(Associated Press via NewsEdge) Verizon Communications is selling its residential telephone business in three New England states for $2.72 billion, shedding more of what the company sees as non-core assets as it invests billions to upgrade its wired and wireless networks for next-generation services.
The operations in Maine, New Hampshire and Vermont, serving 1.5 million homes, will be acquired by FairPoint Communications of North Carolina, the companies announced. FairPoint owns local phone networks in 31 mostly rural markets in 18 states, including the three where it is acquiring Verizon's business.
Hoping to head off worries among local officials that Verizon's planned exit might lead to deterioration in phone and Internet service, the companies emphasized there would be no layoffs and that FairPoint would invest heavily in the region to expand broadband availability to more homes.
Verizon had previously indicated it might sell or divest its northern New England business as part of a slimming-down exercise that has included the spinoff of its phone directory business and the sale of its Hawaiian operations to an affiliate of The Carlyle Group for $1.3 billion in cash.
The company has indicated it may also divest local phone operations in more rural parts of the Midwest, though it's unclear whether any deals are in the works. Media reports have suggested the assets for sale are located in Indiana, Illinois, Ohio and Michigan.
Though it did acquire the MCI long-distance business a year ago, Verizon's overall corporate shrinkage contrasts sharply with the strategy at AT&T, which just weeks ago completed the $86 billion buyout of BellSouth, a company with extensive rural operations.
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