Cincinnati Bell to Sell Wireless Division to Verizon

By Kimberly Koerth Comments
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**Editor's Note: Please click here for a recap of the biggest communications mergers in Q4 2013.**

Verizon Wireless is getting a little bigger.

Cincinnati Bell will sell its wireless spectrum licenses and other related assets to America's largest wireless provider in a deal worth about $210 million.

CBW expects to continue to provide wireless service for another eight to 12 months. The cash flow from these ongoing operations are expected to largely offset the anticipated one-time fees associated with winding down the business. Cincinnati Bell will lease back the spectrum it is selling for a period of time following the closing of the purchase transaction, during which it will wind down its wireless network operations and help its wireless customers move their service arrangements to Verizon Wireless or other providers.

Cincinnati Bell found itself with the difficult task of competing in the wireless category against its much bigger rivals that can offer nationwide service.

"This transaction is an important step toward increasing focus on our growing strategic product base," Cincinnati Bell President and CEO Ted Torbeck said. "It has become economically challenging for us to invest in our wireless business at the levels necessary to deliver best-in-class service to our customers. This transaction not only ensures that our customers have access to top-tier wireless service, but it also gives us increased flexibility to meet their growing demand for our Fioptics suite of products."

The deal is expected to close in the second half of the year.

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