For whom the Bell tolls: Cincinnati telco offloads wireless assets to Verizon

8 Apr 2014

Cincinnati Bell has announced that it has entered into agreements to sell its wireless spectrum licences and certain related assets to Verizon Wireless for USD194 million in cash and an assumption of certain Cincinnati Bell liabilities, taking the total value of the transaction to approximately USD210 million.

For a nominal charge, Cincinnati Bell Wireless (CBW) will lease back the spectrum it is selling for eight to twelve months, during which it will wind down its wireless network operations and assist its customers in transitioning their service arrangements to Verizon Wireless or other wireless providers. The transaction is expected to close in the second half of 2014.

Concurrently, Verizon Wireless has entered into a separate agreement to assign its rights to acquire the spectrum licences being sold by Cincinnati Bell to Grain Management, a private equity firm that invests in the media and telecoms sectors; Verizon Wireless will then lease certain frequency blocks from Grain Management.

United States, Cincinnati Bell (incl. Hawaiian Telcom), Verizon Wireless