In a notable move, Verizon recently secured approval from the US Federal Communications Commission (FCC) for a $20 billion acquisition of Frontier Communications. However, this approval came with a decision from Verizon to abandon its diversity, equity, and inclusion (DEI) efforts. Verizon agreed to drop positions focused on DEI, exclude diversity goals from hiring policies, and eliminate DEI language from training, recruitment, and public messaging initiatives. This policy change extends to Frontier upon the deal’s closure.
This decision aligns with increasing political and regulatory pressure in the US against corporate DEI frameworks. Many government bodies and large companies are scaling back such programs under pressure. Prominent tech companies, including Meta, Amazon, and Google, have also reduced their DEI initiatives to comply with the prevailing administration’s stance.
The FCC’s approval allows Verizon to expand its fiber network across the United States, reaching an extra million homes annually, including difficult-to-access rural regions. This acquisition aims to bolster Verizon’s fiber business amid growing competition in the broadband market.
Still, the deal requires further state-level consent. Connecticut regulators have offered conditional support, with a definitive decision expected soon. Verizon anticipates finalizing the acquisition early next year.
The benefits of this acquisition lie in the enhanced fiber outreach, crucial for both rural and urban areas. It allows Verizon to compete more aggressively in the high-speed broadband market. Access to a broader fiber network is expected to strengthen its market position.