The Federal Communications Commission has given its stamp of approval on a sale that tops $8 Billion. Verizon Communication Incorporated has sold off almost five million telephone lines to Frontier Communications Corporation. This sale spans mainly rural areas across 14 states.
This deal came with some speculation on how well Frontier could handle the financial strain of the landlines. Let’s face it; Frontier Communications is a much smaller company that Verizon Communication and dealing with five million landlines is a big deal.
Frontier Communications won this deal by promising a lot to its new rural customers. The biggest promise comes in the form of faster broadband access to more people in its service areas. Add to that the promise of fiber connectivity to libraries, hospitals, and other anchor institutions. These are some big promises by a little company.
Julius Genachowski, FCC chairman, went on to say “Today the Commission approves, subject to conditions to protect the public interest, a transaction with the promise of significantly improving broadband availability to millions of consumers—as well as small businesses and anchor institutions—in rural and small-town America.”
This deal did not come without a few upset people though. In April, communications workers in West Virginia protested this deal. They argued that similar deals with Verizon Communications in other locations led to workers losing jobs, inadequate service, and broadband promises that have yet to be fulfilled. Protestors topped off the protest cake by pointing out fears of Frontier Communications financial abilities to handle such a large service area.
While Frontier Communications is making big promises, only time will tell how well this deal works out for the company and the service area. The FCC has a goal of spreading the broadband wealth across the nation. Frontier Communications has promised to fulfill this wish. How they do it and how many people are left standing with jobs will be the true indicator of how successful this deal really was.