Wall Street Wins, Ohio Loses in Proposed Telephone Deal
We have the power to change it.
The Verizon-Frontier Deal puts the fat cats on Wall Street ahead of hard working families in Ohio. Now is the time for us to say "No Deal!"
The proposed sale would transfer all of Verizon’s landline telephone operations in Ohio to Frontier, a small Connecticut based company.
The sale would put $3.3 billion dollars into Verizon’s coffers -- tax free -- and leave Frontier buried in debt.
Similar deals have had disastrous effects for consumers and communities. In New England, Verizon had sold its landlines to FairPoint, which is now on the verge of bankruptcy.
Ohioans are concerned. Will Frontier be able to service the state during emergencies? How will Frontier be able to provide broadband service when it lacks the technology and investment to put into it?
We have the power to change the deal.
Regulators in Ohio can block or modify it if they see it as a risk to the public or violates existing laws. Here's how you can help: Sign our petition today to express your concerns.
The Real Deal Blog Ohio
Union intervenors rip proposed Frontier settlement
In a legal brief filed with the Public Utilities Commission of Ohio (PUCO) on Friday, CWA and IBEW urged that commissioners reject the proposed sale of Verizon's landlines to Frontier as being contrary to the public interest.
In addition, the unions urged rejection of a proposed stipulation as being "wholly inadequate in that it fails to meaningfully address the fundamental problems with the proposed transaction." This stipulation was reached by the PUCO staff, the Office of the Ohio Consumers' Counsel, Verizon and Frontier on December 8, the day before the Commission's scheduled hearing on the proposed deal.
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Washington State utilities commission staff urge rejection of Verizon’s plan to sell landlines
The staff of the Washington Utilities and Transportation Commission (WUTC) recommended that state regulators reject the proposed sale of Verizon's landlines in Washington State to Frontier on Tuesday.
The staff’s position is a setback for Verizon and Frontier managers who last week touted decisions by regulators in three states -- California, Nevada and South Carolina -- to approve the sale. The number of landlines in these three states is relatively minor, and regulatory approval was expected.
"The staff recommendations along with the recent bankruptcy of FairPoint are a wake up call for state regulators," said CWA District Four's Hetty Scofield. "Verizon should not be allowed to walk away with $3.3 billion tax free while leaving consumers and workers to pick up the pieces if Frontier falters. Now is the time for regulators to blow the whistle on corporate greed and just say 'no' to this deal."
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More Daylight will be shined on deal in Ohio!
The Public Utilities Commission of Ohio (PUCO) earlier this week unanimously voted in favor of a motion to hold an evidentiary hearing on Frontier's proposed acquisition of Verizon's landlines in Ohio. Frontier and Verizon filed their merger request on May 29.
The Office of the Ohio Consumers' Counsel (OCC) petitioned PUCO to hold the companies accountable to service quality standards. The OCC has said that the deal does not present specific benefits for consumers in Ohio and has questioned Frontier's ability to maintain and improve residential customer service in the state once the deal in completed. Read More >
Purchasing Verizon’s landlines could leave Frontier shareholders with a failing company
Frontier shareholders and its top executives heard from an employee about how the proposed deal to acquire Verizon's assets in West Virginia and thirteen other states "may be good for Verizon, but will leave Frontier a much weaker company."
With support from the AFL-CIO and Connecticut CWA Local 1298, Elisabeth Choate traveled to Stamford, CT and attended the Frontier special meeting where shareholders voted to approve the deal. A movement in West Virginia and the other thirteen states led by the CWA and the International Brotherhood of Electrical Workers (IBEW) to oppose the deal has been growing because of concerns that Frontier's small size and fragile finances won't allow it to provide better service or make significant upgrades in the availability of high speed Internet access. Read More >
Congressmen oppose tax loophole used in proposed Verizon-Frontier Deal
The entire five-member House delegation from northern New England recently wrote a letter to Charles B. Rangel (D-NY) Chairman of the House Committee on Ways & Means, urging him to restrict the use of a tax-loophole that Verizon hopes to employ in the proposed sale of its landlines in 14 states, including West Virginia, to Frontier Communications. By using the loophole, Verizon would avoid paying taxes on the $3.3 billion it will receive from Frontier. Read More >
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