Frontier Sticks Its Nose Into the nTelos/FiberNet Deal

August 18th, 2010 by · 1 Comment

Fresh off its acquisition of all those rural lines from Verizon, Frontier Communications (NYSE:FTR, news, filings) has raised issues with the proposed purchase of FiberNet from One Communications by nTelos (NASDAQ:NTLS, news, filings).  Apparently, these guys actually enjoyed all that sharp elbow work they had to endure from the West Virginia PSC and politicians in general back in the Spring, because they're back for more.  Well, maybe not more of the same as they are on the other side of the fence this time.

Specifically, Frontier wants the deal studied to see if conditions need to be applied just as were applied to its own acquisition.  Just what conditions might be needed to guarantee 'competitive equity' between the ILEC and its much smaller CLEC competitor aren't quite clear.  Frontier also wants to explore what operational issues the consolidation might have since they interconnect with both FiberNet and nTelos.

For most carriers West Virginia is off the beaten path, and I know little about the competitive dynamics in the state.  Does Frontier have a valid point here, or are they just trying to slow down the competition and keep their lawyers busy?

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Categories: CLEC · Government Regulations · ILECs, PTTs · Mergers and Acquisitions

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1 Comment, Add Yours!


  • Dave Rusin says:

    The game of chess in telecoms continues. It is my understanding and opinion, that this move by FTR is to slow down they transaction.

    Why?

    Because OneComm NEEDS the cash from this transaction.

    If FTR can prolong things or cause the deal to dissolve OneComm is on pretty thin ice financially and perhaps can be bought in6-months to a year cheap.

    This has less to do about West Virginia and more about OneComm needing cash.

    What a game …

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