The Federal Communications Commission said Friday it was approving Verizon Communications’s $20 billion deal to acquire fiber-optic internet providers Frontier Communications after the largest US telecom company agreed to end its diversity, equity and inclusion programs.
Verizon agreed to buy Frontier in September for about $9.6 billion and absorb $10 billion in Frontier debt.
Federal Communications Commission chair Brendan Carr said “by approving this deal, the FCC ensures that Americans will benefit from a series of good and common-sense wins. The transaction will unleash billions of dollars in new infrastructure builds in communities across the country.”
In February, Carr said he was opening a probe of Verizon for its promotion of DEI programs and said it could be a factor in the Frontier deal.
Verizon said in a letter to Carr seen by Reuters the company was removing its “Diversity and Inclusion” website and removing references to DEI from employee training and making other changes to hiring, career development, supplier diversity and corporate sponsorship practices.
The FCC said Verizon will be able to upgrade and expand Frontier’s existing network in 25 states, bringing more fiber to more communities. With the deal, Verizon expects to deploy fiber to 1 million or more American homes annually.
Carr also touted commitments Verizon made to tower and telecom crews.
Verizon will no longer maintain any workforce diversity goals and will drop a component of its management compensation plan that historically included a goal to increase the representation of women and minorities in the company’s US workforce.
“Verizon recognizes that some DEI policies and practices could be associated with discrimination,” said Verizon chief legal officer Vandana Venkatesh in the letter saying the change were effective immediately.
Carr, a Republican designated by President Trump in January, told NBC News parent Comcast in February he was opening a similar probe into the company’s promotion of DEI programs.
Trump in January issued sweeping executive orders to dismantle diversity, equity and inclusion programs in the US and pressured the private sector to join the initiative.
Democratic FCC Commissioner Anna Gomez criticized Verizon as “yet another company capitulates to the administration’s attempts to micromanage employment practices and impose heavy regulatory burdens on companies that require the FCC’s approval of their transactions.”