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Telecommunications industry

Verizon's Regulatory Update: Ex Parte Communication and Diversity Efforts

Strategic Insights

— 1 min read

Verizon Communications Inc. has issued a regulatory update regarding its Joint Application with Frontier Communications for approval of the transfer of control of several Frontier subsidiaries to Verizon. The update includes a notice of ex parte communication between Verizon representatives and advisors to Commissioners John Reynolds and Houck, focusing on diversity, equity, and inclusion (DEI) practices and compliance with CPUC General Order 156. Verizon emphasized the need for a regulatory decision on the Frontier acquisition in 2025 to infuse Frontier with stability and funds to continue fiber deployment in California.

Key Takeaways:

  • The ex parte communication occurred on August 29, 2025, between Verizon representatives and advisors to Commissioners John Reynolds and Houck, focusing on DEI and compliance with CPUC General Order 156.
  • Verizon emphasized the need for a regulatory decision on the Frontier acquisition in 2025 to infuse Frontier with stability and funds to continue fiber deployment in California.
  • Verizon has a fully executed settlement with the California Emerging Technology Fund (CETF) and is close to finalizing a settlement with Cal Advocates.
  • Verizon is committing to spend at least $500 million over five years with California small businesses as part of its new $5 billion Small Business Supplier Accelerator program.
  • The program aims to help small businesses by offering faster payments and lower insurance and indemnity requirements, targeting disadvantaged and low-income areas.
  • Verizon has an existing diverse workforce in California, where 71% of employees are persons of color, and is open to launching a new workforce development initiative with a state institution such as Cal State University.
  • Verizon proposes a schedule to facilitate a Commission decision at its December 18, 2025 meeting, involving foregoing or limiting evidentiary hearings and moving up briefing deadlines to September and October.

Statistics:

  • Frontier has financial challenges with over $11 billion in debt.
  • UTC clearance from the U.S. Department of Justice expires in February 2026.
  • Verizon is committing to spend at least $500 million over five years with California small businesses as part of its new $5 billion Small Business Supplier Accelerator program.
  • 71% of Verizon's employees in California are persons of color.

Sources:

  • Verizon Communications Inc. (filed October 18, 2024)
  • California Public Utilities Code Section 854 A.24-10-006
  • Rule 8.4(a) of the Rules of Practice and Procedure of the California Public Utilities Commission
  • Jesus G. Roman, Attorney for Verizon, September 3, 2025
  • DLA Piper, outside counsel for Verizon

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