Transaction will bring new broadband
investment to 20-state region
DENVER, Aug. 22,
2022 /PRNewswire/ -- The Federal Communications
Commission (FCC) has approved the previously announced sale of
Lumen Technologies' (NYSE: LUMN) incumbent local exchange carrier
(ILEC) business in 20 states to Brightspeed.
With this approval, the transaction has now received all final
regulatory clearances needed to close. Pending other customary
closing conditions, the transaction with Apollo-managed funds
(NYSE: APO) is expected to close early in the fourth
quarter.
Brightspeed plans to make significant investments to build an
expanded fiber optics network that will bring fast, reliable
internet and Wi-Fi to communities throughout the 20-state footprint
it is acquiring. These plans include providing fiber facilities
that are expected to reach up to three million homes and businesses
over the next five years, including in many rural and suburban
locations where fiber and advanced technology have not yet been
deployed.
Speed Read:
- On August 3, 2021, Lumen
announced an agreement to sell its local consumer, small business,
wholesale and enterprise customer ILEC operations in 20 states to
Brightspeed.
- Brightspeed will gain a robust local network, as well as the
operations and back-office support to meet the accelerating demand
for high-bandwidth connectivity.
- Under the terms of the transaction, Lumen will retain its ILEC
operations in 16 states, where it will continue to invest in
bringing fiber broadband to more communities.
- Lumen will also retain its national fiber routes and associated
networks in all of these states, as well as its international
operations.
"This transaction will benefit all of these customers, both in
Lumen's remaining 16-state footprint and in the 20 states moving to
Brightspeed," said Melissa Mann,
Lumen vice president of public policy and government affairs. "The
FCC's approval is great news that will bring faster broadband
speeds to customers across both companies."
"The FCC's approval paves the way for Brightspeed to help close
the digital divide in communities across the country that are most
in need of high-quality broadband," said Tom Dailey, Brightspeed vice president of public
policy and government affairs. "This is a significant step in our
journey to begin serving customers as Brightspeed. We appreciate
the efforts of all the regulators and our Lumen counterparts who
worked diligently with us over this past year to achieve this
milestone. We look forward to building our fiber network and
participating in programs that support affordability for our new
customers."
Additional Resources:
- Learn more about the transaction securing all state-required
regulatory approvals:
https://www.prnewswire.com/news-releases/brightspeed-achieves-major-regulatory-milestone-in-its-operational-readiness-preparations-301578988.html
- Learn more about Lumen selling its local incumbent carrier
operations in 20 states to Apollo-managed funds for $7.5 billion:
https://news.lumen.com/2021-08-03-Lumen-to-sell-local-incumbent-carrier-operations-in-20-states-to-Apollo-Funds-for-7-5-billion
- For more information about the transaction, visit the resource
page:
https://news.lumen.com/apollo-transaction-resource-center
- For more information about Brightspeed, visit
www.brightspeed.com
About Lumen Technologies and the People of Lumen:
Lumen is guided by our belief that humanity is at its best when
technology advances the way we live and work. With approximately
450,000 route fiber miles and serving customers in more than 60
countries, we deliver the fastest, most secure platform for
applications and data to help businesses, government and
communities deliver amazing experiences. Learn more about the Lumen
network, edge cloud, security, communication and collaboration
solutions and our purpose to further human progress through
technology at news.lumen.com, LinkedIn: /lumentechnologies,
Twitter: @lumentechco, Facebook: /lumentechnologies, Instagram:
@lumentechnologies and YouTube: /lumentechnologies. Lumen and Lumen
Technologies are registered trademarks in the United
States.
About Brightspeed
Headquartered
in Charlotte, N.C. and expected to have assets and
associated operations in 20 states, Brightspeed will
provide broadband and telecommunications services through a network
platform capable of serving more than 6 million homes and
businesses. The company aims to bridge the digital divide by
deploying a state-of-the-art fiber network and a customer
experience that makes staying connected simple and seamless. For
more information about Brightspeed, please visit the company's
website, www.brightspeed.com.
Forward Looking Statements
Except for historical and
factual information, the matters set forth in this release and
other of the parties' oral or written statements regarding the
timing and impact of the proposed transaction, and other statements
identified by words such as "estimates," "expects," "anticipates,"
"believes," "plans," "intends," and similar expressions, are
forward-looking statements. These forward-looking statements are
not guarantees of future results and are based on current
expectations only, are inherently speculative, and are subject to a
number of assumptions, risks and uncertainties, many of which are
beyond the parties' control. Actual events and results may differ
materially from those anticipated, estimated, projected or implied
by those statements if one or more of these risks or uncertainties
materialize, or if underlying assumptions prove incorrect. Factors
that could affect actual results include but are not limited
to: the possibility that the purchaser will not be able to
finance its purchase on the terms contemplated or at all; the
possibility that the conditions to the parties' respective closing
obligations will not be met or waived in a timely manner or at all;
the possibility that the anticipated benefits from the transaction
will not be realized in the manner contemplated; changes in general
market, economic, tax, regulatory or industry conditions; and other
risk factors and cautionary statements as detailed from time to
time in the parties' reports filed with the U.S. Securities and
Exchange Commission. There can be no assurance that the
above-described transactions will in fact be consummated in the
manner described or at all. You should be aware that new factors
may emerge from time to time and it is not possible for us to
identify all such factors nor can we predict the impact of each
such factor on the proposed transactions. You should not place
undue reliance on these forward looking statements, which speak
only as of the date of this press release. Unless legally required,
the parties undertake no obligation and expressly disclaim any such
obligation to update publicly any forward-looking statements,
whether as a result of new information, future events or
otherwise.
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SOURCE Lumen Technologies