Verizon sells off rural wired business in 14 states to focus on wireless and broadband

Today Verizon announced that it is going to sell off its rural wired phone service businesses in 14 different states in an effort to help the company focus on wireless and broadband services. The wireline operations are to be purchased by Frontier Communications for US$8.6 billion, part of which is planned to be distributed to shareholders.

The wireline businesses that Frontier will take over include all of Verizon's local wireline operating territories in Arizona, Idaho, Illinois, Indiana, Michigan, Nevada, North Carolina, Ohio, Oregon, South Carolina, Washington, West Virginia, and Wisconsin. The deal also includes some parts of Verizon's wireline business in California, including those bordering Arizona, Nevada, and Oregon. This includes 4.8 million local phone lines, 2.2 million long distance customers, 1.0 million DSL customers, and a relatively small number of FiOS Internet and FiOS TV customers. Roughly 11,000 Verizon employees are also expected to be transitioned over to Frontier as part of the agreement.

Verizon and Frontier hope to close the deal within 12 months, pending shareholder and regulatory approval.