[RTC List] Frontier proposed purchase of Verizon

[Seth Johannesen]

FYI:  In regards to the Verizon rural CA locations proposed sale to Frontier, I was informed today by a Verizon rep. that the Garberville/Laytonville and the Willow Creek Verizon service areas are NOT in the proposed sale to Frontier.

Seth
101Netlink


  To everyone who's interested in the ARRA/broadband stimulus money discussion, this recent development could be a major game changer.  William Van Hefner sent the press notice yesterday and I see that no one really paid much notice.  Today I received the following message from one of my mailing lists which I think would be of general interest:


  A day after announcing its $5.25 billion acquisition of the remaining rural landline business of Verizon, Frontier Communications is reporting that it will pursue broadband stimulus funds from the federal Recovery Act. In Frontier's press release on the deal, Wilderotter states,"With more than 7 million access lines in 27 states, we will be the largest pure rural communications provider of voice, broadband and video services in the U.S. Frontier is committed to providing our customers with state-of-the-art technology and innovative products."

  http://www.stimulatingbroadband.com/2009/05/frontier-gains-immediate-broadband.html

  Nice map of where Frontier will be looking to spend gov't money some day;
  http://2.bp.blogspot.com/_YsFwcBFHCvc/SguYOgouVXI/AAAAAAAAASI/7YlEaxcKMXc/sl600-h/frontier_map.jpg
  -----------------------------------------------------------------------------------


  First thing - look at the map and you'll appreciate that they control all of Del Norte county and a tiny portion of Humboldt Co.


  Next - if you read the article, please note the following interesting points:


  A Game Changer in 14 States
  The Frontier acquisition of new operating territories in the 14 states is thus a potential game changer for communities in and adjacent to those areas that are today "unserved" by broadband facilities. This is particularly true given the fact that Verizon executives have repeated the carrier's displeasure with the open access strictures of ARRA, leading most of us in the community of 'broadband stim' observers to conclude that the firm will not apply for federal funds.


  Present Federal Rural Telecom Rules of USDA-RUS
  For much of the American telecom industry, rural telecom and the federal programs that subsidize it is a world unto itself which remains arcane if not unfathomable. An understanding of those rules however demonstrates the clear advantages that Frontier has gained in the highly competitive arena defined by both broadband stimulus funds under ARRA, and by existing programs.


  Current rules of the Rural Utilities Service (RUS) division of the US Department of Agriculture (USDA) state that once a rural telecom carrier receives grants or loans for network construction or expansion in a designated area, no additional grants or loans may be issued to any other communications company for that same rural area.


  And finally:
  Our Take (StimulatingBroadband.com): 
  If Frontier can indeed avoid the operational nightmare that has become the Fairpoint franchise in New England, the carrier will achieve a competitive advantage for broadband stimulus funds, and for associated rural telecom federal subsidies, going forward.


  State broadband program directors, community broadband advocates, and in-region carriers from the 14 states about to be part of the new SpinCo entity are well advised to reach out to Frontier.
  ----------------------------------------------------------------------------------------------------------
  In closing, there will be lots of last-minute "surprises" in this process, so we should be ready for these developments and prepared to adjust our plans accordingly.    LG


  On May 14, 2009, at 2:18 AM, William Van Hefner wrote:


    All,

    Just thought that I would pass this along. Verizon is obviously not the
    dominant carrier in the state, but it does serve a large number of rural
    areas of Northern California. With the upcoming sale to Frontier, I think
    it's safe to say that Verizon customers in those areas can say goodbye to
    any chance of getting FiOS service.

    ############

    CHARLESTON, W.Va. (WSAZ) -- Verizon Communications, Inc. announced
    Wednesday plans to sell its landline phone business to Frontier
    Communications.

    According to a Verizon spokesperson, Verizon is selling its entire
    landline business in West Virginia, Ohio, and 12 other states (including
    parts of California).

    "Our landline business in those states (Charleston as well as more rural
    parts of the states) will become part of Frontier once the transaction is
    approved, which we’re estimating will take about a year," Harry Mitchell
    said. "Verizon Wireless and Verizon Business are not affected by this
    deal."

    http://commsxpress.com/globalbandwidth/verizon-sells-landline-business/457/



    -- 
    William Van Hefner - President
    Vantek Communications, Inc.
    e-mail: editor at humboldtonline.com
    http://www.humboldtonline.com


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