The Federal Communications Commission (FCC) has approved Verizon Communications' $20 billion acquisition of fibre-optic provider, Frontier Communications, following the telecom giant’s decision to rollback its diversity, equity, and inclusion (DEI) programmes.
The deal was first announced in September last year and sees Verizon purchasing Frontier for $9.6 billion, while absorbing $10 billion in Frontier’s debt.
The FCC’s green light comes after Verizon committed to internal policy shifts on corporate DEI efforts.
Verizon stated in a letter to the FCC commissioner: "Verizon has a long history of serving all members in the communities where we operate, which has been a competitive business advantage and enables long-term shareholder value.
"Delivering for customers requires attracting the best talent from across the country. We are committed to creating a culture that leverages and values each person’s unique strengths and talents. These values have been fundamental to our Verizon culture since our founding 25 years ago.
"However, we recognize that the regulatory and policy landscape surrounding diversity, equity, and inclusion (“DEI”) has changed. The Supreme Court, the President’s Executive Orders, and federal mandates require changes in the way companies approach DEI issues moving forward.
"In response to this changing landscape, Verizon has been evaluating its DEI-related programs, HR processes, supplier programs, training programs and materials, and other initiatives. In doing so, Verizon recognizes that some DEI policies and practices could be associated with discrimination.
"For that reason, Verizon reaffirms its commitment to equal employment opportunity and non- discrimination and is modifying its practices and ending its DEI related policies as described below. Verizon is making these changes to its practices not just in name or in the way they are described, but in substance. These changes are effective immediately."
The changes will see Verizon remove DEI language from employee resources, eliminate diversity hiring targets and remove DEI-linked incentives from executive compensation.
“Verizon recognises that some DEI policies and practices could be associated with discrimination,” said chief legal officer Vandana Venkatesh.
FCC Commissioner Brendan Carr, who led a probe into Verizon’s DEI initiatives earlier this year, welcomed the decision. “By approving this deal, the FCC ensures that Americans will benefit from a series of good and common-sense wins,” Carr said.
“The transaction will unleash billions of dollars in new infrastructure builds in communities across the country.”
RELATED STORIES
The DEI reckoning: The rippling effects of Trump's anti-inclusion push
Yahoo scraps DEI pages amid Trump’s policy shifts
