The Federal Communications Commission (FCC) has approved Verizon’s proposed $20 billion acquisition of Frontier Communications.

The deal has been approved by the regulator after Verizon agreed to end its diversity, equity, and inclusion programs (DEI).

FCC Chair Brendan Carr previously stated that he was prepared to block mergers and acquisition proposals from companies that promote “invidious” DEI policies.

“By approving this deal, the FCC ensures that Americans will benefit from a series of good and common-sense wins,” said Carr.

“The transaction will unleash billions of dollars in new infrastructure builds in communities across the country - including rural America. This investment will accelerate the transition away from old, copper line networks to modern, high-speed ones. And it delivers for America’s tower and telecom crews who do the hard, often gritty work needed to build high-speed networks.”

Verizon first announced an agreement to acquire Frontier in September. Under the agreement, Verizon is set to buy Frontier for $38.50 per share in cash.

Verizon stated the deal would also expand its intelligent Edge network to include digital innovations like AI and IoT.

The carrier wrote to Carr to confirm it has ditched its DEI policies following an evaluation of the practices.

“In doing so, Verizon recognizes that some DEI policies and practices could be associated with discrimination,” said Vandana Venkatesh, Verizon EVP and chief legal officer.

“For that reason, Verizon reaffirms its commitment to equal employment opportunity and nondiscrimination and is modifying its practices and ending its DEI-related policies.”

Frontier provides broadband connection to more than eight million locations across 25 states and has 2.5 million fiber customers. Frontier wants to reach 10 million locations by the end of the year.

The fiber provider only filed for bankruptcy in 2020 with debts of more than $16bn, as the company sought to turn around its fortunes and cut around $10bn of that debt. A year later, the company exited bankruptcy.

Combined, Verizon and Frontier have approximately 10 million fiber customers across 31 states and Washington D.C. and fiber networks passing more than 25 million premises.

Frontier had previously acquired Verizon’s rural fixed-line assets for $6.8bn in 2010, covering 14 states, before snapping up operations in California, Florida, and Texas for $10.5bn in 2015.

Despite some public pushback from some of Frontier's shareholders, 63 percent of stockholders voted in favor of the deal, including ten of the company's top 12 stockholders.

Verizon expects the deal to close early next year.