The National Association of State Utility Consumer Advocates says the risks of the $8.6 billion deal outweigh potential benefits.

"The merger proposed by Frontier and Verizon is not in the public interest," said David Springe, president of the consumer advocate group and a lawyer the public utility consumer division in Kansas.

"The failure of the companies to offer adequate consumer benefits or protections puts customers at risk of being served by a company without enough financial strength to make necessary improvements to local telephone facilities and widen the deployment of broadband access."

If the deal closes, Frontier would have more residential and small business landline customers in West Virginia -- 760,000 -- than in any other state. The purchase does not include Verizon's wireless service.

The state Public Service Commission also is reviewing Frontier's application to purchase Verizon's 617,000 phone lines in West Virginia. Frontier already has 144,000 access lines across the state. State regulators have called Frontier's plan the most significant telecommunications deal in West Virginia history.

The PSC's Consumer Advocate Division, which is a member of the national consumer group, hasn't taken a position on the Frontier-Verizon deal, but expects to do so later this year.

"The concern is whether or not Frontier is going to have enough resources to solve all of the problems they're taking over," said Byron Harris, who heads the PSC's Consumer Division.

"We know Verizon has neglected its network for several years. It's going to take a fair amount of capital to remedy the situation."

Last year, the Public Service Commission investigated Verizon, after receiving hundreds of complaints about the company's telephone line service. In December, Verizon agreed to an $11 million plan to improve service.

Frontier has said it would follow the service quality plan after purchasing Verizon's phone lines.

If the FCC approves the merger, Springe said the agency should require Frontier to expand computer broadband service to all of Verizon's landline customers within five years. Frontier previously announced plans to expand Internet broadband services to 90 percent of Verizon's customers in West Virginia. 

Springe also wants the FCC to require an independent audit of Frontier's wire line support systems to ensure a "seamless" transition for customers.

The Stamford, Conn.-based Frontier expects to take on $3 billion in new debt after the deal. However, the company said its debt-to-earnings ratio would improve significantly, allowing the company to invest in phone line improvements. The company also plans to fund broadband expansion, in part, but cutting its dividend rate 25 cents a share. 

Also Monday, the utility consumer group suggested that the FCC scrutinize Frontier's finances. If national economic conditions don't improve, Frontier might lose revenue, which would lead to staffing shortages and a decline in service, the consumer organization predicted.

Frontier serves about 2.3 million customers in 24 states. The company would add 4.8 million Verizon telephone lines in 14 states.

The national utility group includes public watchdog offices from 40 states, including West Virginia.

Verizon has about 2,100 employees in the state, with about 1,000 of those in Charleston. Frontier has 260 employees in West Virginia.

The Public Service Commission has scheduled a series of public hearings, starting Jan. 12.

West Virginia Attorney General Darrell McGraw, some state legislators and the Communication Workers of America union have raised objections to the proposed Frontier-Verizon deal. They say the purchase could lead to substandard service, job losses and higher prices for consumers.

Frontier says the deal would bring better phone service, lower prices, expanded broadband Internet access and possibly more jobs.

Reach Eric Eyre at erice...@wvgazette.com or 304-348-4869.