updated 01:56 pm EDT, Wed April 9, 2014
Subscribers of Cincinnati Bell will continue to have service for up to 12 months
Verizon Wireless has made an agreement with Cincinnati Bell to acquire its wireless spectrum, an act that will effectively shutter the wireless service in the future. The deal, valued at approximately $210 million, will see Verizon receive the spectrum licenses and related assets in exchange for $194 million in cash and an "assumption of certain Cincinnati Bell liabilities."
The deal itself is expected to close sometime in the second half of 2014, reports GigaOM, though it will not immediately end wireless services for Cincinnati Bell customers. Under the deal, it will lease back the spectrum for a period after the closure, with the company expecting to continue offering service to subscribers for the next 8 to 12 months, though it will be reaching out to help transition customers to other wireless services. Also under the deal, Verizon will also take over operations of a number of tower leases.
"This transaction is an important step toward increasing focus on our growing strategic product base," advised Cincinnati Bell CEO and president Ted Torbeck. "It has become economically challenging for us to invest in our wireless business at the levels necessary to delivery best-in-class service to our customers," claims Torbeck, adding that the transaction will not only give customers access to a top-tier wireless service by transitioning to another carrier, but it will "also give us increased flexibility to meet their growing demand for our FiOptics suite of products."