In a move to focus on its wireless components, AT&T is selling its landline services in Connecticut and fiber-optic network throughout the state to Frontier Communications for $2 billion the company said in a press release.
AT&T is also giving AT&T U-verse television and consumers who use broadband, to satellite TV subscribers to Frontier as well.
"This is a good business decision for both companies," Patricia Jacobs, president of AT&T for New England said in a statement. "This is a good business decision for both companies, good for customers and good for Connecticut. 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. "Throughout this process, we'll work closely with Frontier to ensure a smooth transition for our customers and employees," Jacobs said. "And until we close the deal and transition customers to Frontier, we'll continue to operate business as usual, delivering the great service our customers expect from us."
Frontier will get 415,000 broadband connections and 900,000 voice customers in the nutmeg state when the deal is finalized next year. Two-thousand seven-hundred employees who currently work in AT&T's building in Connecticut.
AT&T is putting $14 billion toward upgrading its network in an attempt to stay ahead of the curve of competitors such as Verizon, and cable supplier Comcast Bloomberg Businessweek reported.
The news is also the latest development in AT&T's aim to shy away from Ma Bell, also known as Bell telephone, the name it officially started out as.
The transaction requires approval from the United States Department of Justice, the Federal Communications Commission, the Connecticut Public Utilities Regulatory Authority and additional agencies throughout the state.
