T-Mobile sells wireline business to Cogent for $1, expects hefty charge

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

Sept 7 (Reuters) – T-Mobile US Inc (TMUS.O) is doubling down on 5G services after it struck a deal on Wednesday to sell its wireline business to Cogent Communications Holdings Inc (CCOI.O) for $1, while taking a $1 billion charge on the transaction.

The deal includes a $700 million contract under which Cogent will provide transit services to the carrier for 4-1/2 years after the deal closes.

T-Mobile has been turning its attention away from the wireline business that includes assets from its $26 billion acquisition of Sprint Corp in 2020.

In the most recent earnings call, Chief Executive Michael Sievert said the company was no longer using Sprint infrastructure to support its wireless business and that…