CEO Of Frontier Expects AT&T Acquisition To Be Less Of A Struggle Than Similar Deals

Billion dollar acquisitions of old access lines usually take a toll on rural local exchange carriers like Frontier Communications. But CEO of Frontier, Maggie Wilderotter, said the company’s $2 billion acquisition of AT&T access lines in Connecticut is more manageable than similar deals, including Frontier’s acquisition of Verizon access lines for $8.6 billion in 2008.

Previous acquisitions of access lines have burdened acquirers with declining businesses and high costs of upgrading substandard phone lines in areas big phone companies felt disinclined to maintain. Wilderotter said the AT&T transaction comes with a number of differences to its Verizon transaction. In the case of AT&T, Frontier is purchasing assets in one state, only 20% of its business, a state in which Frontier has operated for 70 years. The Verizon deal covered 14 states and tripled Frontier’s size. Another difference is Frontier has a partnership with AT&T and knows these Connecticut customers. “We’ve done everything we can to mitigate risk,” said Wilderotter. “We’re a seasoned team. This deal is easy to do compared to others. And these are also good assets. Not fixer uppers.”