SALEM, Ore. - The Oregon Public Utility Commission has unanimously approved the transfer of the local wireline operations of Verizon Communications Inc. (NYSE: VZ) serving residential and small-business customers in the state to Frontier Communications Corporation (NYSE: FTR).
With the announcement of the Oregon Public Utility Commission's decision on Friday (Feb. 26), Oregon becomes the sixth state to approve the transaction following the Arizona Corporation Commission, the California Public Utilities Commission, the Public Utilities Commission of Nevada, the Public Utilities Commission of Ohio and the Public Service Commission of South Carolina.
"By approving this transaction, the Oregon Public Utility Commission is acting in the interest of consumers and commerce in the state," said Tim McCallion, president of Verizon's West region.
"Ultimately, this transaction will allow both companies to concentrate on their respective strengths," said McCallion. "The benefits in Oregon will include increased broadband availability for consumers and small businesses that will be served by Frontier."
At the federal level, the Federal Trade Commission and the U.S. Department of Justice granted the parties' request for early termination of the waiting period required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. Further, Verizon has received a favorable ruling from the Internal Revenue Service regarding the tax consequences of the spinoff and subsequent merger with Frontier. The receipt of this ruling is one of the conditions to the closing of the transaction.
On May 13, 2009, Verizon announced plans to divest its local wireline operations serving residential and small-business customers in predominantly rural and small- to medium-sized areas in 14 states, and that Frontier would acquire these operations.
The operations Frontier will acquire include all of Verizon's local wireline operating territories in Arizona, Idaho, Illinois, Indiana, Michigan, Nevada, North Carolina, Ohio, Oregon, South Carolina, Washington, West Virginia and Wisconsin. In addition, the transaction will include a small number of Verizon's exchanges in California, including those bordering Arizona, Nevada and Oregon.
Regulators in Illinois, Washington and West Virginia, along with the Federal Communications Commission, also must approve the transaction or related transfers. In addition, Frontier has received cable television franchise approval from the 41 communities the company will serve in Oregon and Washington State, subject to meeting certain conditions of such approvals.
Verizon Communications Inc. (NYSE:VZ), headquartered in New York, is a global leader in delivering broadband and other wireless and wireline communications services to mass market, business, government and wholesale customers. Verizon Wireless operates America's most reliable wireless network, serving more than 91 million customers nationwide. Verizon also provides converged communications, information and entertainment services over America's most advanced fiber-optic network, and delivers innovative, seamless business solutions to customers around the world. A Dow 30 company, Verizon employs a diverse workforce of approximately 222,900 and last year generated consolidated revenues of more than $107 billion. For more information, visit www.verizon.com.