8. Competition

Joint Applicants state that after the merger transaction is consummated, Frontier-California would continue to serve the same service areas previously served by the four separate Citizens ILECs, and the proposed transaction would not generate any adverse impact on competition. Rather, the merger would support the Commission's goal of expanding competition by opening 17 additional exchange areas to include local wireline carriers. Following the merger, the former service territories of Frontier-Tuolumne, Frontier-Golden State and Frontier-Global Valley would be open for local wireline competition such that Competitive Local Exchange Carriers (CLECs) could offer service in these areas. Because these three ILECs have operated as small, rural, rate-of-return carriers, the Commission has not previously authorized competition in their service territories. Following the merger, the service territories of Frontier-Tuolumne, Frontier-Golden State and Frontier-Global Valley would be folded into the Frontier-California service territory, which is already open to competition.