AT&T unloads Connecticut wireline biz for $2B
AT&T has inked a handle Frontier Communications to the internet some critical money.
On Tuesday, the Wi-Fi service announced that it plans to promote its wireline 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 wireline trade reflects a changing focal point for the company. Over the last few years, its wireline operation has deteriorated as traditional telephone carriers have 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 wireline operation. In keeping with the corporate, it will use the $2 billion from Frontier to invest in its challenge VIP initiative — a rollout of an all-IP, wireless, and cloud network. One 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 widespread closing prerequisites, including approval using federal regulatory businesses. AT&T hopes to close the deal in the second half of 2014. This story has been up to date throughout the morning.