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story category Frontier/Verizon Deal Keeps Moving Forward
Ohio latest state to ignore warnings, unanimously approve deal...
04:34PM Thursday Feb 11 2010 by Karl Bode
tags: business · Op/Ed · telco · Frontier Communications
Tipped by XPAMD See Profile
Despite heavy opposition from consumer advocates and unions, Verizon's plan to offload another significant chunk of their DSL and landline networks continues to move forward. The $8.5 billion deal immediately infuses Frontier, which has 2.3 million customers, with 4.8 million new residential and small-business phone lines and 1 million broadband connections. 11,000 Verizon employees will be transferred. Unions, consumer advocates and many consumers fear the deal, which also infuses Frontier with $3 billion in debt, will end the same way a similar deal did for Fairpoint Communications (namely, bankruptcy and a lot of crying).

Frontier execs and lobbyists have been very busy going state to state trying to convince regulators they shouldn't worry, and that they're nothing like Fairpoint. In a number of states the carrier has been running PR campaigns to also sell locals on the deal. The marketing campaign and lobbying appears to be working. Ohio regulators are the latest to unanimously approve the deal. Frontier quickly issued a press release claiming the approval means Ohio residents will see better broadband services:
"Upon completion of the transaction, Ohio will be Frontier's fifth largest state and we will be ready to deliver great products and services to our new customers. Extending broadband reach and penetration is critical to revitalizing communities, improving business productivity and giving consumers faster access to the resources of the Internet. Frontier has committed to do that for its new customers in Ohio."
The Office of the Ohio Consumers' Counsel also issued a press release claiming the deal is good for consumers, despite the fact that staffers at the office just a few months earlier claimed the deal wasn't a particularly good idea (we saw the same kind of discord in Oregon). Ohio regulators did impose conditions, but they aren't tough: Frontier must cap prices until they reach 85% broadband deployment in the state, which must happen by the end of 2013. That won't be a tough metric for a state that the industry's own Connect Ohio broadband mapping organization claims is already largely served (that may or may not be true, but the data can be used by Frontier to claim to regulators that their goals are met).

Back in reality, while Frontier may be better positioned than Fairpoint to absorb the massive debt hit, there's still no reason customers should expect significant upgrades. Other than the limited number of already built Verizon FTTH markets in the Pacific Northwest included in the deal, these users certainly won't be seeing fiber. Users in Frontier's existing markets don't really see next generation services of any kind as it is; 12 Mbps is the fastest speed Frontier offers, and most users tell us they see far less. There's little evidence to suggest these new acquisition markets will be any different. In fact, Frontier is growing so quickly with this deal, it will probably take them some time simply to absorb the billing and support load.

While it's absolutely not clear that the deal benefits consumers in any way, at least Frontier wants to serve these communities.

Verizon is offloading many of these more rural markets as part of a significant new plan to offload aging copper-based networks and complaining union workers while jettisoning debt and gaining some nice tax credits. These deals also provides Verizon with a way to dodge regulators who've increasingly been complaining that Verizon's intentionally letting these networks (and their support of them) go to hell. As an added bonus (but don't tell Frontier or Fairpoint executives this), Verizon will likely come back into these markets at a later date and pitch consumers wireless LTE services that may be faster than aging DSL.

Frontier only needs approval from five additional states and the FCC.

Related:
  1. AT&T, Verizon Pour It On Thick In Praise Of New Broadband Plan
  2. AT&T Celebrates Open Access Failure, Threatens FCC
  3. FCC Spent A Decade Using Garbage Broadband Data
  4. FCC Approves Verizon Frontier Deal With Wimpy Conditions
  5. Frontier Sues Google Over Google Voice Patent
  6. Apple's FaceTime: The Beginning Of The Dumb Pipe Revolution
  7. Frontier Closes $8.5 Billion Verizon Deal
  8. Verizon/Frontier Transition Going Smoothly In Oregon
Forums » Frontier/Verizon Deal Keeps Moving Forward
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Anonymous_
Anonymous
Premium
join:2004-06-21
127.0.0.1
clubs:

1 edit

lol

see better broadband services

so there is something better then fios?
MMH
Premium
join:2002-03-03
·Sprint Mobile Broa..
·Comcast

Re: lol

said by Anonymous_ See Profile :

see better broadband services

so there is something better then fios?
Well, better than 3 mbps DSL which is the max Verizon offers in many, many areas. Verizon is dumping very little of their Fios plant in this deal.

