Frontier To Use CAF Phase II Funds for Broadband Deployment in Areas Inherited From Verizon Transaction
If Frontier's acquisition of Verizon's wireline services in California, Texas and Florida (see 1502050059) is approved before the start of 2016, it will use money allocated from the FCC through Phase II of the Connect America Fund to facilitate broadband…
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deployment in high-cost areas of California and Texas that it will acquire, the company said in an FCC filing. Frontier told the commission in the filing it "has aggressively pursued federal and state broadband support in its current service areas, and will continue to do so in [Verizon's transferred] service areas." The company also said it plans to use about $32 million of CAF Phase II support annually through the next six years for broadband deployment in Verizon's high-cost service areas of California it's in the process of buying, and $16.5 million of CAF Phase II funds throughout the next six years to deploy "high speed broadband to around 37,000 locations in high cost areas" of Texas. "Although Frontier has not yet formulated detailed plans for enhancing broadband deployment and services in the transferring companies' service areas, it anticipates that it will start with the CAF Phase II projects, which would result in significant builds in both California and Texas," it said in the filing. The CAF Phase II projects also will improve its network speed and service, Frontier said, and will require an investment of "substantial amounts of its own capital, in addition to CAF Phase II funding" to complete the high-cost builds.