XO goes wireless, sells wireline biz for $700M

XO Communications announced that it will launch a fixed broadband wireless service tailored to businesses and service providers. In order to fund the operation, XO will sell its national telecom business for $700 million. Under the terms of the agreement, XO will retain its spectrum assets, allowing access to one of the largest wireless licenses in the 28 GHz-31 GHz spectrum. The brand name XO Communications will stick with the wireline company, but the wireless operation will sport a new name that has yet to be decided. Elk Associates, whose owner Carl Ichan is also a controlling stockholder in XO, won the bid to buy the wireline company. There's plenty of room, come on in.

For more on XO's launch into the wireless space:
- take a look at this press release