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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