Verizon Communications Inc. (NYSE, NASDAQ: VZ) says it has closed the purchase of fiber-optic network assets in the Chicago market from WideOpenWest, Inc. (NYSE: WOW) for $225 million in cash. The WOW! fiber network will enable backhaul services to more than 500 macro-cell wireless sites and more than 500 small-cell wireless sites in the Chicago area. Designed to support multi-use services, the high-capacity fiber network connects Verizon Wireless macro towers and small cells to cut down on leasing costs in the future.
In August, WOW! announced that it had reached a definitive agreement to sell the assets, and reached a second agreement with Verizon calling for an additional $50 million enabling WOW! to complete the Chicago fiber network build-out in the second half of 2018 (see "WOW! to sell portion of Chicago fiber-optic network assets to Verizon").
Following Verizon's agreements with Corning, Prysmian and Straight Path earlier this year, this transaction further advances the service provider's efforts to scale and progress next-generation broadband service deployment, says the company.
"The addition of these fiber assets is an important part of our strategy to reinforce our current network capabilities and prepare for the future," said Nicola Palmer, Verizon's chief engineer and head of wireless networks. "The completion of this acquisition will help expedite our network densification with fiber and small cells, enhancing our industry-leading 4G LTE network and laying the groundwork for 5G."
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