US telco Verizon Communications has completed its USD1.8 billion acquisition of the fibre-optic network business of XO Communications which was first announced almost twelve months ago. Verizon says the purchase and integration of XO’s fibre infrastructure will help it extend its suite of enterprise and wholesale network services, while supporting its plans to densify its cellular network and deploy new 5G technologies.
In addition to the fibre transaction, Verizon has entered into an agreement to lease wireless spectrum from former XO affiliate NextLink Wireless, with an option to buy NextLink. Verizon anticipates the transaction will deliver in excess of USD1.5 billion in operating and expense savings in net present value.
John Stratton, Verizon’s executive vice president and president of Operations, commented: ‘XO’s fibre network will add ever greater capacity and reach to Verizon’s networks, a combination that will lead to enhanced capabilities, better services and faster rollout of next generation communication networks.’
According to TeleGeography’s GlobalComms Database, XO operates metropolitan networks in each of the 30 major US markets, with over 4,000 on-net buildings, while its intercity network spans 19,000 route miles, connecting 85 cities.