NEW YORK — Verizon announced that it will sell its local wireline operations — including its FiOS fiber networks — in California, Florida and Texas to Frontier Communications Corporation. Frontier will pay Verizon approximately $10.54 billion (approximately $9.9 billion in cash, plus $600 million in assumed debt) for the business and related assets in these states. The sale will concentrate Verizon’s wireline operations on the East Coast where it will focus on further penetrating the market for its FiOS business across a contiguous footprint in Eastern states. The companies are targeting completing the transaction in the first half of 2016.
Frontier Expanding its Fiber Footprint with FiOS Acquisition
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. “These properties align with Frontier’s disciplined strategic focus and enhance our footprint with rich fiber-based assets,” said Maggie Wilderotter, Frontier’s chairman and CEO. “We look forward to building on the strong results Verizon has delivered in these three states. 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.”
Frontier will acquire all of Verizon’s local wireline operating territories in California, Florida and Texas. At the end of fourth-quarter 2014, these operations served approximately 3.7 million voice connections; approximately 2.2 million high-speed data customers, including approximately 1.6 million FiOS Internet customers; and approximately 1.2 million FiOS Video customers.
The transaction includes Verizon’s FiOS Internet and video customers, switched and special access lines, as well as its high-speed Internet service and long-distance voice accounts in these three states. Frontier will continue to provide video services in these states after the completion of the transaction.