Verizon won regulatory approval for a $20 billion acquisition of domestic fixed line service provider Frontier Communications, but the clearance cost the operator its diversity, equity and inclusion (DEI) practices.

The US Federal Communications Commission (FCC) announced its clearance for the deal on 16 May, with chair Brendan Carr (pictured) hailing the union as delivering wins for consumers and employees.

Carr said the deal would “unleash billions of dollars in new infrastructure builds in communities across the country, including rural” areas.

“This investment will accelerate the transition away from old, copper line networks to modern, high-speed ones.”

Carr highlighted job benefits for the “tower and telecom crews who do the hard, often gritty work needed to build high-speed networks”.

He pointed to commitments Verizon made to the Communications Infrastructure Contractors Association to “remove costly burdens” and “provide good-paying jobs”.

The FCC chair praised Verizon’s decision to end DEI initiatives, branding it a win for equal opportunity in employment which would ensure “the combined business will enact policies and practices consistent with the law and the public interest”.

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Reuters reported one US politician accused the FCC of using its power over mergers and acquisitions as a weapon. Bloomberg stated Verizon informed Carr of its intention to end DEI initiatives and reassign staff on 15 May.

Verizon’s chief legal officer Vandana Venkatesh told Reuters there are concerns over DEI initiatives being perceived as discriminatory.

The outlet reported Verizon SVP Kathy Grillo said the companies aim to complete the acquisition early in 2026.

Verizon made its pitch for Frontier Communications in September 2024, with the latter’s shareholders approving the deal two months later.

The FCC’s clearance came on the same day cable giant Charter Communications lined up a $34.5 billion acquisition of rival Cox Communications.