American wireless carrier AT&T today announced that it closed its $2 billion deal with Frontier Communications to sell its wireline, broadband and video operations in Connecticut.
AT&T in a statement said that it will use the proceeds of the $2 billion cash transaction for general corporate purposes. The company announced the deal in December 2013.
Though AT&T is exiting from wireline business in Connecticut, it will continue to have a significant presence in the state, providing wireless service, networking, application solutions and professional services for consumers and business customers.
John Emra, president, AT&T Connecticut, said: “We’ll continue to deliver networking business solutions as well as mobile products and services to families and businesses throughout the state.”
As part of the transaction, AT&T’s business and consumer wireline customers in Connecticut — and about 2,500 employees who support these operations — will transfer to Frontier on October, 25, 2014.
Frontier on wireline deal
Frontier Communications said the acquisition includes AT&T’s wireline business, fiber network, and U-verse operations in Connecticut.
Frontier also acquired AT&T’s DISH satellite TV customers in Connecticut. Connecticut will become the 28th state in Frontier’s portfolio.
“Our expansion into Connecticut shows Frontier is growing strategically in addition to organically in our suburban and rural markets. We offer great broadband products that include customer protection for their online experience,” said Maggie Wilderotter, chairman and chief executive officer of Frontier.
Frontier will make capital investments (Capex) of $63 million over the next three years for U-verse expansion and broadband network speed enhancements to increase speeds to 10Mbps or greater for more than 100,000 households.
It will also construct a fiber network connecting central offices across the state and dedicate at least $3 million of capital to expanding broadband to areas currently unserved or underserved.
Frontier acquired approximately 415,000 data, 875,000 voice, and 215,000 video connections in Connecticut, including AT&T’s local business connections and existing carrier wholesale relationships.