AT&t said Monday that it has reached a deal with Verizon to sell some of its assets in exchange for cash.
The deal, which is subject to regulatory approval, is worth $5.6 billion.
The telecom giant said it would continue to operate as an independent company under the terms of the deal, but it said it expects Verizon to “develop and launch new and compelling applications for its network.”
The deal is expected to close by the end of 2019.
AT&ts chief executive officer Randall Stephenson said in a statement the deal was a “significant milestone” for the company.
“Today, AT&Ts new leadership and leadership team demonstrates the tremendous value we can add to our network and its customers,” Stephenson said.
“We look forward to working with Verizon in the future.”
AT&tz network will continue to be managed by Verizon, the company said.
Verizon will continue as a subsidiary of AT&TS, the statement said.
The acquisition of AT &ts network comes amid competition from other Internet providers in the market, as well as from other mobile phone companies, including Verizon, AT &t, T-Mobile, Sprint and Verizon Wireless.