FCC Green-Lights Verizon’s Acquisition Deal Following DEI Shutdown

Verizon said it will no longer consider identity-based goals during its hiring or promotion processes.
FCC Green-Lights Verizon’s Acquisition Deal Following DEI Shutdown
A person walks by a Verizon store in New York City on Nov. 22, 2021. Andrew Kelly/Reuters
Naveen Athrappully
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The Wireline Competition Bureau of the Federal Communications Commission (FCC) has approved Verizon’s $20 billion acquisition of Frontier, the FCC said in a May 16 statement.

“Verizon has also committed to ending DEI-related practices as specified in the FCC’s record and has reaffirmed the merged entity’s commitment to equal opportunity and nondiscrimination,” the agency said, using the abbreviation for diversity, equity, and inclusion.

“This will ensure that the combined business will enact policies and practices consistent with the law and the public interest.”

The FCC approval comes a day after Verizon said in a letter to agency Chairman Brendan Carr that the company eliminated DEI-specific roles and removed diversity references from employee training and marketing.

“Verizon recognizes that some DEI policies and practices could be associated with discrimination,” Vandana Venkatesh, the company’s chief legal officer, said in the May 15 letter.

The changes were being made “not just in name or in the way they are described, but in substance.”

The company shall no longer take into account identity-based goals when considering hiring, promotions, and bonuses for executives. Verizon said it updated supplier and sponsorship policies to remove gender- and race-based criteria.

In a May 16 post on social media platform X, Carr praised Verizon’s decision to end DEI, calling it a “good step forward for equal opportunity, nondiscrimination, and the public interest.”

In February, Carr suggested that Verizon’s DEI efforts could influence the agency’s decision on the Verizon–Frontier deal.

With the transaction now approved, Verizon can upgrade and expand Frontier’s existing network spread across 25 states. Verizon is expecting to deploy fiber connections to 1 million or more homes every year, the FCC statement said.

“By approving this deal, the FCC ensures that Americans will benefit from a series of good and commonsense wins. The transaction will unleash billions of dollars in new infrastructure builds in communities across the country—including rural America,” Carr said.

“This investment will accelerate the transition away from old, copper line networks to modern, high-speed ones. And it delivers for America’s tower and telecom crews who do the hard, often gritty work needed to build high-speed networks.”

Frontier is the biggest fiber-only internet provider in the United States. Verizon’s acquisition is expected to significantly boost Frontier’s fiber network, extending its reach to 25 million homes.

Carr Targeting DEI

President Donald Trump announced that Carr was his choice for the post of FCC chair on Nov. 17, 2024.

“The FCC’s most recent budget request said that promoting DEI was the agency’s second-highest strategic goal,” Carr said in a post on social media platform X later that day. “Starting next year, the FCC will end its promotion of DEI.”

The post included a screenshot of the FCC’s “Strategic Goal 2” at the time, according to which “advancing equity is core to the agency’s management and policymaking processes and will benefit all Americans.”

After Trump signed a presidential action on Jan. 20 to end “radical and wasteful government DEI programs and preferencing,” Carr announced in a Jan. 21 statement that he was ending the FCC’s promotion of DEI, saying it “represents a wasteful expenditure of taxpayer resources.”

“In the very first section of the Communications Act, Congress stated that it created the FCC for the purpose of regulating interstate and foreign commerce in communication ‘without discrimination on the basis of race, color, religion, national origin, or sex,’” he said.

“Promoting invidious forms of discrimination runs contrary to the Communications Act and deprives Americans of their rights to fair and equal treatment under the law.”

Carr said he was eliminating DEI from the FCC’s strategic plan and budget, ending the agency’s DEI advisory group and equity action plan, and getting rid of DEI analysis from FCC economic reports, among other things.

In a March 27 letter, Carr informed Disney CEO Robert Iger that he had ordered a probe into the company’s DEI policies to determine whether these actions constitute racial or other kinds of discrimination.
Naveen Athrappully
Naveen Athrappully
Author
Naveen Athrappully is a news reporter covering business and world events at The Epoch Times.