Verizon to Sell Part of its Wireline Business to Frontier Communications Corp.
Telecom giant, Verizon Communications said that it will sell part of its wireline businesses in California, Texas and Florida, to Frontier Communications Corp. in a deal of $9.9 billion in cash. The lines being sold serves customers through TV, telephone and Internet. Frontier will also take $600 million debt of the company.
Verizon, the biggest U. S. cellphone carrier said that it wants to focus on wireline business in the East Coast and will concentrate on growing its high-speed Internet and FiOS broadband business in the region.
In a statement, Lowell McAdam ,Verizon's Chairman and CEO said, "Our long-standing strategy has been to consistently invest in our networks, improve our customers' experience, and develop new products and services while delivering profitable growth."
It is not the first time that Verizon and Frontier are entering a deal. In 2010, Frontier acquired four million phone lines from Verizon spread across fourteen states in a deal of $5.3 billion.
According to Frontier the recent deal is planned to be completed in the initial half of 2016.
The transfer of assets, along with the changeover for customers as well as employees in the deal seems to be flawless. Approximately 11,000 employees of Verizon would carry on working with Frontier when the deal is sealed.
New Zealand News
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