Vermont regulators have approved the sale of Consolidated Communications, the state’s largest telecommunications company, to Searchlight Capital Partners, a private investment firm. The $3.1 billion deal still requires federal approval, expected by late 2024 or early 2025.
The Vermont Public Utility Commission PUC approved the sale, noting it would help Consolidated secure additional funding for expanding broadband fiber across the state. The company has already connected over 105,000 homes and businesses to its high-speed fiber network and plans to add up to 70,000 more customers in the next two years.
Ellie de Villiers of the Vermont Communications Union Districts Association supported the deal, stating that the private equity investment would bring more capital into the state, boosting broadband development. The deal is also expected to provide Consolidated with $380 million in new capital, helping the company expand its services in Vermont.
The transaction is not expected to affect customer services, rates, or carriers. However, Consolidated has faced challenges in meeting customer service standards since 2019. As part of the approval, the company will need to submit semi-annual reports on staffing levels in Vermont and plans for maintaining the state’s copper network, which provides landline service, especially important during power outages.
The PUC emphasized that while expanding fiber is important, the copper network must not be neglected. Consolidated, which operates in 22 states, including New Hampshire, Massachusetts, and Maine, acquired the former Verizon network in Vermont in 2017.