Consolidated Communications Holdings says its Clio subsidiary has agreed to sell its limited interests in five wireless partnerships managed by Cellco partnership, which does business as Verizon Wireless, to Verizon/Cellco for $490 million. The goal is to finance Consolidated’s ongoing fiber broadband upgrades.
There are closing conditions and third party purchase rights available to other partners in the partnership. The Consolidated wireless asset sales are expected to close by the end of the year.
“The sale of these wireless investments is part of our long-term strategy as we continue our transformation to a fiber-first broadband company,” Bob Udell, the President and Chief Executive Officer of Consolidated Communications, said in a press release. “Proceeds from these transactions will directly support our fiber expansion plan, our key strategic priority.”
This Consolidated wireless sale aims to help the company continue its push into FTTP through its Fidium Fiber brand.
The latest move on that front was last month when Consolidated said that it would bring service to more than 27,000 homes in Concord, NH.
A few weeks earlier – in late June – Consolidated said that it was delivering symmetrical 2 Gbps and Wi-Fi 6 services across entire footprint, which extends over parts of California, Illinois, Maine, Minnesota, New Hampshire, Pennsylvania, Texas and Vermont.
Fidium offers 1 Gbps service priced at $70 per month or 2 Gbps at $165 per month. WiFi 6 is the base for a mesh platform, which is designed to increase reliability and eliminate dead spots. Attune WiFi, a whole-home management app that provides network visibility, content settings, time-of-day access control, speed tests and other features, also is included. Subscribers also can get two line extenders with their subscription.
In May, Consolidated partnered with the Southern Vermont communications union district (CUD) to provide symmetrical gigabit speed broadband to almost 12,000 Bennington County homes. The project was expected to be finished by the end of the summer.