Verizon Communications Inc. announced yesterday that it plans to spin off its fixed-line telephone business in three northeastern U.S. states, in the form of a $2.7 billion merger with FairPoint Communications, a small rural carrier.
Verizon’s local landline operations in Maine, New Hampshire, and Vermont will be merged into those of FairPoint, with Verizon retaining a 60% share of the new entity.
The merged entity will serve around 1.6 million local phone customers, 234,000 high-speed internet subscribers, and 600,000 long distance telephone users, making the the eight largest telecom provider in the United States.
FairPoint and Verizon both expect the deal to be closed within the next 12 months.
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