Verizon-Frontier deal receives judge’s disapproval (USA)

www.WirelessFederation.com/news: The state regulators have been advised by administrative law judge Lisa M Tapia to disapprove Verizon’s deal to divest operations in 14 states to Frontier Communications in a USD8.6 billion deal.

The deal will see fixed line service for a total of 4.8 million customers change hands. The deal was agreed between the two parties in May 2009 but the regulatory approval was awaited for the best part of a year.

According to Tapia, evidence presented in the case in front of the Illinois Commerce Commission did not support the sale because the transaction would leave Frontier too laden with debt to be able to properly manage the lines and other infrastructure.

Frontier’s ability to provide adequate, reliable, efficient, safe and least-cost public utility service will also be diminished by the proposed re-organization.