Frontier Communications Ticks Down Amid Delayed Verizon Sale Decision

Frontier Communications shares dropped 0.9% after the California Public Utilities Commission delayed a decision on its sale to Verizon until Q1. The Commission will now make a decision in Q1 2026.

Frontier Communications (NASDAQ:FYBR) saw its shares drop by 0.9% following the California Public Utilities Commission's (CPUC) delay in making a decision on its sale to Verizon (NYSE:VZ) until Q1 2026. The CPUC announced the delay in a regulatory filing on Wednesday, pushing the decision back from the initially scheduled date [2].

The CPUC cited several factors for the delay, including Verizon's commitment to fulfilling legacy Frontier obligations, such as providing Lifeline services and adhering to bankruptcy settlement terms from 2021. Additionally, the commission is examining Verizon's recent move to eliminate its diversity, equity, and inclusion (DEI) policies, which could have implications for maintaining diversity in the utility workforce and supply chain [1].

Verizon remains confident that the regulatory approval process for the acquisition is progressing as planned. The telecom giant has already received approval from eight states, the Department of Justice (DOJ), and the Federal Communications Commission (FCC), with an expected close in early 2026 [1]. However, the delay from the CPUC could potentially impact the timeline for the deal's completion.

The Frontier deal, initially announced in mid-2024, includes a fiber networking business with 7.2 million fiber locations serving 2.2 million subscribers across 25 states. This acquisition would bolster Verizon's fiber connections and expand its customer base, with a combined entity counting approximately 10 million fiber customers across 31 states and Washington, D.C. [1].

Verizon's management has assured investors that the company is productively engaged with the remaining state regulatory agencies and that the MDU service is progressing as planned [1]. The multidwelling unit (MDU) service is expected to contribute more significantly in 2026 than in 2025, leveraging Verizon's extensive millimeter-wave (mmWave) spectrum portfolio to provide broadband services into densely populated locations [1].

References:
[1] https://www.sdxcentral.com/news/verizon-voices-frontier-fiber-deal-confidence/
[2] https://seekingalpha.com/news/4471607-frontier-ticks-lower-as-calif-puc-delays-verizon-decision-until-q1