Verizon Communications has agreed to buy XO Communications’ fibre-optic network business for a cash consideration of USD1.8 billion. The US telecoms giant says that the takeover of XO’s fibre-based IP and Ethernet networks will help better serve its enterprise and wholesale customers. In addition, the acquired fibre facilities will help with wireless backhaul as Verizon continues to densify its cellular network. The transaction is subject to customary regulatory approvals and is expected to close in the first half of 2017. Separately, Verizon will lease available XO wireless spectrum, with an option to buy XO’s entity that holds its spectrum by year-end 2018.
According to TeleGeography’s GlobalComms Database, XO operates metropolitan networks in each of the 30 major US markets, with over 4,000 on-net buildings, while its intercity network spans 19,000 route miles, connecting 85 cities.