Why Frontier Will Escape the Curse of the Verizon Deal

Should Verizon Communications (VZ) deals come with a warning label?

In the past few years, the telecommunications company has been shedding slow-growth businesses as it focuses on its wireless and FiOS businesses. While the deals have served Verizon well, they haven’t worked out as well for those acquiring the assets–at least in three cases.

Wednesday, Frontier Communications (FTR) embarked on this path. The rural telecommunications operator agreed to acquire 4.8 million access lines in 14 states from Verizon in a deal valued at $8.6 billion. Will Frontier face the same fate? Perhaps not.

“The problems with those deals had nothing to do with Verizon or how the deals were structured. The companies had operational problems after the deals closed,” a Verizon spokesman said.

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