Verizon's $9.6 billion acquisition of Frontier Communications received final approval from the California Public Utilities Commission (CPUC), paving the way for the deal to close on January 20. The approval, granted in a 5-0 vote, came with conditions designed to counter the dismantling of Verizon's diversity, equity, and inclusion (DEI) policies, which were previously impacted by demands from the Trump administration.

The merger, initially agreed upon in September 2024, sees Verizon acquiring Frontier's Internet service provider business, encompassing approximately 3.3 million broadband customers across 25 states. The financial terms involve Verizon paying $9.6 billion in cash and assuming certain liabilities of Frontier.

The CPUC's approval followed months of negotiations, extensive public participation, and testimony from various parties, including consumer advocates and labor organizations. The conditions attached to the approval require Verizon to invest in deploying more fiber and wireless infrastructure. Furthermore, Verizon is obligated to offer a $20-per-month internet service to low-income individuals for the next decade. These conditions are designed to promote digital equity and inclusion, effectively replacing the DEI initiatives that Verizon had to discontinue.

Verizon's acquisition of Frontier represents a significant consolidation in the telecommunications industry. The move allows Verizon to expand its broadband footprint and compete more effectively with other major players in the market. The CPUC's conditions highlight the growing importance of digital equity and the role of regulatory bodies in ensuring that technological advancements benefit all segments of society.

Looking ahead, the successful integration of Frontier's operations into Verizon will be crucial. The deployment of new infrastructure and the provision of affordable internet services will be key factors in determining the long-term success of the merger and its impact on the broader telecommunications landscape. The CPUC's decision sets a precedent for future mergers and acquisitions in the industry, signaling a commitment to ensuring that such deals align with broader societal goals of equity and inclusion.