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Contact: Marty Berkowitz
(614) 387-2962

Consumers’ Counsel gains consumer benefits through Frontier-Verizon merger agreement

COLUMBUS, Ohio – December 9, 2009 – Improving residential customers’ access to broadband and service quality are benefits contained in an agreement allowing the merger of Frontier Communications Corp. and Verizon Communications, Inc.

The agreement was filed late yesterday by the two companies, the Office of the Ohio Consumers’ Counsel (OCC) and the staff of the Public Utilities Commission of Ohio (PUCO). PUCO commissioners still must approve the agreement.

“This agreement will allow the service received by customers to be improved with no increase in basic service rates, while committing Frontier to expand broadband into more communities currently served by Verizon,” said Consumers’ Counsel Janine Migden-Ostrander. “Broadband is a vital communications option for residential customers. Ohioans in more rural parts of our state deserve the opportunity to gain the benefits of broadband, including the availability of Internet-based telephone services.”

Specifically, the agreement requires Frontier to:

• Deploy broadband facilities in 85 percent of Verizon’s current Ohio service area by the end of 2013 based on a plan to be developed by Frontier, the OCC and PUCO staff;

• Commit to a cap on basic local telephone rates until broadband deployment reaches 85 percent;

• Invest in service upgrades in each of the next three years;

• Submit reports detailing the company’s annual service performance, including how it handles outages; and

• Commit to ensuring a smooth transition of Verizon customers to Frontier’s operations.

Frontier and Verizon filed their merger request May 29. 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. On the national level, Frontier serves approximately 2.3 million customers in 24 states. Nationally, the Frontier merger would add 4.8 million Verizon telephone lines in 14 states to Frontier’s 2.3 million existing lines.

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 website at www.pickocc.org.