Verizon has secured federal approval for its $20 billion acquisition of Frontier Communications, following a decision to dismantle its internal Diversity, Equity, and Inclusion (DEI) programs—a move that drew direct praise from Federal Communications Commission (FCC) Commissioner Brendan Carr.
In a statement announcing the deal’s approval, Carr emphasized Verizon’s commitment to “end DEI-related practices” as a key component in clearing the regulatory hurdle.
“Verizon’s action marks a strong step towards delivering on the promise of equal opportunity and nondiscrimination,” Carr said.
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Verizon CEO Hans Vestberg said at the time of the announcement that the acquisition of Frontier was a “strategic fit” that would help the company be more competitive throughout the U.S.
The FCC’s signoff clears the path for Verizon to take over Frontier’s fiber network assets, a move the company says will allow it to “upgrade and expand” existing fiber infrastructure. Verizon expects to extend fiber internet to one million homes annually after the acquisition.
According to internal documents obtained by The Intercept, Verizon made several changes in response to Carr’s concerns. In a May 15 letter to the commissioner, Verizon’s Chief Legal Officer, Vandana Venkatesh, confirmed that the company would “no longer have any HR roles or teams focused on DEI” and would remove the term entirely from its internal training materials.
“Verizon recognizes that some DEI policies and practices could be associated with discrimination,” Venkatesh wrote, explaining the company’s decision to reverse course. “Verizon’s public messaging is going to remove references to ‘DEI’ or ‘diversity, equity and inclusion.’”
The move includes the elimination of diversity targets in hiring and supplier contracting, as well as internal benchmarks regarding the representation of women and minorities within the company’s workforce.
Carr, a Republican commissioner appointed under the Trump administration, had previously criticized Verizon’s “lack of progress” in removing DEI-related policies and signaled that such programs could become obstacles to regulatory approval. Earlier this year, he warned that the agency may withhold support for future mergers if companies maintained their DEI initiatives.
The Frontier acquisition grants Verizon control of fiber assets across 25 states and marks a return to markets it had previously exited. Verizon had sold parts of its Fios wireline business, including some fiber infrastructure, to Frontier in 2015. Through the deal, Verizon reclaims those assets and says it will accelerate fiber deployments, particularly in underserved rural areas.
FCC Commissioner Carr endorsed the deal not just on DEI grounds but for its technological benefits. He said the merger will “enable the upgrade of legacy infrastructure to high-speed broadband, particularly in rural America.”
This expansion complements the Biden administration’s Broadband Equity, Access, and Deployment (BEAD) program, aimed at bringing high-speed internet to unconnected areas. However, a recent Washington Post report noted delays in BEAD fund distribution, suggesting that private investment like Verizon’s could play a larger role in closing the digital divide.
The deal’s approval came with clear political undertones, as it adds to a growing list of corporate maneuvers prompted by pressure from Republican lawmakers and regulators to scale back DEI initiatives. T-Mobile, for instance, recently adjusted DEI references on its website before completing its acquisition of fiber provider Lumos.
The rollback also aligns with criticisms voiced by right-leaning figures about perceived bias in corporate America.
The ideological clash over DEI has become a flashpoint in U.S. corporate governance, with Republican officials like Carr positioning themselves in opposition to such programs, while many Democratic leaders continue to support them as necessary for addressing systemic inequality.
Against the backdrop of regulatory decisions increasingly hinge on companies’ cultural policies, Verizon’s DEI reversal is expected to set a precedent for how future mergers and acquisitions are negotiated in the United States, stoking concerns that partisan politics will shape the regulatory environment.