Verizon's $20 billion acquisition of Frontier Communications has received the green light from the Federal Communications Commission (FCC), marking a significant step in expanding high-speed internet access across the United States. However, the approval came with a notable condition: Verizon agreed to discontinue its Diversity, Equity, and Inclusion (DEI) programs.
As reported by The Intercept, Verizon plans to enhance and broaden Frontier's existing fiber-optic network with the approved merger. The company aims to connect approximately one million homes annually, focusing on underserved rural areas where high-speed internet has been limited. This initiative aligns with national efforts to improve broadband infrastructure and accessibility.
According to The Verge, a pivotal factor in the FCC's approval was Verizon's decision to eliminate its DEI initiatives. In a letter to FCC Chair Brendan Carr, Verizon's Chief Legal Officer, Vandana Venkatesh, outlined the company's plan to:
This move follows Carr's earlier criticisms of Verizon's DEI efforts and his indication that the FCC would withhold approvals from companies maintaining such policies.
The merger also allows Verizon to regain fiber assets it sold to Frontier in 2015. This reacquisition strengthens Verizon's position in the fiber-optic market and supports its goal of delivering high-speed internet services to a broader customer base.
Verizon's rollback of DEI policies to secure regulatory approval highlights the growing influence of federal oversight on corporate practices. It also raises questions about the future of diversity initiatives within the telecommunications industry, especially as other companies may face similar pressures during mergers and acquisitions.
Source: The Verge