ReformCRTC
Support Your Independent ISP

join:2004-03-07
Canada

Re: lol

copper meet scrapheap
SunnyD

join:2009-03-20
Madison, AL

Re: lol

Actually, you never know. Frontier adjusters may have determined that the scrap value of copper (which is pretty high right now) actually makes this a good deal!
titoyay222
Premium
join:2005-04-27
Cincinnati, OH
·Comcast
·RoadRunner Cable

blah

This is such a great idea I don't know why we even need a government body to approve this merger or any of them going forward.

/sarcasm

I feel bad for anybody in these areas where verizon is offloading the network they no longer want to support. I wonder what kind of incentives these business men are getting to let deals like this slide by no problem.

I wonder how many people in America are going online reading articles like this and starting to get angry on how things are being operated in the good old US of A.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
·Time Warner Cable
·buckeye cable

Re: blah

Many areas in Ohio that Frontier will be getting, will be happy to have someone besides Verizon to offer them services. VZ is one of the worst companies in Ohio to deal with besides ATT for telephone services.

GTE offered great service in Ohio and still would be if it wasn't for that deal when they merged to create VZ. TWC still will dominate many of the VZ areas with voice and data due to the out dated and piss poor network Frontier just purchased.
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hottboiinnc
ME

join:2003-10-15
Cleveland, OH
·Time Warner Cable
·buckeye cable

Bought and Paid for By VZ

Just a few months ago the Ohio Consumers Counsel said the deal wouldn't do anything to Ohio but cause the same problems as Fairpoint. But what do you know. They're new press release says that Ohioians will benefit from this new deal. Talk about being bought and paid for. Good thing the OCC isn't the PUC and has no legal power.

»www.pickocc.org/news/2010/pressr···02112010
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Karl Bode
News Guy
join:2000-03-02

Re: Bought and Paid for By VZ

The same thing happened in Oregon. Consumer advocates on staff saw no benefits and potentially only harm, yet the regulators wind up approving the deal unanimously. Funny how that works...
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
·Time Warner Cable
·buckeye cable

Re: Bought and Paid for By VZ

True. The thing though is in Ohio everyone knows the Consumer Advocates (OCC) has no power or control over anything. They're basically there to help the consumers when they really don't do anything.

I had 2 lines back when ATT when Ameritech was SBC Ameritech, one line was for voice one for dial-up. I would call a local number to get online...yet SBC/A would still charge me a local TOLL call. First month bill was over $4,000. The OCC said nothing they could do except get $50 taken off the bill....talk about being pissed off. The PUC wouldn't do anything period (but they NEVER do).
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old_wiz_60

join:2005-06-03
Bedford, MA

regulators approve of course

the regulators approve the merger since they get money under the table to approve it. They know perfectly well it's a disaster for consumers and the debt will kill the new company

comcastwv

@comcast.net

west virginia

sources tell me West Virginia regulators will deny this deal and keep Verizon in the state
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
·Time Warner Cable
·buckeye cable

Re: west virginia

and then VZ will file paper work and give the State of WV notice of leaving, and then leave everything up to the state to figure out. The State's fail to see that they can do that.

Also the PUCs are the ones that get to approve or deny the deal and if VZ/Frontier gives enough money they'll get what they want. Otherwise, like i said the state will be SOL.
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Smokey99

join:2004-06-25
Nitro, WV
The WV PSC will approve the deal. My only hope is that it will void my contract with Verizon so I can switch to SuddenLinkl

mountain top

@direcpc.com

Verizon wanted to stay in the state of WV from what I have read on here because they make more money from WV customers (probably due to them not putting much money into the infrastructure) and Frontier wanted WV as part of the deal since they already have a huge presence here.
Bob61571

join:2008-08-08
Washington, IL
·Verizon Online DSL
·DIRECTV


1 edit

Illinois ICC (Illinois Commerce Commission) getting closer

...to approval.

Staff, NOT the ICC, just gave Initial Approval on Feb 9 2010,
given some conditions.
One condition is 85% DSL in territory by Dec 31, 2013.

»www.icc.illinois.gov/docket/file···d=146443

tim_k
Buttons, Bows, Beamer, Shadow, Kasey
Premium
join:2002-02-02
Stewartstown, PA

Feb 11, 2012- Frontier files chapter 11

I wonder how many times Verizon can get away with this? I wonder why the other big telcoms aren't trying to get in on the act?

MrMoody
Why is this guy smiling?
Premium
join:2002-09-03
Smithfield, NC

Cap?

Does Frontier still have a ridiculous monthly DSL usage cap?
seezar
Premium
join:2001-07-01
Rochester, NY

Re: Cap?

said by MrMoody See Profile :

Does Frontier still have a ridiculous monthly DSL usage cap?
They never had a cap implemented. It was just some wording in their AUP.
kc8jwt

join:2005-10-27
Cheshire, OH
·HughesNet Satellit..

