Sale of Verizon Wireline Assets
to Frontier Communications
March 23, 2015, Frontier Communications and Verizon filed an Application
with the CPUC requesting approval for the sale and transfer of Verizon
California's wireline assets, operations, and customers to Frontier. The
Joint Applicants claim benefits of the merger, including:
financial strength of Frontier
and enhanced broadband services
stability and other economic benefits
of California Regions affected by the sale of Verizon wireline assets to
July and August 2015, the CPUC held Public Participation Hearings and
workshops around that state, including in Claremont, Garberville, Hoopa, Long
Beach, Mammoth Lakes, Orleans, Rancho Mirage, Ridgecrest, Santa Barbara, Santa
Hearings were held at the CPUC on September 24, 2015.
performed an in-depth review of Joint Parties' request to ensure that ratepayers
would benefit from the sale of Verizon wireline assets to Frontier. ORA
recommends the proposed transaction should be approved only if certain
conditions are required by the CPUC that will ensure benefits to the public,
should be financially responsible for the cost of upgrading its network,
which it allowed to deteriorate.
should be required to upgrade the broadband network so that at least 98% of
its households receive the minimum
speed set by the FCC: 25 Mbps download and 3 Mbps upload.
should be required to furnish VoIP customers with battery back-up power, at
no charge, so they can 911 during a power outage.
should be required to track and report its service quality performance for
voice, VoIP, and broadband services.
should be required to fund an ORA-managed independent survey that would
conduct multi-lingual customer satisfaction surveys, and provide results to
the CPUC on a quarterly basis so that problems can be identified early.
conditions provide a performance-based approach toward addressing significant
concerns with the sub-par level of service quality and reliability
provided by Frontier and Verizon.
state law [P.U.
Code § 854 (b)(2)], ratepayers are required to receive, at minimum, 50% of
the net benefits derived from the transaction by Frontier and Verizon. ORA
recommends ratepayers’ share of the net benefits be used to repair Verizon’s
deteriorated wireline network and upgrade Frontier’s and Verizon’s broadband
network in order to ensure a minimum speed of 25 Mbps download and 3 Mbps upload
is available to at least 98 percent of the combined service territory by 2020,
including rural and tribal areas.
ORA’s July 28, 2015 Testimony
with the results of ORA’s full analysis of the Application.
ORA's April 27, 2015 Protest
to the Application.
at the docket to receive proceeding updates.