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T-Mobile to sell wireline business to Cogent, expects $1 bln charge

A T-Mobile logo is advertised on a building sign in Los Angeles, California, U.S., May 11, 2017. REUTERS/Mike Blake

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Sept 7 (Reuters) – T-Mobile US Inc (TMUS.O) is doubling down on 5G services by selling its wireline business to Cogent Communications Holdings Inc (CCOI.O) in a deal it expects to result in a $1 billion pre-tax charge.

The deal announced on Wednesday has a value of $1 and under it Cogent will also offer certain services to T-Mobile for $700 million for the next four and a half years after the transaction closes.

T-Mobile has been shifting its focus away from the wireline business, which includes assets from its $26 billion acquisition of Sprint Corp in 2020, as the carrier expands its 5G and high-speed internet services.

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In the most recent earnings call, T-Mobile CEO Michael Sievert said the company was…

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