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Wheelings & Dealings: Connecticut Officials Say Frontier's Purchase of AT&T Landlines Good for Consumers

TMCnet Feature

October 16, 2014

Wheelings & Dealings: Connecticut Officials Say Frontier's Purchase of AT&T Landlines Good for Consumers

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By Joe Rizzo
TMCnet Contributing Writer

The Public Utilities Regulatory Authority gave its final approval on October 15, 2014, to Frontier Communications Corp, giving the company the ability to purchase AT&T’s (News - Alert) landline, broadband and television businesses in Connecticut. Frontier is a U.S. telephone company based in Stamford, CT, which mainly serves rural areas and smaller communities.


Why is AT&T selling its existing assets in Connecticut to Frontier? According to AT&T, it seems that its business in the Northeast is increasingly focusing on wireless and advanced communications solutions for business customers. Frontier's focus is on operating incumbent local exchange companies in markets like Connecticut. This does appear to be a move that makes sense for both companies, as well as for the customers in Connecticut.

The services that will be included as part of the sale include:

  • Local exchange services (access lines, trunks, ISDN, Centrex and calling features such as Caller ID and Call Waiting).
  • Local usage, Intra-LATA Toll.
  • Long Distance services provided by SNET America, Inc.
  • Intra-LATA Data Transport Services (Private Line, SONET, Metro Ethernet).
  • Internet access (broadband high-speed Internet access, Internet).
  • U-verse Internet, Voice and TV services.
  • Wholesale services (Switched Access, Special Access, Resale, Interconnection, UNEs).

This deal has been 10 months in the making, in which the Public Utilities Regulatory Authority originally rejected the settlement. The concern was that it lacked necessary enforcement mechanisms to make sure that all of the promises would be kept. Frontier guaranteed that it would invest $63 million over the next three years to improve broadband services in Connecticut. In addition, it would freeze residential telephone service rates, which include basic Internet services for three years and it would discount rates for various services to eligible veterans.

In a statement, Governor Dannel P. Malloy said “Today’s approval of Frontier Communications both protects customers and provides increased commitments to our state.” The deal was also seen as having merit from the Communications Workers of America (CWA (News - Alert)) Local 1298, which has been critical of AT&T’s business practices and attention to service.

Bill Henderson, who is the union president, said “From the very beginning, Frontier has been fair and upfront with the CWA and its leadership, which led to a labor agreement that has substantial benefits for both our members and the company. We welcome the opportunity to partner with Frontier to provide extraordinary service to our customers and neighbors.”

According to Frontier, about 2,600 AT&T employees, based in Connecticut are expected to move to Frontier when the acquisition is completed, which is expected to happen on October 24th. While most of the improvements are slated toward broadband speeds throughout the state, at least $3 million will be spent focusing on expanding into areas that are either underserved or currently not served at all.




Edited by Maurice Nagle


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