site Search:


 
   
story category
West Virginia Approves Verizon/Frontier deal
Only the FCC remains....
by Karl Bode Friday 14-May-2010 tags: legal · fcc · business · Verizon Online DSL · Frontier Communications
Tipped by ungawd See Profile
As had been expected, West Virginia regulators have approved Verizon's $8.5 billion sale of more than 6 million phone and DSL customers across fourteen states to Frontier Communications. West Virginia was the last state needed for approval -- but approval had been hard earned due to Verizon's neglect of infrastructure (and unions) in the state. The state Public Service Commission in West Virginia believes the sale's benefits outweigh "the negatives or potential risk."

Conditions attached to the deal aren't particularly tough, requiring that Frontier waive early termination fees for 90 days after the deal closes, and cap current Verizon rates for a year. In a statement, Verizon said they were "pleased" by the deal:

"We're pleased the commission has approved the transaction. The record developed in this case provides comprehensive evidence and assurances that the transaction with Frontier Communications is in the public interest and will provide many benefits to West Virginia residents, including increased investment and broadband availability in the state, while protecting jobs and promoting employment."

Of course West Virginia residents will get to see if that's true, or, if many consumer advocates and unions feared, Frontier struggles with the debt load of this deal like former Verizon partners Fairpoint and Hawaiian Telcom. All that's left now is the regulatory approval of the FCC.

Update:Telecompetitor directs our attention to some possible FCC merger conditions already in the works:

In an effort to quicken the FCC’s approval pace, Frontier is making additional promises. According to Stifel Nicolaus, “Frontier committed to a broadband deployment schedule that would bring 4 Mbps (download) service to at least 85% of the households by 2015 in the Verizon territories it’s acquiring, among other broadband commitments. Frontier also committed to various steps to assure the FCC and wholesale customers (e.g., CLECs) that there will be no drop-off in operations support system performance in these Verizon areas after the sale."


view: topics flat text 
Post a:
Tcomp

join:2008-07-29
Greenbelt, MD

Fairpoint talks broadband speeds to FCC

Now all that's left is the FCC. Frontier has made additional promises to the FCC concerning broadband speeds in Verizon territories ...

www.telecompetitor.com/west-virg···remains/'

clearanceman

@comcast.net

Re: Fairpoint talks broadband speeds to FCC

Oh boy DSl.... not. I'll stick with Cable.

SteveCon
IBEW 2222 Boston, MA
Premium
join:2004-09-02
Boston, MA

Great.

We get what we deserve I suppose. When we elect self-serving politicians that vote with their wallets, they will make sure that "me first" trumps anything else in their job description - like doing what is in the best interest of their constituents.

If you're not p!ssed off; you're simply not paying attention.
--
UNIONS: The anti-theft device for working people.
gorehound

join:2009-06-19
Portland, ME

Re: Great.

I live in Maine so I can already feel yor pain.

benc
Premium
join:2007-06-17
Glen Carbon, IL
Reviews:
·Charter
said by SteveCon:

We get what we deserve I suppose. When we elect self-serving politicians that vote with their wallets, they will make sure that "me first" trumps anything else in their job description - like doing what is in the best interest of their constituents.

If you're not p!ssed off; you're simply not paying attention.
     Alright.  But what choices do we have?

     Perhaps I've been unlucky, but so far it has seemed like voting between two evils, choosing which one we think will do the least damage.

     Third party?  In theory that sounds good, but since most people don't care, I don't see a third party gaining any sort of significant threshold.

SteveCon
IBEW 2222 Boston, MA
Premium
join:2004-09-02
Boston, MA

Whatever..

"Once great" You don't get it. Your CEO, CFO, COO et al, wouldn't even get out of bed in the morning without their contract. Unionized workers don't either. It's all the bumkissing managers below the top that have been brainwashed. Don't worry though - once your bosses have reduced / eliminated middle-class working Americans to a bunch of burger-flippers and other low paid service sector workers, no one will have the money to buy those fancy products that were once produced in the U.S. but are now manufactured off shore. Then you'll see - those top bosses will be looking to move YOUR job.

