Frontier Communications Corporation
) announced the disposition of its one-third stake in regional
telecom carrier - Mohave Wireless - to Verizon Wireless. However,
none of the companies disclosed the financial terms of the deal.
FRONTIER COMMUN (FTR): Free Stock Analysis
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Over the years, Frontier Communications acted as the Ggeneral
Ppartner for Mohave Wireless that extended high-quality cell
coverage and service across northwest Arizona. Covering nearly
203,000 people, Mohave Wireless' cellular spectrum license and
operations span across Grand Canyon, Kingman, Lake Havasu City
and Bullhead City.
Verizon Wireless - a joint venture between
Verizon Communications Inc.
Vodafone Group Plc.
) - plans to absorb Mohave's CDMA EV-DO 3G network, with the
target of rolling out 4G Long Term Evolution (LTE) services in
the region in the coming months.
For the time being, Verizon Wireless will serve the existing
customers of Mohave under the old brand name. The subscribers
will be migrated to Verizon's regional wireless network after the
integration process is wrapped up in early 2014.
Verizon Wireless, which previously controlled just one-third
interest of Mohave Wireless, is now the sole owner of the latter.
Apart from the acquisition from Frontier Communications, Verizon
Wireless also purchased the remaining one-third partnership
interests from the privately held communication firm - Rio Virgin
Stamford, Connecticut based Frontier Communications - which has
business tie-ups with
) - currently holds a Zacks Rank #3 (Hold). We believe that the
company's several initiatives such as new product deployments,
broadband expansion, and cash flow management by reducing
operating expenses will be accretive to its long-term growth