| Frontier Purchase of Verizon Territory in Oregon |
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The Commission is reviewing the proposed sale of Verizon’s landline customers in Oregon to Frontier Communications. Frontier is based in Stanford, Conn. The company focuses on serving small towns and rural areas.
We received the application May 29, 2009.
Frontier currently has12,000 lines in Oregon and serves the communities of Azalea, Canyonville, Cave Junction, Days Creek, Glendale, Myrtle Creek, O’Brien, Riddle, Selma ,Wolf Creek and historically has a good record for service quality in Oregon.
The Commission’s overriding concern is that customers will not be hurt by the sale. To that end, the Commission will look very closely at a wide range of issues including acquisition due diligence, financial statements, credit ratings, cost of capital, engineering, service quality, customer support, staffing.
Verizon is selling approximately 310,000 access lines in its Oregon territory. It is not selling any of its wireless business. Verizon and Frontier have similar transactions in many of the states Verizon serves so it is not unique to Oregon.
The deal is expected to take about 12 months to complete as Frontier needs approval from various regulators and Frontier shareholders.
The transaction has docket number UM 1431. You can follow the sale on the PUC website
using the eDockets tool.
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