PUCO suspends Frontier-Verizon merger application

COLUMBUS, OHIO (June 17, 2009) – The Public Utilities Commission of Ohio (PUCO) today suspended the application filed by Frontier Communication Corporation, New Communications Holdings, Inc. (NCH) and Verizon Communications, Inc. that seeks PUCO approval of a change in ownership.

The Commission found that upon review of the pending application and motions filed by the Office of the Ohio Consumers’ Counsel and Cincinnati Bell Extended Territories, it would be appropriate to suspend the application to ensure that the application is not deemed approved by operation of law. The Ohio Revised Code states that if the Commission fails to issue an order within 30 days of the filing of the application to change ownership, the application shall be deemed approved by operation of law.

On May 29, 2009, the companies filed the joint application seeking approval of a change in ownership in which Frontier would acquire control of Verizon North, Inc. and other Verizon subsidiaries. The application states that on May 13, 2009, Frontier, Verizon and NCH entered into a merger agreement in which Frontier intends to acquire approximately 4.8 million access lines currently owned by Verizon subsidiaries. As a result of the merger, Verizon will become an indirect, wholly owned subsidiary of Frontier.

Frontier is a Delaware corporation that serves customers in 24 states and offers telephone, television and Internet services, among others. Verizon is also a Delaware corporation that, through its subsidiaries, provides regulated and unregulated telecommunication services in 26 states, including Ohio.

A copy of today’s Commission order is available at www.PUCO.ohio.gov. Click on the link to DIS and enter the case number 09-454-TP-ACO.

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09-454-TP-ACO