Verizon, Frontier ask FCC to back license transfers

WASHINGTON, May 29 (Reuters) - Verizon Communications Inc (VZ.N) and Frontier Communications Corp (FTR.N) on Friday asked U.S. regulators to approve the transfers of phone line licenses as part of the companies' $5.25 billion deal.

Under a deal announced earlier this month, Verizon would sell 4.8 million rural phone lines to Frontier, which would become the largest rural-only service provider in the United States.

The deal came amid a wave of consolidation in the rural phone market, as providers seek to cut costs and more consumers cancel landlines.

"The proposed transaction will not cause competitive harm and will bring significant public interest benefits, including the increased deployment of broadband to rural areas, which both the President and Congress have identified as a national priority," the joint filing with Federal Communications Commission said.

Bringing broadband to rural parts of the United States has been a key part of President Barack Obama's efforts to bring equitable Internet access to underserved communities.

In the Obama administration's nearly $800 billion stimulus package, about $7.2 billion has been set aside for expanding broadband access to about half of the U.S. population -- many in low-income and rural areas currently without it.

As part of the deal, Frontier will acquire Verizon's local wirelines operating in Arizona, Idaho, Illinois, Indiana, Michigan, Nevada, North Carolina, Ohio, Oregon, South Carolina, Washington, West Virginia and Wisconsin.

The transaction also includes a small number of Verizon's exchanges in California.

The deal would involve about 4.8 million local access lines, 2.2 million long-distance customers and 1 million high-speed data customers, according to Verizon.