As part of the company's continual plans to build and deliver next-generation networks, Verizon has completed the $1.8 billion acquisition of XO Communications' fiber-optic network business that was announced early last year.
XO controls 20,000 miles of long-haul fiber routes and many more miles of short-haul lines that are used by corporations and other telecom companies to carry Internet data.
According to Verizon, the purchase and integration of XO's fiber network will help the company extend its suite of high-quality network services to its enterprise and wholesale customers. In addition, it will help the company in its plans to densify its cellular network, and to deploy new 5G technologies.
Integration of all XO operations and facilities is expected to commence immediately. The company expects to achieve significant synergies by incorporating XO's fiber assets as part of its current network operations. Verizon anticipates the transaction will deliver in excess of $1.5 billion in operating and expense savings in net present value.
In addition to the fiber transaction, Verizon has entered into an agreement to lease certain wireless spectrum from former XO affiliate NextLink Wireless. Verizon has an option, exercisable under certain circumstances, to buy NextLink.
John Stratton, EVP & President of Operations, Verizon
XO's fiber 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.
