The Frontier Communications is threatening to follow an exodus of businesses and workers to the US south by shifting its headquarters from Norwalk, Connecticut, to either Texas or Florida.
According to a document sent to council members last week by Assistant City Manager Majed Al-Ghafry, the telecoms corporation is looking for tax incentives from Texas to convert its current Dallas office into a corporate hub. The document, which was previously reported by the Dallas Morning News, states that Tampa, Florida is also being evaluated as a potential alternative location.
As businesses relocate to or expand in Texas and Florida, which have no income taxes and business-friendly legislation, the two states are seeing an infusion of wealth. Some notable businesses that have recently moved to Texas include Tesla Inc., Hewlett Packard Enterprise Co., and Caterpillar Inc. Ken Griffin, the founder of Citadel Securities, shifted his company to Miami last year.
The Dallas City Council is expected to vote on whether to designate Frontier as an Enterprise Zone project next week. The label would enable the business to get back the state's share of the sales and use taxes it paid as part of its capital expenditure.
If Frontier decides to make Dallas its headquarters, it has committed to expanding and renovating its current Dallas office as well as hiring or relocating additional workers within a five-year time frame.
After coming out of bankruptcy in 2021, Frontier is now concentrating on constructing fiber optic networks to service clients across 25 states. Nick Jeffery, the chief executive officer, is one of the company's senior executives who already resides in Dallas.
Requests for comment from a Frontier spokeswoman went unanswered. The Frontier Communications Company has not indicated any intention or intentions to relocate its office from Norwalk, according to Adam Joseph, a spokesman for Connecticut Governor Ned Lamont.
The business employs more than 14,000 people in the US, including 220 in Norwalk and more than 600 in Dallas, a major hub for telecom-related businesses in the US.
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