According to a new 46 page Illinois study by a state Judge, Verizon's proposed sale of their networks in Illinois would harm consumers. The $8.5 billion deal immediately infuses Frontier, which has 2.3 million customers, with 4.8 million new residential and small-business phone lines and 1 million broadband connections. Such a huge influx of new customers will restrict Frontier's ability to offer low-price, quality service -- and to raise funds for upgrades, improvements and expansion:
Lisa Tapia said in the 46-page report that allowing Frontier to purchase the Verizon lines in Illinois "will diminish Frontier s ability to perform its duties to provide adequate, reliable, efficient, safe and least-cost public utility service." She also concluded the acquisition also could hurt Frontier s ability to raise capital by taking on the additional financial obligations. Opponents and supporters filed hundreds of pages of testimony prior to release of the recommendation.
Unions and consumer advocates continue to protest the deal, given the debt and huge influx of support issues will likely put broadband expansion and upgrades on the back burner. Of course the alternative (having Verizon stay in markets it doesn't want to upgrade) isn't particularly compelling either. Despite repeated warnings and studies within regulatory agencies showing the negative impact of the deal, regulators in six states have proceeded to unanimously approve the deal anyway. In other words, expect Illinois regulatory approval in short order.
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