CHARLESTON -- The state Consumer Advocate Division believes Frontier Communications hasn’t done its homework in agreeing to take over Verizon Communications’ landline operations in West Virginia and recommends the state reject the deal, according to testimony filed with the state Public Service Commission Friday.
The division said Frontier hasn’t fully analyzed the condition of Verizon’s properties, and as a result it would inherit a substandard communications systems resulting from years of neglect. It also said the business model Frontier is pursuing puts the company at financial risk.
Frontier has proposed acquiring Verizon’s landline operations in one of the largest telecommunication deals in state history. If it were to go through, Frontier would pick up significant portions of the state while Verizon would essentially get out of the landline business and instead largely focus on cell phone service.
The deal must first receive PSC approval. As part of that process, the Consumer Advocate Division reviewed the proposal and raised several concerns about what it found. It recommended PSC reject the plan.
Division Director Byron Harris wrote that Verizon has provided years of substandard service in the state by neglecting upkeep of its landline system.
The division was not sure Frontier had the resources to do the necessary maintenance work.
It noted Frontier would pick up 600,000 additional customers to the 140,000 it already services in West Virginia. However, the company has not addressed how it would upgrade its customer service center to handle that increase in volume, according to the division.
The division raised questions about Frontier’s ability to expand broadband access in the state should the merger go through. It also took issue with a provision it said shields Verizon from any consequences of the takeover.