FCC Approves Ziply Fiber’s Acquisition of LocalTel

WASHINGTON, September 16, 2024 - Ziply Fiber has gained approval to acquire the wireline broadband and wireless assets of LocalTel, a communications company based in Washington state.

The Federal Communications Commission’s Wireline Competition Bureau, following a review begun in March, authorized the sale of LocalTel assets to Ziply Fiber, according to a Friday notice. The transaction was unopposed.

Based in East Wenatchee, LocalTel provides broadband services to more than 40,000 homes and businesses throughout Eastern Washington, the FCC said. 

Ziply Fiber will also receive conditional support from two FCC initiatives to expand Internet access in rural areas, the Rural Digital Opportunity Fund and Phase II of the Connect America Fund.

Based in Kirkland, Wash., Ziply Fiber is controlled by several private equity firms, including Searchlight Capital. Ziply's CEO is Harold Zeitz, a 30-year industry veteran.

The FCC’s review included weighing the potential harms versus the potential benefits of the transaction. The agency found that Ziply’s acquisition would bring about public interest benefits, without causing any harm to consumers.

As part of the review, the FCC required Ziply to show that the proposed transaction would serve the public interest. 

Ziply Fiber, as the applying party, reported to the FCC that the sale would lower the cost of Internet deployment and, by including the transfer of RDOF and CAF Phase II support, would keep consumer prices competitive amid rising construction costs.

LocalTel is currently authorized to receive about $54 million in RDOF and CAF Phase II support to serve 12,530 locations in Washington State, an amount that Ziply Fiber said can support efforts to rapidly and cost-effectively build out its new and existing deployment areas as it expands its broadband operations.