AT&T unloads Connecticut wireline biz for $2B
AT&T has inked a handle Frontier Communications to internet some critical money.
The Wi-Fi service on Tuesday announced that it plans to promote its wire line trade in Connecticut to Frontier Communications for $2 billion in money. Frontier bargains communications services to residential and industrial customers.
AT&T’s choice to promote its Connecticut wire line trade reflects a changing focal point for the company. Over the last few years, its wire line operation has been deteriorating as traditional telephone carrier has declined and trade clients have opted for newer, Wi-Fi applied sciences. AT&T’s wireless trade, however, has been rising at a speedy price, making it a little extra interesting within the company’s strategic plan.
That was reflected in feedback AT&T made on Tuesday following its announcement of plans to sell the wire line operation. In keeping with the corporate, it is going to use the $2 billion from Frontier to invest in its challenge VIP initiative — a rollout of an all-IP, wireless, and cloud network. One in every of venture VIP’s core initiatives is to increase the corporate 4G LTE network. AT&T additionally needs to carry more fiber to business customers.
Along with getting AT&T’s residential and commercial consumers, Frontier will tackle the 2, seven hundred workers currently aiding that network. AT&T’s operation is generating $1.2 billion in annual revenue, or lowers than 1 percent of its whole annual earnings in 2013.
AT&T’s sale is subject to widely wide-spread closing prerequisites, including approval by means of federal regulatory businesses. AT&T hopes to close the deal in the second half of of 2014.
This story has been up to date throughout the morning.