Verizon Concerned About Potential Deployment Requirements for Frontier Deal
A CPUC judge set an oral argument date of Jan. 12, 2026.
WASHINGTON, Dec. 23, 2025 – California’s telecom regulator will hear oral arguments in its review of Verizon’s acquisition of Frontier on Jan. 12, 2026, an agency judge decided Friday.
The California Public Utilities Commission judge, Elizabeth Fox, has recommended the agency approve the $20 billion merger. The companies’ attorneys have flagged at least one issue with Fox’s proposed decision, a provision requiring Verizon to build out broadband to all locations served by certain rural Frontier wire centers.
Verizon and Frontier attorneys met with CPUC staff on both Friday and Monday “to discuss concerns [the companies] have identified with the Proposed Decision issued in this proceeding, including Ordering Paragraph 2,” according to filings from the companies. Ordering paragraph two dealt with the wire centers.
The proposed decision lists 88 wire centers where Verizon would have five years to offer broadband service to all locations.
“This number is larger than anticipated and was not indicated in the prior record,” New Street Research Policy Advisor Blair Levin wrote in a Friday investor note. He added he expected Verizon attorneys to push back on the requirement when meeting with the CPUC.
Still, he noted build out requirements are common and haven’t been used to block a merger. Verizon and Frontier have said Frontier didn’t have enough cash to continue its fiber build out without being absorbed by Verizon.
DEI, other conditions
Diversity, equity, and inclusion requirements have been the more contentious part of the proceeding. Verizon agreed to axe diversity policies in exchange for Federal Communications Commission approval, and the CPUC quickly wondered whether those commitments conflicted with California law.
Fox wrote in the proposed decision, posted last week, that she thinks “the commitments in the Verizon-FCC letter can be consistent with California law when taken along with additional commitments and requirements.”
She would have the CPUC require Verizon to establish a recruiting pipeline at California state universities and community colleges “aiming to recruit from underrepresented populations,” and to contribute to training and internship programs there, among other things. The company had objected to imposing extra DEI conditions to the deal, fearing they would conflict with its existing commitments to the FCC.
As part of settlement agreements reached to secure parties' support for the merger, Verizon already committed to deploy fiber to 75,000 locations and to deploy 250 cell sites within five years.
The company also said it would spend $500 million with California-based suppliers, an effort to comply with the state’s rule requiring large telecoms and utilities to try to increase spending with minority-owned businesses. That didn’t convince Fox, and she imposed the extra conditions, including meeting with local organizations to discuss procurement and hiring, among other things.
Timeline
The CPUC’s first chance to vote on the proposed decision will be at its Jan. 15 meeting. The agency said it would resolve the issue before Feb. 13, which the companies have stressed is of huge importance to them.
That’s when Justice Department approval on the deal will expire, requiring additional lengthy review if the transaction isn’t closed by then.
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