California has pushed back against the Federal Communications Commission's (FCC) efforts to dismantle diversity, equity, and inclusion initiatives with a condition attached to the approval of Verizon's $9.6 billion acquisition of Frontier Communications.
As part of the merger agreement, California regulators have insisted that Verizon agree to maintain its low-income internet plans, which include offering home internet for as little as $20 per month. The plan is expected to remain in place for at least a decade.
The deal also includes provisions aimed at improving diversity and inclusion in the telecommunications industry, including requirements for quarterly employee satisfaction surveys, annual transparency reports, and commitments to increase workforce diversity and hiring from underrepresented groups.
Verizon has agreed to pay $40 million to California's Emerging Technology Fund for digital literacy programs and $10 million to California universities for a workforce development program. The company will also establish a recruiting pipeline from California State Universities and community colleges to recruit workers from underrepresented populations.
California regulators have criticized the FCC's approach, arguing that it is attempting to "remake society" by withholding regulatory approvals and coercing companies into abandoning diversity initiatives. The state has taken a more consumer-focused approach, insisting on measures aimed at protecting low-income consumers and promoting diversity in the industry.
As part of the agreement, Verizon will deploy fiber to 75,000 new locations within five years, prioritizing areas with low income levels. The company is also required to deploy 250 new cell sites with 5G and fixed wireless capability in areas eligible for state broadband grants and areas with high fire threats.
The condition attached to the merger approval has been hailed by advocacy groups as a major victory for consumer rights and diversity initiatives. California regulators have shown that they are willing to push back against federal pressure and prioritize consumer protection, setting an example for other states and companies.
As part of the merger agreement, California regulators have insisted that Verizon agree to maintain its low-income internet plans, which include offering home internet for as little as $20 per month. The plan is expected to remain in place for at least a decade.
The deal also includes provisions aimed at improving diversity and inclusion in the telecommunications industry, including requirements for quarterly employee satisfaction surveys, annual transparency reports, and commitments to increase workforce diversity and hiring from underrepresented groups.
Verizon has agreed to pay $40 million to California's Emerging Technology Fund for digital literacy programs and $10 million to California universities for a workforce development program. The company will also establish a recruiting pipeline from California State Universities and community colleges to recruit workers from underrepresented populations.
California regulators have criticized the FCC's approach, arguing that it is attempting to "remake society" by withholding regulatory approvals and coercing companies into abandoning diversity initiatives. The state has taken a more consumer-focused approach, insisting on measures aimed at protecting low-income consumers and promoting diversity in the industry.
As part of the agreement, Verizon will deploy fiber to 75,000 new locations within five years, prioritizing areas with low income levels. The company is also required to deploy 250 new cell sites with 5G and fixed wireless capability in areas eligible for state broadband grants and areas with high fire threats.
The condition attached to the merger approval has been hailed by advocacy groups as a major victory for consumer rights and diversity initiatives. California regulators have shown that they are willing to push back against federal pressure and prioritize consumer protection, setting an example for other states and companies.