Verizon's $20B Frontier Acquisition Gets FCC Nod After DEI Policy Changes: Retail Yet To React

Verizon’s Frontier deal approval will enable nationwide broadband buildout, add 2.2 million users, and $500 million in annual operational savings.

Verizon Communications Inc. ( VZ) has received approval from the Federal Communications Commission (FCC) for its $20 billion acquisition of Frontier Communications (FYBR). 

The approval follows Verizon’s commitment to boost its broadband infrastructure spending and revise its diversity, equity, and inclusion (DEI) policies to reflect the regulatory approach favored by the Trump administration. 

FCC Chair Brendan Carr supported the merger, calling it beneficial to the public.

“By approving this deal, the FCC ensures that Americans will benefit from a series of good and commonsense wins. The transaction will unleash billions of dollars in new infrastructure builds in communities across the country—including rural America,” said Chair Brendan Carr.

Verizon has agreed to roll back its diversity, equity, and inclusion (DEI) efforts in light of regulatory pressures. 

The company will take down its DEI website, remove related content from training programs, drop diversity hiring targets, and change plans that reward diversity metrics. 

Verizon had proposed to purchase Frontier in a $20 billion cash deal in September 2024. 

The deal, involving the country’s largest standalone fiber internet provider, will expand Verizon’s national fiber coverage and enhance its broadband and wireless service capabilities. 

It will also strengthen Verizon’s edge network to support emerging technologies such as AI and the Internet of Things.

Verizon’s acquisition is expected to add 2.2 million Frontier fiber users across 25 states, expanding its fiber footprint to 25 million locations in 31 states and Washington, D.C., with plans to reach 2.8 million more by 2026. 

The deal is expected to yield $500 million in yearly cost savings. As part of the agreement, Verizon has committed to deploying fiber-optic internet access to at least one million new homes annually.

“This investment will accelerate the transition away from old, copper line networks to modern, high-speed ones. And it delivers for America’s tower and telecom crews who do the hard, often gritty work needed to build high-speed networks,” added Carr.

The merger is expected to close within 18 months, pending approval from Frontier's shareholders. 

On Stocktwits, retail sentiment around Verizon remained ‘bearish’.

Verizon stock has gained 10% in 2025 and 9% in the last 12 months.

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