Frontier Communications is buying AT&T's wireline, residential and business fiber network, including U-Verse video, in Connecticut for $2 billion, the companies said Dec. 17, subject to FCC and Justice Department approval.
“We are excited to be acquiring AT&T’s wireline operating company in Connecticut, where our company has been headquartered since 1946," said Frontier CEO Maggie Wilderotter (pictured).
“We are very pleased to have Frontier Communications as the buyer of our Connecticut wireline properties," said Randall Stephenson, AT&T’s CEO. "Frontier has proven both its ability to execute sizeable transactions and a commitment to the communications needs of urban, suburban and rural markets."
The deal, which is all cash, is expected to close by the second half of 2014, the companies said. Frontier will be getting about 415,000 data customers, almost 900,000 voice, and 180,000 residential video customers, as well as business and wholesale deals.
AT&T said it will use the proceeds from the deal in part to help transition to an all-IP, wireless and cloud network, where it has signaled its future lies.
It also committed to investing in the remaining U-Verse systems. "AT&T plans to expand our 4G LTE network to 300M people across the U.S. and, in our remaining 21-state wireline service area, to expand U-verse high speed Internet and video services to more customer locations and deploy our fiber network to more business customer locations," the company said in a statement.