Can you say: "Do you want fries with that??"
--
UNIONS: The anti-theft device for working people.

Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

Frontier promises will bite them down the line

To get FCC approval Frontier is making promises it either can't keep or it will drive them in to bankruptcy. When will these companies learn to not buy FCC approval with promises they can't keep? And when will the FCC stop forcing promises that they know will result in bankruptcy?
--
Are you happy with your rep in Washington, DC?

spewak
R.I.P Dadkins
Premium
join:2001-08-07
Elk Grove, CA
kudos:1
Reviews:
·SureWest Internet
·Clear Wireless

Re: Frontier promises will bite them down the line

said by Romney2012:

To get FCC approval Frontier is making promises it either can't keep or it will drive them in to bankruptcy.
I will second that! Frontier is in no Technical/Financial position to "Promise" anything. They are simply incapable of following through!
--
The weekend is here, grab a can of beer!
heimdm

join:2008-06-22
Martinsville, IN

Re: Frontier promises will bite them down the line

I think the only sure bet on this is to buy a ton of frontier stock and short it all. When it drops to about $0.01 in a year... then you will be all the wiser.

morbo
Complete Your Transaction

join:2002-01-22
00000

Re: Frontier promises will bite them down the line

doing that now...

spewak
R.I.P Dadkins
Premium
join:2001-08-07
Elk Grove, CA
kudos:1
Reviews:
·SureWest Internet
·Clear Wireless

Re: Frontier promises will bite them down the line

said by morbo:

doing that now...
Ditto!
--
The weekend is here, grab a can of beer!
Zoder

join:2002-04-16
Miami, FL
Did youmiss the part in the Telecompetior article where is says 4mbps is "the benchmark the FCC has selected to qualify for financial support under the national broadband plan’s Connect America Fund."?

So it looks like the American taxpayer gets to fund this buyout for Verizon. Lucky us.

morbo
Complete Your Transaction

join:2002-01-22
00000

Lower those expectations

"a broadband deployment schedule that would bring 4 Mbps (download) service to at least 85% of the households by 2015 "

Wow. Lower your expectations to the ground, people.
markofmayhem
I can haz competition?
Premium
join:2004-04-08
Pittsburgh, PA
kudos:4

Re: Lower those expectations

4 mbps in 2015 is embarrassing. I hope I'm not alone in no longer feeling represented across many topics.
Nuts65

join:2006-04-27
Forest, OH

Re: Lower those expectations

I don't disagree, however, when you have no dsl option now,then the possiliby of getting 4mb in the next 5 yrs is something, though I doubt we'll ever see it.
patcat88

join:2002-04-05
Jamaica, NY
kudos:1
said by markofmayhem:

4 mbps in 2015 is embarrassing. I hope I'm not alone in no longer feeling represented across many topics.
Frontier will met that requirement by selling rebranded Verizon LTE. Same way ATT met their broadband coverage requirement with WildBlue. 100% coverage, guarenteed!
PDXPLT

join:2003-12-04
Banks, OR
said by markofmayhem:

4 mbps in 2015 is embarrassing. I hope I'm not alone in no longer feeling represented across many topics.
But remember you have to compare it against what Verizon was providing in the territories in question: over a third of customers had no broadband at all; zero. And Verizon was never going to give it to them Going from zero to 4 Mbps won't feel like it's "embarrassing" to those who get it.

morbo
Complete Your Transaction

join:2002-01-22
00000

Re: Lower those expectations

The point is while there is still some power here, shouldn't we really be requiring internet speeds that aren't a decade past their prime?
Nuts65

join:2006-04-27
Forest, OH

Re: Lower those expectations

I'm far from being an expert on this, but my guess is that it may be a cost issue. if it takes $1B to get 85% to 4mb, and $3B to get to say 6mb, then you would greatly increase the chance of Frontier declaring bankruptcy.

