- The California Public Utilities Commission unanimously approved Verizon’s acquisition of Frontier Communications, subject to enforceable consumer and investment conditions.
- The clearance clears the last regulatory hurdle; Verizon is to close the deal on 20 January 2026 and expand broadband access, affordability and network investment across the state.
What happened: A decisive vote unlocks major telecom merger
Frontier Communications is a US-based telecommunications provider that offers broadband internet, voice and related services to residential and business customers across more than 20 states. The company is best known for its extensive fibre-optic and legacy fixed-line networks, particularly in rural and underserved areas, where it has focused on upgrading copper infrastructure to fibre.
Verizon Communications, one of the largest telecom groups in the United States, is widely recognised for its nationwide wireless network and 5G rollout, as well as its FiOS fibre broadband service. In 2024, Verizon agreed to acquire Frontier in an all-cash deal worth about $20 billion, including debt, a transaction later approved by Frontier shareholders, according to company filings.
The rationale for the merger is largely strategic. For Verizon, the deal significantly expands its fibre footprint, enabling it to reach millions more households and strengthen its ability to bundle mobile and fixed broadband services. Analysts cited by Reuters have said the acquisition could also generate cost savings and new revenue opportunities as the two networks are integrated.
For Frontier, the takeover offers investors a guaranteed exit at a premium and greater financial stability than remaining independent in a highly competitive broadband market. After clearing federal review, the transaction received unanimous approval from the California Public Utilities Commission, removing the final regulatory hurdle and allowing Verizon to target a closing date of 20 January 2026.
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Why it’s important
This approval signals a major moment in the U.S. telecommunications landscape. At an industry level, the deal reunites Verizon with assets it divested a decade ago and accelerates its strategy to expand high-speed fibre broadband alongside its 5G mobile services.
For Californians, the CPUC’s decision ties the merger to enforceable commitments that go beyond simple transaction clearance. The conditions emphasise affordability for low-income residents, investment in underserved rural networks, and support for diverse suppliers and workforce engagement — priorities that reflect the state’s policy environment and consumer advocacy input.
In doing so, the CPUC aims to ensure that the benefits of consolidation — such as more robust broadband availability and potential economies of scale — do not come at the expense of service quality or equitable access. The regulator’s approach could set precedents for how other states evaluate large telecom mergers amid ongoing efforts to bridge the U.S. digital divide.
