FCC Chair Approves ISP Mergers with DEI Program Conditions

The Federal Communications Commission (FCC), led by Chairman Brendan Carr, has signaled a new approach to telecom merger approvals: ISPs may consolidate only if they agree to terminate their Diversity, Equity, and Inclusion (DEI) programs. This policy has already influenced the approval of Verizon’s acquisition of Frontier and T-Mobile’s joint venture for Lumos, and now looms over the proposed $34.5 billion Charter-Cox deal.

Merger Mania and DEI Ultimatums

Under Section 310(d) of the Communications Act and the FCC’s merger review process, license transfers and consolidations undergo public comment, technical evaluation, and a public interest test. Chairman Carr has introduced new conditions targeting corporate DEI policies he deems “invidious forms of discrimination.” In April 2025, Carr sent letters to major carriers, warning that any merger application from a company maintaining robust DEI initiatives would face delays or outright rejection.

Verizon-Frontier Deal and DEI Rollback

In September 2024, Verizon announced a $20 billion purchase of Frontier Communications, including ~3 million fiber and DSL subscribers across 25 states. The deal, now approved, hinges on Verizon’s commitment—filed April 2025—to dismantle its internal DEI office, reassign staff and retool HR platforms, and remove supplier diversity criteria from its enterprise resource planning (ERP) and supplier relationship management (SRM) systems.

Verizon’s legal filing cites recent Supreme Court decisions and executive orders reshaping federal DEI mandates. It states Verizon will:

• Eliminate DEI-specific leadership roles and advisory councils.
• Reassign DEI personnel to general talent acquisition and retention teams.
• Reconfigure training modules—such as interactive e-learning systems—to emphasize universal equal opportunity principles.
• Remove DEI scoring from procurement algorithms in SAP Ariba and Oracle Fusion.

“Verizon’s modifications strengthen its commitment to nondiscrimination under Title VII and foster a merit-based culture,” Carr stated on X.

T-Mobile’s Lumos Joint Venture

In March 2025, T-Mobile received FCC approval for its joint venture to acquire fiber provider Lumos Networks. In a March 27 letter, T-Mobile pledged a comprehensive review of its DEI frameworks, including internal bias-detection AI tools and external credentialing programs built on Workday and Cornerstone OnDemand platforms.

Charter and Cox Merger Under the Microscope

Charter’s proposed $34.5 billion acquisition of Cox Communications would create the nation’s largest cable broadband operator, eclipsing Comcast’s footprint. The merger promises DOCSIS 4.0 network integration, gigabit-plus speeds via fiber-to-the-node (FTTN) and fiber-to-the-home (FTTH) upgrades, and spectrum sharing in the 3.5 GHz CBRS band. Yet, Carr’s DEI stance puts Charter’s supplier diversity and community engagement programs at risk.

Network Integration and Spectrum Assets

Engineers estimate the combined Charter-Cox network will access over 1 million miles of fiber and 40 GHz of licensed spectrum, optimizing traffic through segment routing (SR) and virtualized edge computing nodes. Regulatory filings reveal an aspiration to deploy 5G small cells in dense markets and to leverage DOCSIS low-latency services for enterprise-grade VPNs.

Data Privacy and Security Considerations

Large consolidations raise questions about Customer Proprietary Network Information (CPNI) compliance, the integrity of subscriber data in unified customer relationship management (CRM) databases, and potential cybersecurity risks. Experts warn that rapid integration could introduce misconfigurations in firewalls and identity-and-access management (IAM) systems, requiring rigorous audits with tools like Splunk and Palo Alto Prisma Access.

Impact on Workforce and Talent Acquisition

Ending DEI teams affects recruitment analytics, which rely on AI-driven candidate shortlisting and diversity benchmarking in platforms like LinkedIn Recruiter and Greenhouse. HR technology advisors caution that removing anonymized demographic tracking might reduce talent pipeline visibility for underrepresented groups, with long-term implications for innovation and retention.

Supply Chain and Vendor Management Implications

Supplier diversity programs incentivize contracts with minority-owned, women-owned, and veteran-owned enterprises via bid-scoring systems. Stripping these criteria from procurement workflows could reshape the Tier 1 and Tier 2 supplier landscape, potentially concentrating spending with a narrower set of vendors and affecting the resilience of the supply chain amid global semiconductor and optical component shortages.

Potential Legal and Regulatory Challenges Ahead

Carr’s DEI condition may face legal scrutiny under antidiscrimination laws and First Amendment arguments. Industry groups have already filed Freedom of Information Act (FOIA) requests for Carr’s internal communications, and civil rights advocates plan lawsuits under Title VI and Title VII. Meanwhile, the Department of Justice’s Antitrust Division could open parallel investigations into market concentration and its effect on consumer pricing, net neutrality, and broadband investment.

“Mandating the removal of DEI initiatives risks chilling corporate free speech and may invite protracted litigation,” says telecom attorney Dr. Angela Johnson of TechLaw Partners.

As the FCC docket for Charter-Cox (MB Docket No. 24-234) remains open, stakeholders and the public can submit comments through the FCC’s Electronic Comment Filing System (ECFS) until the summer closing dates. The outcome will set a pivotal precedent for how policy and politics intersect in the age of digital infrastructure consolidation.