Lumen announced it has closed the sale of the part of its incumbent local exchange carrier (ILEC) business that serves consumers, small businesses, wholesale, local enterprises and government entities in 20 Midwest and Southeast states, and parts of NJ and PA, as follows:
Lumen retains its local incumbent network and assets in 16 states including:
Lumen also retains its national fiber routes and competitive local exchange carrier (CLEC) networks in all 36 states.
The transaction provides Brightspeed with a robust, scaled local network, along with the operations and back-office support to meet the accelerating demand for high-bandwidth connectivity and fiber technology.
Brightspeed is a dynamic new company comprised of industry leaders committed to enhancing the service experience for new and existing customers and to create a next-generation telecom and connectivity business. Brightspeed currently plans to invest at least $2 billion to build a network that will bring faster, more reliable Internet and Wi-Fi to communities throughout the Midwest, Southeast, and certain parts of Pennsylvania and New Jersey. At closing Brightspeed is comprised of the incumbent local exchange carrier (ILEC) assets and associated former operations of Lumen Technologies across 20 states and is owned by funds managed by affiliates of Apollo Global Management, Inc. (NYSE: APO).
We continue to offer residential broadband services in Arizona, Colorado, Florida, Idaho, Iowa, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming.
Customers served by the Lumen ILEC network transitioned to Brightspeed when the transaction closed. We still have competitive local exchange carrier (CLEC) customers in these 20 states.
The sale allows us to increase our level of current fiber investments and expand the Quantum Fiber footprint where we see positive momentum around growing our customer base and providing a differentiated customer experience. We offer Quantum Fiber internet services in the 16 states we continue to serve. Quantum Fiber customers in Springfield, Mo., or any other ILEC market are now served by Brightspeed.
We believe this transaction will be positive for consumers in the impacted states as Brightspeed pursues its own fiber deployment plans and invests in bringing faster and more reliable internet service to many rural markets.