Illinois Next Up To Approve Vertizon/Frontier Deal - Though study argues the deal isn

[GNG News Guy]

According to a new 46 page Illinois study by a state hearing officer, Verizon's proposed sale of their networks in Illinois would harm consumers. The $8.5 billion deal immediately infuses Frontier, which has 2.3 million customers, with 4.8 million new residential and small-business phone lines and 1 million broadband connections. Such a huge influx of new customers will restrict Frontier's ability to offer low-price, quality service -- or to raise funds for upgrades:Lisa Tapia said in the 46-page report that allowing Frontier to purchase the Verizon lines in Illinois "will diminish Frontier s ability to perform its duties to provide adequate, reliable, efficient, safe and least-cost public utility service." She also concluded the acquisition also could hurt Frontier s ability to raise capital by taking on the additional financial obligations. Opponents and supporters filed hundreds of pages of testimony prior to release of the recommendation.
Unions and consumer advocates continue to protest the deal, given the debt and huge influx of support issues will likely put broadband expansion and upgrades on the back burner. Of course the alternative (having Verizon stay in markets it doesn't want to upgrade) isn't particularly compelling either. It's amusing to watch states repeatedly issue warnings and studies that find the deal isn't a good deal for consumers, only to have their regulators unanimously approve the deal just weeks later.

In other words, expect Illinois regulatory approval in short order.