AT&T-Frontier Deal Hits Unexpected Roadblock

**Editor’s Note: Please click here for a recap of the biggest communications mergers in Q2 2014.**

After getting approved by federal communications regulators, Frontier Communications’ efforts to buy AT&T’s wireline business in the Constitution State have hit a snag.

Utilities regulators in Connecticut put up a roadblock to the acquisition, saying that it wasn’t adequate for residents there, the Hartford Courtant reported. Specifically, the companies agreed to put a price cap on residential telephone services – but with the predominance of new wireless technology, landline prices aren’t expected to rise, giving regulators reason to believe that provision of the deal as insignificant to customers. Proposed investment in broadband lacks specifics, the regulators said.

This is not to say the sale won’t ultimately be approved. The Public Utilities Regulatory Authority said the agreement between the two communications companies merited “further discussion.” It only called for a yea or nay vote, which was too black and white for the panel.

The transaction, worth $2 billion, transfers AT&T’s 415,000 connections, 900,000 wireline connections and 180,000 video subscribers to Frontier.

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