Frontier Communications will acquire rural assets from Verizon in an $8.6 billion stock swap.
The deal appears to be a win-win for both sides. Frontier becomes the largest "pure rural" communications provider with 7 million access lines, 8.6 million voice and broadband connections. Frontier will have 16,000 employees and operate in 27 states. Verizon unloads assets as it focuses on wireless, broadband and global services.
Verizon CEO Ivan Seidenberg said:
Longer term, this transaction is part of our multiyear effort to transform our growth profile and asset base to focus on wireless, FiOS fiber-optic services and other broadband development, and global IP. All of Verizon's remaining local landline operations have high concentrations of FiOS in more densely populated markets.
The new Frontier would have annual revenue topping $6.5 billion and EBITDA of $3.1 billion. Here's what the Frontier coverage will look like when the Verizon deal is done:
Among the moving parts outlined in a statement from Frontier (also see Verizon's side):