Verizon to sell part of its wireline operations

Verizon to sell part of its wireline operations

Verizon Communications would sell part of its wireline operations and lease over 11,000 of its towers to American Tower in a deal that is going to help it pay off recent wireless spectrum purchases.

The company made an announcement that it has entered into an agreement to sell its wireline operations to Frontier Communications Corp. Verizon will receive about $10.54 billion for the business and related assets in those states.

Those properties involve 3.7 million voice connections, 1.6 million FiOS Internet customers, 2.2 million high-speed data customers and about 1.2 million FiOS video connections.

According to Frontier spokesman Steve Crosby, customers will not see any difference in service. It is expected that the transaction will close in the first half of 2016. Verizon, the largest US wireless operator by subscribers, has also entered into an agreement to lease the rights of about 11,324 company-owned wireless towers to American Tower Corp.

American Tower is going to acquire about 165 Verizon towers for an upfront payment of about $5 billion. American Tower can run the leased towers for an average term of 28 years and it also have a choice to acquire.

"These transactions will further strengthen Verizon's focus on extending our industry leadership position in our core markets and return significant value to our shareholders", Verizon Chairman and CEO Lowell McAdam said in a statement.

According to Crosby, Southland customers will derive the benefit as Frontier will add new products and services for them. At present, Frontier has access lines in 28 states that predominately serve rural areas and small and medium-sized communities. Crosby said they acquired properties from Verizon in 14 states in 2009 and 2010.

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