Verizon has been pursuing the acquisition of Frontier Communications for over a year, with the FCC approving the $20 billion transaction in May 2025. However, to finalize the deal, Verizon now faces a critical challenge: reversing a rollback of diversity, equity, and inclusion (DEI) initiatives that it had announced to satisfy federal regulators but conflicts with California’s stricter requirements.
California’s Approach to DEI
The California Public Utilities Commission (CPUC) is poised to approve Verizon’s acquisition of Frontier, contingent on Verizon complying with a set of stringent DEI requirements unique to the state. The CPUC’s Public Advocates Office pointed out that Verizon’s rollback of most DEI programs, a move previously made under pressure from the Trump administration to satisfy federal regulators, falls short of California’s standards.
As a result, Verizon finds itself in a paradoxical situation: commitments made on the federal level do not automatically align with state laws, forcing the company to revisit and revise its DEI commitments to move forward with the acquisition in California.
Public Opinion: Who Should Verizon Prioritize?
Looking Ahead: The Road to Approval
While Verizon waits for California’s approval, the company continues to expand its broadband footprint. In Q3 2025, Verizon reported adding a record 133,000 fiber subscribers, increasing its total broadband customer base to 3.3 million. The acquisition of Frontier is a strategic move to gain a larger share of the growing fiber market.