The rural regions are the ones that get shafted

As a longtime Southeastern Ohio resident, the choice of high-speed internet providers are slim.

Connect Ohio was supposed to be pulling all kinds of stakeholders to promote broadband implementations in the rural regions. Most of the schools in this area have started getting fiber connectivity to the ITC that they are connected to. It's a fancy way it's done, but in the school that I work we have 10/10 fiber connectivity via AT&T. There is one school that is served by Embarq. They won't even talk with anyone about fiber. Some other schools are served by Time Warner and others by Suddenlink.

At the end of the month I am moving 20 miles away. I currently have Suddenlink service, but where I am moving to, the previous owner of the property would not allow cable (Charter at the time) to cross his property. As a result, I live on the only street in town that does not have cable. It would be simple to move and hook up all of my equipment.

Because of Verizon not putting DSL in this area, my only option of "high-speed" internet is satellite. Basically, they don't want to waste the time to do it. I have lived in my current place and had AT&T service since 04. It is now 2010 and they are just now offering DSL service to my home.

My belief is that making a promise to the state PUC that you are going to implement broadband in the under served areas doesn't work. As a company I'll say I'll do that just so I can get in there.

It's just like our politicians that tell us they will do something about it if we elect them and then say after they get into office, "Well it wasn't what I thought it was when I was running for office. I will have to go back on what I said."

iluvfrontier

@comcast.net

Frontier.. yay

My parents have been without DSL for an entire week here in WV. No estimate on when it'll be back up. Can't get anyone to call back. Their customer support is non existent.

They are using Frontier dialup as a backup. Guess what, that disconnects automatically every 20 minutes. I know Verizon can walk out of the state if Frontier doesn't take over. However, Frontier is really horrible. I feel for all the Verizon customers that are used to good customer service. That will change real quick once Frontier takes over.

I really doesn't see how such a small company will be able to manage all Verizon's infrastructure in this state. They don't have the resources to management their own infrastructure.

BlitzenZeus
Burnt Out Cynic
Premium,MVM
join:2000-01-13
Beaverton, OR
·Verizon FiOS

Impending cancelation of Verizon FIOS in...

After looking into the track record of Frontier, they can barely manage their tiny dsl network in comparison, and are making stupid mistakes like making a video portal to keep customers instead of improving their network conditions. I don't see this turning out well.

I see some really bad growing pains in the short run, but even with Verizon FIOS being a superior product to ComCrap around here, Frontiers impending bankruptcy is likely going to start the moment they sign the paperwork to finalize the deal.

Verizon still makes money on it either way, Frontier is going to take over debt too, but they still keep Verizon on to help maintain their services, including their horrible billing problems.

How many bad things can you take at once, lower quality service, more billing problems, and soon to be raising prices while all this is going on? Verizon would have been profitable in the long run, which would have provided them with more profit for years, however they want the short term returns.

It's sad to say, but I believe Frontier will actually make things just as bad as Comcast, if they don't just go bankrupt first.
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ricep5
Premium
join:2000-08-07
Jacksonville, FL
·AT&T Southeast
·AT&T CallVantage
·VoicePulse

Return to GTE

Interesting that Verizon is keeping the best of the GTE (General Telephone) regions they absorbed as part of the merger and essentially spinning off the rural areas they used to serve.

Since they (wireless division) bought Alltel which basically served rural areas, clearly the market is saying that copper can only make money in urban or more densely populated areas.

My biggest concern is the huge offload of debt to the new entity. Clearly if Verizon couldn't support it, how could Frontier?
davegtestr

join:2001-11-07
Bothell, WA

Re: Return to GTE

Huh? Verizon is selling out in metro Seattle (not including Seattle but areas East and North of Seattle). Hopefully WA State will not allow a third rate telephone company to serve a significant area around Seattle to the Canadian border. Think I'll keep my DISH equipment through this fall and see what happens with FiOS... The FiOS technician here just 12 miles North of Seattle said that it was telephone only they were selling. I think he'll be surprised when he could end up working for Frontier, then later they'll be bankrupt and kick the union out. At least Comcast internet isn't too bad if the worst happens...
nightjars

join:2010-01-09
Bothell, WA
·DSL EXTREME
·Clearwire Wireless
·Verizon Online DSL

Re: Return to GTE

That's the only saving grace of Frontier - at least I have Comcast to fall back on, though at a much higher price.

I can't believe how much money Verizon spent building out FiOS in our area to have them sell it off. It just makes no sense whatsoever. The northend/eastside is hardly "rural".
XEvilWyvernX
Premium
join:2004-10-28
Parkersburg, WV

WV Doesn't want them

WV doesnt want them they've even got the state attorney general and governor on board in the fight
Forums » Frontier/Verizon Deal Keeps Moving Forward


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