Stamford’s Frontier Communications is likely just two weeks away from sealing its $2 billion deal to acquire a big piece of AT&T’s Connecticut business.
The Public Utilities and Regulatory Authority issued a draft decision Tuesday signing off on the deal, which according to the Office of Consumer Counsel (OCC) is the largest single acquisition in state history. PURA said it intends to issue a final decision on Oct. 15.
The decision means that regulators feel Frontier has the necessary financial, technological and managerial suitability to control Southern New England Telephone — AT&T’s Connecticut wireline and video subsidiary.
It also signals PURA’s acceptance of additional pledges Frontier made last month to the OCC and attorney general.
PURA previously rejected the lengthy settlement agreement between the parties, which contained pledges from the telecom provider to invest $63 million in infrastructure, make charitable donations and freeze landline and broadband pricing for three years.
PURA said in late August that the infrastructure investment commitment was not well defined and that some of Frontier’s financial commitments were less than AT&T’s. It also pointed out that market conditions would likely hold pricing steady.
But regulators were appeased by additional pledges from Frontier, which included:
• Investments totaling $875,000 to support original content creation by public, educational and government access channels, and to upgrade the network that distributes that content;
• Acknowledgement of PURA’s authority to review compliance with the agreement and impose penalties for any unkept commitments;
• Filing a disaster preparedness and response plan within 60 days of final approval;
• Providing PURA with a status update regarding network modernization progress and a comprehensive network modernization strategy plan three months and six months, respectively, after final approval;
• Participation in PURA’s review of cybersecurity standards and oversight.
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