Others here can speak better to this than I can. The dollar amounts I used are just examples, I have no idea the true cost to get to these speeds.
NyNexit

join:2009-11-01
Huntington, NY
Reviews:
·Verizon FiOS

Shame on Verizon

This is just another success by Verizon to DUMP as many of their decently paid unionized workers and their obligations to them as possible so they can become " an urban [services] provider".
*
Its a spit in the face to the American Middle class, the very people that make companies like Verizon successful.
*
Now here this Verizon.... this is the final straw, you have lost a life long customer (multi-service).
(I know I know but what else can I do right)
*
What kind of politician signs off on this?
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
Reviews:
·WOW Internet and..

Re: Shame on Verizon

all over a sale to another company.. OMG! This happens every day.... com'on.... would you leave your bank too if they were sold?
--
www.twopugsbrand.com Kosher, Vegan, and Organic Certified Dog and Cat treats/foods and other products!
NyNexit

join:2009-11-01
Huntington, NY
Reviews:
·Verizon FiOS

1 edit

Re: Shame on Verizon

I should have noted that my father was a 33 year veteran, and my grandfather a 30 year veteran before him... both big into the union functions.... kinda connects the dots.
.... also, the likelihood that these new companies will wash their hands of their responsibilities in bankruptcy is high. Its just Sh*tty thats all
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Shame on Verizon

well you must have gotten the memo that Union work is on its way out then huh?
NyNexit

join:2009-11-01
Huntington, NY

Re: Shame on Verizon

It's terrible... Unions help blur the line between rich and poor.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
Reviews:
·WOW Internet and..

Re: Shame on Verizon

i disagree with that and so does most of the country. Because if you can't work to earn the wage you get paid now then that's your problem.
--
www.twopugsbrand.com Kosher, Vegan, and Organic Certified Dog and Cat treats/foods and other products!
NyNexit

join:2009-11-01
Huntington, NY
Reviews:
·Verizon FiOS

Re: Shame on Verizon

.... maybe you shouldn't speak for the WHOLE country....
*
It is true though, Unions (all kinds) and their collective bargaining power help "check" the power of employers. I don't want to get into a heated discussion here but its true.
Think about the thousands of employees (many of them with the company for many years) that Verizon dumped when they sold their new England markets. That company (frontier I think) is now on the verge of bankruptcy. They can't even maintain their network. The sale benefited nobody but Verizon.
The sale itself was barely legal. (there are many articles about this situation on this site)
*
Imagine you work for a company for 15-20 years.... only to be dumped on a debt laden company that boarders on bankruptcy. If that happens, all your expectations for a pension or decent retirement benefits go out the window.
*
Its just a shi*ty thing to do to your employees, your employees are the reason your successful.
*
One last thing... whats this about " Because if you can't work to earn the wage you get paid now then that's your problem."?
This statement doesn't make sense. The people with the "good" pay in a union are those who put in the time and gain the expertise to warrant that pay. Its not just given away.
*
ok I'm done here. - Thanks for the good discussion.

OSIU
Where is my "change"?
Premium
join:2003-11-12
00000

Super!

Now when does Verizon Wireless come through this area with LTE and pick up 1/3-2/3 of the customers back and drive Frontier in bankruptcy (if they aren't already there)?
acrufox

join:2004-07-14
Canada
Reviews:
·Eastlink Cable

2 edits

Not amused...

Anyone surprised it went through? Nooooo.

Like everything else these days, you'll pay more for less, then you'll flip on the TV and see politicians with their panties in a bunch when things go south.

"The American People" deserve better than this, "The American People" demand we do something about it. Where were they before such blatantly bad deals were being put through? Oh yes they were behind closed doors looking out for their own interests.

Soon enough this house of cards will come crashing down and a politician will either use it for their election platform, or pretend to look into it like they actually care about the customer. "How did this happen!? We need to do something about this so it doesn't happen again!"

I feel really bad for all the FiOS customers that Frontier will undoubtedly drag through the mud in the process.
PDXPLT

join:2003-12-04
Banks, OR

Re: Not amused...

said by acrufox:

"The American People" deserve better than this, "The American People" demand we do something about it.
I thought the "American People" were demanding smaller government, less regulation, less government interference.

