DENVER, -- July 2, 2004 -- Qwest Communications International Inc, (NYSE: Q) and Verizon Wireless today announced an agreement for Verizon Wireless to acquire Qwest’s PCS licenses and related wireless network assets in 14 states.
The transaction is expected to close by year-end or early 2005, and will not impact new or existing Qwest wireless customers. Qwest will continue to offer wireless service under the Qwest brand to residential and business customers through its wholesale relationship with Sprint PCS.
Under the terms of the agreement, Verizon Wireless will pay $418 million in cash to purchase PCS licenses (1900 MHz) in 14 western states. In addition, Verizon Wireless will also obtain cell sites and wireless network infrastructure, site leases, and associated network equipment.
“The sale completes our shift from a network-centric wireless provider to a more customer-focused operation that is designed to deliver exceptional value and service to customers,” said Oren G. Shaffer, Qwest vice chairman and chief financial officer. “The monetization of the network assets further improves our liquidity.”
The sale is contingent upon federal regulatory approval. JP Morgan acted as a financial advisor to Qwest.
About Qwest
Qwest Communications International Inc. (NYSE: Q) is a leading provider of voice, video and data services to more than 25 million customers. The company’s 46,000 employees are committed to the “Spirit of Service” and providing world-class services that exceed customers’ expectations for quality, value and reliability. For more information, please visit the Qwest Web site at www.qwest.com.
