Verizon Spins Off Northeast Landline Business

Telecommunications company Verizon said Tuesday that it will spin off its landline business in Maine, New Hampshire, and Vermont, merging it with Fairpoint, a Charlotte, N.C. telecommunications company specializing in rural and small urban markets. The deal would generate some $2.7 billion for both Verizon and its shareholders. The company will be the majority shareholder of the combined entity, although it will be headed by Fairpoint's current management team.

Verizon has expressed interest in spinning off its landline business in the past as it focuses on generating revenue to fund its rollout of FiOS Internet service. A report in May first indicated the above lines were for sale, and GTE lines in Indiana, Ohio, and Michigan may be next. Both areas were places where Verizon had no plans to upgrade to fiber-based lines.