Frontier Communications is set to begin a new chapter in its home state as it has completed its $2 billion acquisition of AT&T's (NYSE: T) wireline operations in Connecticut and its related statewide fiber network and U-verse operations.
Just last week, Frontier got the State of Connecticut Public Utilities Regulatory Authority's (PURA) final approval of the acquisition.
As part of the acquisition, Frontier will also assume ownership of AT&T's Dish (NASDAQ: DISH) satellite TV customers in Connecticut. By completing this deal, Frontier will now offer services in 28 states.
"Our expansion into Connecticut shows Frontier is growing strategically in addition to organically in our suburban and rural markets," said Maggie Wilderotter, Frontier's chairwoman and CEO, in a release. "We offer great broadband products that include customer protection for their online experience."
Using AT&T's established network as a foundation, Frontier said it will invest $63 million over the next three years to expand the reach of the U-verse video and broadband network to offer speeds of 10 Mbps and higher for over 100,000 households. The service provider will also build a fiber-based middle mile network that will connect all of its central offices across the state and dedicate about $3 million to expand broadband to areas it says are currently "unserved or underserved."
In addition to acquiring nearly 415,000 data, 875,000 voice, and 215,000 video connections in Connecticut, including AT&T's local business connections and existing carrier wholesale relationships, Frontier will take on 2,500 former AT&T Connecticut employees.
Frontier said that starting on Oct. 25 it will begin a full conversion of AT&T's Connecticut wireline, broadband and video operations into Frontier's systems, in order to ensure that existing residential and business customers' service will not be impacted. Given the success it had in converting Verizon's (NYSE: VZ) former operations in 14 rural states, Frontier said it is confident that the integration can be done in a timely manner.
- see the release
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