This is what small government looks like.
Bubba Rock

join:2010-04-21

Re: Not amused...

said by PDXPLT:

said by acrufox:

"The American People" deserve better than this, "The American People" demand we do something about it.
I thought the "American People" were demanding smaller government, less regulation, less government interference.

This is what small government looks like.
yes big biz has their way with things just as if the government weren't even there at all! just a tool of big biz.

yolarry

join:2007-12-29
Creston, WV

Screwed again

subject says it all
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Biggest Problem

Once real 4G (LTE Advanced and WiMAX 2) are implemented DSL companies are going to disappear from the landscape. We're heading towards a terrible broadband future barren of any competition. There will be the cable company and the wireless company, mainly Verizon and AT&T.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
Reviews:
·WOW Internet and..

Re: Biggest Problem

And when everyone gets smart---especially the Telco's they'll ditch the hardwire to the customers house (which would work great in the very rural areas) and run wireless of some sort for phone and Internet. Which i'm surprised none of them do or have tired yet.
--
www.twopugsbrand.com Kosher, Vegan, and Organic Certified Dog and Cat treats/foods and other products!

Neoistheone

join:2007-01-13
Tornado, WV

Well...

If the bill increases I'm out.

If they start the pull that excessive use B/S with me then I'm out (which they probably want).

I mean common, 5 GB a-month acceptable use policy?
--
When you ASSUME, you make an ASS out of U and ME.
ALovelyGust

join:2009-09-20
Fayetteville, OH

I advise moving.

"Frontier committed to a broadband deployment schedule that would bring 4 Mbps (download) service to at least 85% of the households by 2015 in the Verizon territories it’s acquiring"

Wow. That is just bad.
Sammer

join:2005-12-22
Canonsburg, PA

1 edit

Re: I advise moving.

said by ALovelyGust:

"Frontier committed to a broadband deployment schedule that would bring 4 Mbps (download) service to at least 85% of the households by 2015 in the Verizon territories it’s acquiring"

Wow. That is just bad.
Pathetic isn't it. For many West Virginians it's suddenly SuddenLink whether they want it to be or not. Is your advice about moving meant for the PSC? A lot of the people they just screwed own hunting rifles.
WhatNow
Premium
join:2009-05-06
Charlotte, NC

down and out

If Verizon could not upgrade the system then Frontier will not have the funds. The only reason Frontier did this deal is upper management ego. This time they have over played their hand. The real losers are the share holders and the people that hold the debt. Both will go to zero.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
Reviews:
·WOW Internet and..

Re: down and out

Frontier should be smart and just build wireless network and go from there. I'm sure they could lease from frequencies cheaper than maintaining that copper all the way out into the sticks.
--
www.twopugsbrand.com Kosher, Vegan, and Organic Certified Dog and Cat treats/foods and other products!

mikedz4

join:2003-04-14
Weirton, WV
Reviews:
·Comcast
·Comcast Digital ..

what's next?

I am glad I am probably moving to pa eventually. Will comcast in the northern panhandle sell off to suddenlink next. Not that suddenlink is that bad or anything.

The thing that scares me is that with verizon throwing a pie in the face of west virginians and leaving us with frontier, will that mean that companies like time warner, suddenlink and comcast will quit developing out in west virginia since there isn't any competition. Leaving us with 50mbps dervice in 10 years when everyone else has 500mbps or 1gbps service then?

See 8 replies to this post
GenBlood

join:2005-04-14
Nashua, NH

A forsee another Chapter 11 coming ...

I give it 14 months ... maybe 17 before they crash and
burn like FairPoint Communication. I figured they would
have learned from the last 3 deals Verizon did. All 3 filed
for chapter 11 and those areas are still messed up.

Only time will tell ....

mikedz4

join:2003-04-14
Weirton, WV

Re: A forsee another Chapter 11 coming ...

maybe if they declare bankruptcy and fold someone who cares will buy west virginia. Maybe even the state will takeover and do something worth while in this state.

Sunday, 03-Jun 12:54:31 Terms of Use & Privacy | feedback | contact | Hosting by nac.net - DSL,Hosting & Co-lo
over 12.5 years online © 1999-2012 dslreports.com.