AT&T has made itself some major cash today with the sale of its wireline business to Connecticut’s Frontier Communications. The deal is worth $2 billion in cash. This signifies a change in the company that was in the pipeline, as the company move exclusively to a wireless ran telco. It’s not surprising considering how terrible the wireline business has been as it continues to crumble.
So what does AT&T plan to do with extra money, you ask? If you’ve guessed expansion of its 4G LTE network, then you’d be right. The second largest carrier also wants to bring more fiber to business customers. Frontier is all about wireline so it seems like a win-win for both companies.
“This is a good business decision for both companies, good for customers and good for Connecticut,” said Patricia Jacobs, President-AT&T New England. “We will continue to invest in Connecticut to serve our wireless and business customers, will maintain a significant employee presence here and will continue to be involved in the community. The fact that Frontier is headquartered in Connecticut will help ensure a smooth transition for customers and employees.”
Probably the best part about this deal is the 2,700 AT&T employees who were working in the company’s wireline biz will still have their jobs.
Via AT&T