The Public Counsel Section of the Washington State Attorney General’s Office has recommended that state regulators not approve the sale of Verizon Northwest’s local and long distance telephone services in Washington to Frontier Communications because the transaction, as proposed, is not in the public interest.
A spokesman says that, as proposed, the transaction raises serious risks that Verizon customers will be transferred to a new company that will be financially weakened by the takeover, adding that officials are concerned those customers could experience poorer service quality.
Verizon Northwest provides local landline telephone service to more than 500,000 customers in the state.
In May, Verizon Communications announced plans to divest its local landline operations in 14 states through the sale to Frontier – Frontier does not currently operate in Washington.
If the state’s Utilities and Transportation Commission decides to approve the transaction, Public Counsel recommends that it impose conditions addressing the identified risks, including monetary guarantees from Verizon, a commitment by Frontier to increase high-speed broadband availability, and no increases in rates or decreases to service for 24 months after the close date.
The commission is expected to issue a decision in early 2010.
