Cogent to Buy T-Mobile Wireline Business: What’s That? You Ask

Competitive fiber network operator Cogent Communications reached a definitive agreement to buy T-Mobile’s wireline business. T-Mobile’s wireline business is comprised of the long-haul fiber network assets that the company acquired when it merged with Sprint. Over the years Sprint expanded and upgraded its fiber network and branched into other wholesale and enterprise services. Cogent was formed in 1999 as a competitive fiber network operator and has since become one of the top providers of Internet backbone connectivity and other wholesale and IP-centric services. The T-Mobile wireline business will complement and eventually replace Cogent’s current leased network. In addition, the network will enable Cogent to expand its product set, including the sales of optical wave transport services to new and existing customers. The deal seems to make sense for T-Mobile as it should enable the company to focus on its core wireless business and should generate cash that could be used to expand the wireless network.