Frontier has an uphill battle selling this deal to regulations and its own shareholders. The ghost of the Verizon/FairPoint deal in Northern New England is going to loom strongly for anyone who followed the train wreck when FairPoint switched over its back office systems from Verizon’s rentals to its own gear. Also the not-so-little matter [...]
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Verizon is selling off its wireline operations in predominantly rural areas across 14 states to Frontier. Ba-be, we can hear you now… The transaction is expected to return around $8.6 billion to Verizon and its shareholders as Verizon continues to “transform its growth profile” (i.e. shed parts of its business that aren’t making money so fast) [...] Frontier Communication is buying 4.8 million access lines and the related business assets from Verizon in an all-stock deal worth $8.6 billion. My head hurts parsing through the implications. Pending regulatory approval, Frontier will become the largest “pure rural” communications service provider and (more importantly) the nation’s fifth largest ILEC with more than 7 million access lines, [...] Atlanta-based Birch Communications (and what is it with Atlanta and phone companies, anyway?) has signed an agreement to grab nearly all the customers and network assets for Cleartel Communications. Birch is getting around 100,000 business and residential access lines, plus a “state of the art” facilities network in Florida. This is the seventh acquisition over the [...] |
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