Office of the Ohio Consumers' Counsel

Media Center

Contact: Ryan Lippe
(614) 466-7269

Frontier, Verizon telephone merger needs scrutiny, local public hearings

COLUMBUS, Ohio – June 10, 2009 – A proposed merger of Frontier Communication Corporation and Verizon Communications, Inc. that could affect approximately 435,000 Ohioans’ residential landline service requires scrutiny before being authorized in Ohio. The Office of the Ohio Consumers’ Counsel (OCC) said today consumer input, including public hearings, and a close examination by state regulators is necessary.

Frontier and Verizon filed their merger request May 29. Under Ohio law, the merger is automatically approved if the Public Utilities Commission of Ohio (PUCO) fails to suspend the process within 30 days of the application.

“Time and attention is needed to ensure this proposed merger will not have negative consequences on hundreds of thousands of Ohio residents currently served by Frontier and Verizon,” said Consumers’ Counsel Janine Migden-Ostrander. “The law puts the burden on these telephone companies to show that the public will benefit and that adequate service with reasonable rates will result. Suspending the automatic approval process and holding local public hearings is needed for that to occur.”

The proposed merger involves the transfer of Verizon’s Ohio operations, the second largest local telephone provider in Ohio with approximately 435,000 residential customers in 77 counties, to Frontier, which serves 480 residential customers in a small portion of Williams County.

The OCC suggested hearings be held in Ashland, Athens, Bowling Green, Bryan, Celina, Marion, New Philadelphia, Norwalk, Port Clinton, Portsmouth and Troy so current customers of both companies may conveniently express their opinions.

While the OCC very much welcomes Frontier’s commitment to expanding broadband, there should be a hearing held to review details, Migden-Ostrander said. The OCC also believes there are significant questions regarding Frontier’s ability to make much-needed improvements to Verizon’s service quality.

Under state law, the PUCO cannot approve a merger unless the companies demonstrate the transaction promotes the public convenience and will result in adequate service at reasonable rates.

About the Office of the Ohio Consumers' Counsel

The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, represents the interests of 4.5 million households in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals. To receive utility information, brochures, schedule a presentation or file a utility complaint, residential consumers may call 1-877-PICKOCC (1-877-742-5622) toll free in Ohio or visit the OCC Web site at www.pickocc.org.