California clears Verizon's $20 billion acquisition of Frontier

California’s Public Utilities Commission unanimously approved Verizon Communications’ roughly $20 billion acquisition of Frontier Communications, removing the last major state-level hurdle and clearing a path for the companies to close the deal on Jan. 20, 2026. The commission adopted the decision after Verizon agreed to a package of network-deployment, consumer-assistance and workforce and procurement conditions intended to preserve service in rural areas and protect low-income consumers.

Verizon reached agreement in September 2024 to buy Frontier for about $9.6 billion in cash and to assume roughly $10 billion of Frontier debt, putting the combined transaction value near $20 billion. Federal approvals were obtained earlier; the CPUC pushed for a decision before the Justice Department’s approval window expires on Feb. 13 to avoid reopening a lengthy antitrust review. With the unanimous vote of all five commissioners, the companies said they expect the transaction to close on Jan. 20, subject to administrative closing steps.

The CPUC’s order requires several specific commitments in California. Verizon must deploy broadband across locations served by 88 rural wire centers, a requirement the company opposed in draft form but for which the final order incorporated revisions requested by Verizon intended to reduce the cost burden. The company also committed to invest in 75,000 new fiber locations in the state and to construct 25 new wireless towers to expand service in rural communities. A draft version of the order described a target of 100 Mbps down and 20 Mbps up for locations served by the 88 wire centers within five years, a metric Verizon argued would be unrealistic in extremely remote areas; the final adopted decision contains ordering paragraphs that implement specific obligations.

Consumer protections in the approval require Verizon to provide free broadband service to many low-income households in California for at least 10 years, a condition aimed at preventing loss of access for vulnerable customers during network transitions. The CPUC also extracted workforce and procurement commitments after Verizon informed federal regulators it would end certain internal diversity, equity and inclusion programs. The commission’s conditions call for recruiting pipelines aimed at underrepresented groups, periodic meetings with state officials on procurement and retention, retention of Frontier’s small-business accelerator for five years, and quarterly employee satisfaction surveys that include inclusion-related questions.

Verizon said the combination will strengthen its product set and geographic reach. In company comments Chief Executive Dan Schulman said, "uniquely positioned to offer our customers the best combined mobility and fiber experience for mobile, home internet, and other essential services across a significantly expanded footprint." Verizon has said it plans to upgrade Frontier’s network across roughly 25 states and to deploy fiber to one million or more U.S. homes annually; the combined assets are expected to expand fiber passings to nearly 30 million homes and businesses across 31 states and Washington, D.C.

The transaction will also carry immediate market mechanics: Frontier common stock was scheduled to trade for the last time on Jan. 16 and to be delisted, and Verizon plans to discuss the deal’s financial impact on its Jan. 30 earnings call. Regulators framed the CPUC conditions as protections to balance the deal’s market benefits with public-interest obligations for rural service, consumer access and workforce diversity.