Bidness Etc - Verizon Plans to Sell Off Wireless Assets

Verizon Communications has been seen in working towards selling off more of the company's wireless assets. Prior to that, the company announced in a press conference that the it will now work towards lessening its user-base by 21%. Having said that, the 'on-core' assets that the company own are now made available for sale to the buyers, only if they pay the right price in exchange.
At a Media and Telecom Conference held on 2nd March 2015, the CFO of the wireless providing company, Fran Shammo, declared the the firm is all set to lessen the load off its shoulders of its wireless assets which are not necessarily needed by the company in near future.
Shammo also added that the company owns the asset that are not strategically beneficial for the firm's future plans and the company needs to dispose of off them to elevate its revenue generation in the long term. He said that if there is an asset that will 'return shareholder value' then the company will get rid of it as soon as possible.

In February, the telecom company disclosed that it plans to sell off its wireless assets of three important states to Frontier Communication Corp in exchange of $10.54 billion. Once the above-mentioned transaction is carried out, the New Jersey-based company will have its user base lessened by one-fourth.
The three states have important FiOS footprint up to 51% and the company has also spent around $7 billion to improve the network system in these areas to FiOS based network from the copper network. Shammo, however, disclosed that the FiOS footprint network was seemingly smaller than the other markets.
He said that Texas, California and Florida bear an island property whereas FiOS footprint is just a part of that, hence its smaller than the copper network as it is more widely established there.
On the other hand, Verizon Communications is heavily burdened with debt. According to analysts, the wireless company will work towards lessening its debts by the sales of these wireless assets. Nevertheless, the sales can also help in buying more spectrum for the auction that is to be held in 2016, or it can also help in backing up the share repurchase program.
Verizon Communications (NYSE: VZ) has been planning a huge share purchase program by the end of which the company will be the sole owner of a 100 million shares.This plan is to be executed before the end of year 2017.