Verizon selling landline operations in 14 states
Verizon Communications is casting off its plain, old telephone service in 14 states.
In its ongoing effort to focus on wireless and broadband, Verizon announced on Wednesday plans to sell 4.5 million landlines and related assets to Frontier Communications. The operations are based across 14 states, mostly tied to residential and small-business customers in rural areas.
"This transaction is part of our multiyear effort to transform our growth profile and asset base to focus on wireless, FiOS fiber-optic services and other broadband development, and global IP," said Ivan Seidenberg, chief executive officer of Verizon. "All of Verizon's remaining local landline operations have high concentrations of FiOS in more densely populated markets."
Verizon shareholders will be big beneficiaries. As part of the deal, Frontier will merge with a new company that will be spun off as common stock to Verizon investors. The transaction is expected to net Verizon and its stockholders a total value of $8.6 billion, according to Verizon.
The deal also stands to increase the size and foothold of Stamford Conn.-based Frontier. "With more than 7 million access lines in 27 states, we will be the largest pure rural communications provider of voice, broadband and video services in the U.S.," Frontier CEO Maggie Wilderotter said.
The transaction includes all of Verizon's landline assets in Arizona, Idaho, Illinois, Indiana, Michigan, Nevada, North Carolina, Ohio, Oregon, South Carolina, Washington, West Virginia, and Wisconsin, as well as some assets in California. Verizon expects the deal to be completed within 12 months.
The move is the latest in Verizon's efforts to shake up and refocus its operations. Earlier this week, Verizon said it will sell the wireless assets it picked up from Alltel, a requirement of its recent merger with Alltel. AT&T will pay Verizon $2.35 billion for the wireless licenses, subscribers, and other assets. In return, AT&T will sell Verizon its former Centennial wireless operations.
Lance Whitney wears a few different technology hats--journalist, Web developer, and software trainer. He's a contributing editor for Microsoft TechNet Magazine and writes for other computer publications and Web sites. You can follow Lance on Twitter at @lancewhit. Lance is a member of the CNET Blog Network, and he is not an employee of CNET. 
(with exception of the current Ft. Wayne, Indiana operation).
You may all start the comparisons to the New England Verizon/Fairpoint bungles.
If so...verizon is just growing tremendously everyday...this is insane. im not a fan of verizon at all...but i am very impressed with how much they are raking in.
I have know for a long time that verizon has not cared about their Illinois regions.
"I have known for a long time that verizon has not cared about their Illinois regions."
Boy, you can say that again.
Verizon has had their old GTE Midwest / GTE North territory on the block for last few years. Therefore, it was ignored/just kept going without much capital expenditure.
As a resident in Verizon's Central Illinois territory, I am concerned that this sale to Frontier will put now put us years behind in the adoption of Fiber to the Home/Neighborhood (Verizon FiOS or AT&T U-Verse).
Most residents are suburban in the Peoria / Bloomington-Normal areas. Most live within minutes of 2 large Fortune 100 headquarters (Caterpillar and State Farm).
When I lived in Fort Wayne in the 1980s, my home wiring said "Home Telephone" on it. They merged Home Telephone and Citizens Independent Telephone (which were already GTE subsidiaries) in 1956. It looked like it was the original wiring in the house though - which was built in 1923.
I don't have telephone service from Verizon; I buy naked DSL from them. The only thing good I can say about them is that at least they aren't Comcast. I'd sure like to switch providers, but given the cost and latency of satellite internet, I feel trapped. If I was 20 years younger, I'd get an OC3 and start selling wireless internet to all my neighbors. I'm sure I'd find a ready, and profitable, market.
If you were 20 years younger, you'd probably be focusing on buying a 1GE line.
- by PhaseDMA May 13, 2009 9:47 AM PDT
- From Rochester Telephone to Frontier. Maybe Rochester will actually someday get the FiOS that should have been rolled out there first.
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(11 Comments)We have only had the infrastructure for nearly 3 decades.