Verizon closes $10.5B sale of assets to Frontier, including FiOS video, broadband subs

By Jim O'Neill on Apr 01 2016 at 11:30 AM
Verizon closes $10.5B sale of assets to Frontier, including FiOS video, broadband subs

Verizon has wrapped up its $10.5 billion deal with Frontier Communications, closing on the sale of Verizon's local wireline assets in California, Florida and Texas.

The deal helps Verizon shed some debt from the AWS-3 FCC spectrum auction early last year.

Included in the deal: Some 2.1 million broadband connections, 1.2 FiOS TV subscribers and about 3.3 million voice connections. Verizon also walks away from its local ILEC businesses.

Verizon is keeping its wireless operations and any enterprise business. Frontier, meanwhile, is taking on 9,400 employees from Verizon in the process.

Verizon in February said it would focus on its wireline operations on the East Coast, working to grow penetration of its FiOS TV and FiOS Internet products, as well.

Frontier currently has access lines in 28 states, providing an array of voice, broadband and video services, including landline assets purchased from Verizon in 2009-2010.

In 2010, when Verizon sold a scattered group of holdings in 14 states to Frontier, including some 110,000 FiOS Internet customers and 69,000 FiOS TV customers, the transition tended toward messy, with FiOS customers worried about higher prices and service issues.

Stay tuned.

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