Frontier Communications’ ‘Virtual Separation’ Alarms Groups

A labor union and consumer advocacy group have raised concerns about Frontier Communications‘ proposed “virtual separation” plan that could split the company between areas.

The Communications Workers of America (CWA) and The Utility Reform Network (TURN) filed comments with the Federal Communications Commission (FCC) regarding Frontier’s bankruptcy. It raises concerns about whether the company’s proposed reorganization plan is in the public interest.

It also questions whether the reorganized Frontier will invest in improved customer service. That includes service quality commitments, and broadband deployment under state and federal programs.

Frontier couldn’t be reached for comment.

In April, Frontier filed chapter 11 bankruptcy as part of its restructuring support agreement to cut its debt by more than $10 billion. Frontier filed in the U.S. Bankruptcy Court for the Southern District of New York. The court considered a fourth amended restructuring plan on Friday.

Potential Implications