The Clap
T-Mobile (NASDAQ: TMUS) is selling its wireline business to Cogent Communications (NASDAQ: CCOI) for $1, taking a $1 billion charge on the deal.
The Deets
T-Mobile is attempting to defer from the wireline business as they look to increase their efforts in 5G services.
The deal will help Cogent expand its product line for consumers and companies and may potentially replace its current leased network.
So What
The sale of the infrastructure effectively relieves T-Mobile from the cost of maintaining and improving the infrastructure.
It is worthy to mention that the deal includes a $700 million contract having Cogent provide transit services for 4 and a half years after the deal closes.
What Now
The deal is expected to be finalized by H2 2023.
“Sold for $1” – T-Mobile sells wireline business 📱
