DENVER -- The Federal Communications Commission (FCC) has approved the previously announced sale of Lumen Technologies' (NYSE: LUMN) incumbent local exchange carrier (ILEC) business in 20 states to Brightspeed.
With this approval, the transaction has now received all final regulatory clearances needed to close. Pending other customary closing conditions, the transaction with Apollo-managed funds (NYSE: APO) is expected to close early in the fourth quarter.
Brightspeed plans to make significant investments to build an expanded fiber optics network that will bring fast, reliable internet and Wi-Fi to communities throughout the 20-state footprint it is acquiring. These plans include providing fiber facilities that are expected to reach up to three million homes and businesses over the next five years, including in many rural and suburban locations where fiber and advanced technology have not yet been deployed.
- On August 3, 2021, Lumen announced an agreement to sell its local consumer, small business, wholesale and enterprise customer ILEC operations in 20 states to Brightspeed.
- Brightspeed will gain a robust local network, as well as the operations and back-office support to meet the accelerating demand for high-bandwidth connectivity.
- Under the terms of the transaction, Lumen will retain its ILEC operations in 16 states, where it will continue to invest in bringing fiber broadband to more communities.
- Lumen will also retain its national fiber routes and associated networks in all of these states, as well as its international operations.
"This transaction will benefit all of these customers, both in Lumen's remaining 16-state footprint and in the 20 states moving to Brightspeed," said Melissa Mann, Lumen vice president of public policy and government affairs. "The FCC's approval is great news that will bring faster broadband speeds to customers across both companies."
"The FCC's approval paves the way for Brightspeed to help close the digital divide in communities across the country that are most in need of high-quality broadband," said Tom Dailey, Brightspeed vice president of public policy and government affairs. "This is a significant step in our journey to begin serving customers as Brightspeed. We appreciate the efforts of all the regulators and our Lumen counterparts who worked diligently with us over this past year to achieve this milestone. We look forward to building our fiber network and participating in programs that support affordability for our new customers."
- Learn more about the transaction securing all state-required regulatory approvals:
- Learn more about Lumen selling its local incumbent carrier operations in 20 states to Apollo-managed funds for $7.5 billion: https://news.lumen.com/2021-08-03-Lumen-to-sell-local-incumbent-carrier-operations-in-20-states-to-Apollo-Funds-for-7-5-billion
- For more information about the transaction, visit the resource page:
- For more information about Brightspeed, visit www.brightspeed.com
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