FORT WAYNE – After taking on $3.3 billion in debt, doubts from industry experts and opposition from detractors, the boss of Frontier Communications Corp. says the journey was worth it.
“It’s a big day for us,” said Maggie Wilderotter, chairwoman and chief executive officer of the company that will triple in size. “The employees are thrilled and excited that they are part of a company that cares what happens to the local market.”
Frontier, based in Stamford, Conn., closed a $5.3 billion deal with Verizon Communications Inc. on Thursday. Shares of Frontier rose 58 cents to $7.69 at the end of trading Thursday.
Frontier executives and managers conducted introductory meetings throughout the 14 states where the company will inherit all of Verizon’s landline phone, Internet and cable customers.
More than 1,000 workers gathered to rally at the Embassy Theatre on Thursday.
“If they do what they say they’re going to do, this is going to be great,” said Sonny Kelley, 50, a cable technician from Elkhart who worked at Verizon 14 years.
“Improving customer service, the chain of command and stuff like that. Things used to have to go through too many channels for anything to get done,” Kelley said. “It looks like they’re going to put control back into the local hands. Folks in New York may know New York, but they don’t know Indiana.”
Wilderotter said salaries and customer fees will remain unchanged. In fact, Internet users can keep their passwords and usernames – with one exception, of course. The domain moniker will change to Frontier from Verizon.
For six months, Wilderotter said her company will redirect Verizon e-mails to give customers time to adjust to the change. Frontier is considered a company that focuses on small towns and rural areas. It will provide service to 4 million residences and businesses across the country.
In May, federal regulators approved the cash-and-stock transaction that was announced more than a year ago.
Frontier has pledged to make significant investments in high-speed Internet networks, particularly in rural America.
For competitive reasons, the business wouldn’t disclose its customer count in Fort Wayne but did say it has 1 million subscriber lines in northeast Indiana.
The company also has about 1,200 workers in the region and nearly 10,000 nationwide. Company leaders will continue meeting with employees today.
“We just want them to know what is expected of them and what our goals are,” Wilderotter said.
When the Frontier deal was announced last year, critics blasted it, saying customer prices would increase while service would decline. Wilderotter said that isn’t true. In fact, “we plan on rolling out new products in the Fort Wayne area in 2011” such as wireless Internet.
As far as the debt that Frontier took on in the Verizon deal, Wilderotter said it will be offset “because we’re a much bigger company now and will have more revenue coming in.”
“We actually have a better balance sheet,” she said. The company listed $6 billion in revenue in 2009.
