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from last month, Verizon’s pending purchase of XO Communications’ fiber-optic network business had XO’s master agents worried about the future of their contracts.
Announced in February, the roughly $1.8 billion deal is expected to close during the first half of 2017. It would provide Verizon with access to XO’s fiber-based IP and Ethernet networks, “helping to better serve enterprise and wholesale customers,” according to XO. In addition, the acquired fiber facilities will help Verizon continue to densify its cell network.
XO master agents Intelisys, WTG and PlanetOne Communications spoke with Channel Partners about their concerns regarding their contracts, but said they are optimistic about new opportunities with Verizon.
Rick Dellar, Intelisys co-founder, said that after speaking with senior-level XO executives, there does not appear to be any available information about what will happen to XO once the acquisition is final.
“It’s disappointing to not have any substantive information about what will happen to XO, to our ability to take care of our customers placed through XO, or what will happen to the commissions we’ve built up over the past two decades,” he said.