Verizon deal to acquire Frontier approved after DEI changes
[WASHINGTON] The US Federal Communications Commission (FCC) on Friday (May 16) approved Verizon Communications’s US$20 billion deal to acquire fibre-optic Internet providers Frontier Communications after the largest American telecom company agreed to end its diversity, equity, and inclusion (DEI) programmes.
Verizon agreed to buy Frontier in September for about US$9.6 billion and absorb US$10 billion in Frontier debt.
Commission chair Brendan Carr noted: “By approving this deal, the FCC ensures that Americans will benefit from a series of good and common-sense wins. The transaction will unleash billions of dollars in new infrastructure builds in communities across the country.”
In February, Carr said that he was opening a probe of Verizon for its promotion of DEI programmes and added it could be a factor in the Frontier deal.
Verizon said in a letter to Carr seen by Reuters the company was removing its “Diversity and Inclusion” website and removing references to DEI from employee training and making other changes to hiring, career development, supplier diversity, and corporate sponsorship practices. Verizon said that all the same provisions will apply to Frontier when the deal is complete.
Verizon senior vice-president Kathy Grillo said after completing the deal in early 2026, the telecom company will “be well-positioned to provide world-class fibre and wireless broadband services to American consumers across the country”.
A NEWSLETTER FOR YOU
Friday, 12.30 pm
ESG Insights
An exclusive weekly report on the latest environmental, social and governance issues.
The FCC said that Verizon will be able to upgrade and expand Frontier’s existing network in 25 states, bringing more fibre to more communities. With the deal, Verizon expects to deploy fibre to one million or more American homes annually.
Carr also touted commitments Verizon made to tower and telecom crews.
Verizon will no longer maintain any workforce diversity goals and will drop a component of its management compensation plan that historically included a goal to increase the representation of women and minorities in the company’s US workforce.
“Verizon recognises that some DEI policies and practices could be associated with discrimination,” said Verizon chief legal officer Vandana Venkatesh.
US President Donald Trump in January issued sweeping executive orders to dismantle DEI programmes in the country and pressured the private sector to join the initiative.
Democratic FCC Commissioner Anna Gomez criticised Verizon: “Yet another company capitulates to the administration’s attempts to micromanage employment practices and impose heavy regulatory burdens on companies that require the FCC’s approval of their transactions.”
Share with us your feedback on BT's products and services
