CenturyLink is promoting massive parts of its copper community in 20 states to a private-equity agency, letting the telco pull out of rural areas the place it does not plan to put in fiber-to-the-home know-how. CenturyLink agreed to promote the networks for $7.5 billion to Apollo Funds, a private-equity fund operated by Apollo International Administration. Apollo can even take $1.four billion of debt off CenturyLink’s arms.
Underneath the deal anticipated to shut within the second half of 2022, Apollo will purchase the CenturyLink ILEC (Incumbent Native Alternate Service) enterprise within the 20 states, together with “client, small enterprise, wholesale, and principally copper-served enterprise prospects and property,” a press launch mentioned yesterday. The networks within the pending sale attain seven million residences and companies however solely have 200,000 fiber-to-the-premises deployments.
CenturyLink mentioned it can hold its ILEC networks in 16 states the place it has 2.four million fiber-to-the-premises deployments amongst 21 million houses and companies, saying these networks have “important overlap” with its “enterprise and fiber-to-the-home construct alternatives.”
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