontier said it has done a full review of its operations and joining with Verizon “will allow the continuation of Frontier’s fiber deployment strategy, while also enhancing service options for Frontier customers. The Parties negotiated the Transaction at arm’s length, and neither party is being given an undue advantage over the other.”
Verizon said it is aware of Frontier’s landline service issues in the Mountain State.
“Verizon understands the concerns that the Commission has raised about telephone service quality,” the filing said. “Following closing of the Transaction, Verizon’s intent is to listen to these concerns and be responsive to these problems. In the nearly 15 years since Verizon left the state as an incumbent wireline provider, it has made major changes to its approach to customer service.”
The application to PSC added, “Following the close of the Transaction, Verizon will offer its service plans to current Frontier customers, and West Virginia consumers. Critically, this includes a national low-income broadband plan and bundled service options not offered by Frontier today.”
The PSC approved Frontier’s purchase of Verizon landlines in May 2010. It was the last of nine states to do so. That transaction also included Arizona, California, Illinois, Nevada, Ohio, Oregon, South Carolina and Washington.