U.S. Service Providers Spin off Assets as the Core Business Shifts

Brian Washburn
Brian Washburn

Summary Bullets:

• AT&T, Verizon, Windstream and MegaPath all share asset divestments in their recent history, shedding non-core assets through outright sales or moving them to OpEx.

• Over the long term, market forces can conceivably push asset buyers and asset sellers to evolve in different directions.

Earlier in February, Verizon reached agreements for two major sales: a roughly $10.5 billion divestment of incumbent local GTE telephone properties, and a $5 billion long-term lease/manage/purchase arrangement for its 11,300 wireless towers (see “Frontier Lands the Rest of Former GTE Telephone as Verizon Cuts Deals to Raise $15 Billion,” Feb. 9, 2015). The wireless tower long-term lease details resemble a similar arrangement AT&T reached with Crown Castle in October 2013. Continue reading “U.S. Service Providers Spin off Assets as the Core Business Shifts”