This excerpt taken from the VZ 8-K filed May 13, 2009.
(NOTE: Today at noon Eastern time, Verizon will hold a conference call/webcast for investors and analysts about this transaction. See details later in this release.)
Ivan Seidenberg, chairman and chief executive officer of Verizon, said: We expect that this transaction will benefit customers, employees and shareholders. Customers can count on continued high levels of service and innovation from Frontier, which will bring its laser focus on the needs of rural customers to these operations. Plus, Verizon and Frontier will work to ensure that the employees in these states, who have performed outstanding work for our customers for many years, will have a smooth transition of their employment to Frontier.
Seidenberg added: This transaction is an attractive way to add value through a special distribution to our shareholders. Longer term, this transaction is part of our multiyear effort to transform our growth profile and asset base to focus on wireless, FiOS fiber-optic services and other broadband development, and global IP. All of Verizons remaining local landline operations have high concentrations of FiOS in more densely populated markets. We believe our focus on reshaping our asset base will drive higher growth over time and improve long-term returns.
Frontier, based in Stamford, Conn., has a highly successful track record of acquiring, operating and investing in rural telecommunications properties, including landline assets purchased from Verizon between 1993 and 2000. Frontier currently has approximately 2.3 million access lines in 24 states, providing an array of services, including local and long-distance voice, broadband data, and video.
Verizon News Release, Page 3
Maggie Wilderotter, Frontiers chairman and chief executive officer, said: This is a truly transformational transaction for Frontier. With more than 7 million access lines in 27 states, we will be the largest provider of voice, broadband and video services focused on rural to smaller city markets in the United States. Frontier is committed to providing our customers with state-of-art technology and innovative products. We are confident that we can dramatically accelerate the penetration of broadband in these new markets. We know that broadband is a catalyst for a healthy local economy and job growth.