24 Mar Verizon Announces Sale of its Wireline Assets
Given the advances being made today in wireless technologies, it is no wonder that people are now getting rid of their landline phones for Smartphones and other VoIP based telecom systems. A prime example of this is the recent announcement by Verizon that it is going to sell its wireline assets to Frontier Communications. This deal will transpire in three different states, and is worth a total of $10.5 billion.
Through this deal, Verizon gains two huge benefits. First, it can focus more on its lucrative East Coast market, and second, it can start to reduce its debt following the acquisition of AWS-3 spectrum. The three states where Frontier Communications will acquire the wireline assets from Verizon are Florida, California, and Texas.
This deal will also prove to be beneficial for Frontier Communications on a number of fronts, which include:
- Gaining 2.2 million broadband customers, with almost four million voice connections.
- An addition of almost three million FiOS based Internet and video customers.
- A huge enhancement to Frontier’s Fiber to The Home (FTTH) service base (currently, it offers this in seven states).
This is not the first time that Frontier Communications has engaged in major asset acquisitions. In 2010, the company also purchased the rural telecom assets from Verizon and, in 2014, it acquired the wireline assets of AT&T based in Connecticut.
But keeping the customer’s needs in mind will be at the forefront as this most recent deal transpires. For instance, both Frontier Communications and Verizon will work to ensure that all billing information and customer accounts are transitioned as efficiently and seamlessly as possible. It is expected that this acquisition will be completed by the first half of 2016. Also, 11,000 employees from Verizon will be shifted to Frontier Communications.
According to the CEO of Frontier Communications, Maggie Wilderotter, “Frontier has a solid track record of successful integrations, and we welcome the new employees who will help us implement our local engagement model in these markets.” (SOURCE: http://www.fiercetelecom.com/story/frontier-acquires-verizon-wireline-assets-three-states-105b/2015-02-05)
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