The Iowa Utilities Board (IUB) issued a written order that will allow Windstream Corp.’s acquisition of Iowa Telecommunications Services Inc. to proceed in Iowa.

Windstream, a publicly traded Standard & Poor’s 500 company, has subsidiaries with local exchange carrier operation in 16 states and long-distance operations in 49 states, including Iowa.

The IUB found that the merger would provide an opportunity for stability in rates and jobs, and expansion of future services in the state.

Both Windstream and Iowa Telecom contend that the takeover wouldn’t cause rates to increase or the quality of service to decline. The IUB found that Iowa Telecom’s overall financial position would improve because of the merger. The IUB noted that because Iowa Telecom would be part of a larger company, it would be more able to attract capital, improve its debt leverage and improve cash flow.

Iowa Telecom said that after the merger, the customer call center in Newton would be expanded. As part of the agreement, no Iowa Telecom asset is to be removed from Iowa or transferred to a non-regulated environment.

Windstream also said that the combined company would be able to deploy high-speed Internet service in most rural areas because of economies of scale.

The merger should also provide better resources for building and maintaining Iowa Telecom’s existing wire line operations.