Windstream's plan to buy D&E Communications won state approval Friday, after the two firms agreed to a rate cap and other measures.
The Public Utility Commission approved the proposed combination by a 4-0 vote.
The rate cap and other steps pleased the state Office of Consumer Advocate, Office of Small Business Advocate and Office of Trial Staff, all of which initially had opposed the deal.
The Office of Consumer Advocate, for instance, had argued there was "no evidence" of "substantial, affirmative public benefits."
To persuade the three offices to reverse their stances and support the transaction, Windstream and D&E agreed to several concessions.
Most notably, the two firms pledged to freeze rates for local regulated phone service for D&E customers for two years.
They also agreed not to fight the arrival of new qualified competitors in D&E territory who provide local phone service.
In addition, the two firms agreed to promote "lifeline" phone service for two years by mailing information about the service to eligible households.
"Lifeline" service is sharply discounted service that's provided to customers with annual household incomes of less than $50,000.
The companies also pledged to contribute $25,000 annually to charitable and community causes throughout D&E territory.
Besides providing those benefits, the combined company will operate more effectively and efficiently, the PUC said.
The combined company also will be able to offer expanded services because it will have more resources, the PUC said.
Friday's PUC vote is the last regulatory approval required for the deal, unveiled in May, to become a reality.
With the approval in hand, Windstream is expected to complete its $330 million purchase of D&E by the end of next week.
As was previously announced, Windstream will begin slashing the D&E payroll 60 days after the deal is finalized.
Windstream will lay off 280 to 290 employees, or nearly 60 percent of D&E's 500 employees across central and eastern Pennsylvania.
Most of those cuts will occur in Lancaster County, where Ephrata-based D&E has its biggest concentration of workers.
Here, 250 to 270 of D&E's 340 workers, or as many as 79 percent, will be let go by Arkansas-based Windstream.