WASHINGTON, May 16 (Reuters) -
The Federal Communications Commission said Friday it was
approving Verizon Communications's ( VZ ) $20 billion deal to
acquire fiber-optic internet providers Frontier Communications
after the largest U.S. 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. Verizon said all of the
same provisions will apply to Frontier.
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 U.S.
workforce.
"Verizon recognizes that some DEI policies and practices
could be associated with discrimination," said Verizon chief
legal officer Vandana Venkatesh.
Carr, a Republican designated by President Donald Trump in
January, told NBC News-parent Comcast ( CMCSA ) 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 United
States 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."