EVERETT — A pending sale of Verizon Communications Inc.’s landlines in the Northwest is clearing political hurdles in Washington state, despite concerns that the purchasing company might be taking on more than it can handle.
Connecticut-based Frontier Communications bought 4.8 million phone lines from Verizon earlier this year, but the sale won’t be final until it’s approved by state and federal regulators.
The deal includes an exchange of about 518,000 landline customers in Snohomish County and other parts of northwest Washington.
So far, the plan seems to be meeting with favor from the leaders of cities affected by the change. The Everett City Council voted to approve the transfer Thursday — the latest in a string of affirmative votes from cities including Bothell, Edmonds, Mountlake Terrace and Mukilteo.
“Everett is the 16th city in Washington to determine that Frontier is fully qualified to provide TV service to its residents, based on Frontier’s network expertise, its focus on customer service and its financial strength,” Verizon spokesman Job Davies said.
The Snohomish County Council unanimously approved the sale earlier this month.
Frontier is trying to grow its rural service area. But it has a lot to prove — mainly that it can handle sudden growth that would triple the company’s size.
Other Verizon sales left a lot of fodder for criticism.
Hawaiian Telcom Communications and FairPoint Communications recently bought up Verizon land lines in Hawaii and New England, but the companies struggled under the weight of added service accounts. Hawaiian Telcom declared bankruptcy in 2008, and FairPoint sought Chapter 11 bankruptcy last month.
Union representatives have been some of the most vocal opponents, saying residents and businesses will be the ones who suffer if that pattern emerges again.
“Verizon should not be allowed to walk away with $3.3 billion tax free while leaving consumers and workers to pick up the pieces if Frontier falters,” said Ray Egelhoff, business manager for the Northwest chapter of the telecommunications union. “Now is the time for regulators to blow the whistle on corporate greed and just say no to this deal.”
The State Utilities and Transportation Commission will likely vote on the sale next month. The commission’s staff recommended that regulators vote against the sale, saying consumers don’t stand to benefit from the deal.
The staff recommendation also cited concerns that Frontier has a lower credit rating than Verizon, so it will have to operate with higher costs in Washington state.
The $8.6 billion deal involves landlines in 14 states, and has been green-lighted by the U.S. Department of Justice. Verizon officials said the plan was also approved by regulators in some other states, including California and Nevada.
The Federal Communications Commission will also have to sign off on the sale before it’s complete.
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