SBC: Access line sale not related to Cingular

SBC said today that it may be selling some of its rural access properties but not as a way to fund Cingular’s acquisition of AT&T Wireless.

SBC, which owns 60% of Cingular, said in a prepared statement that it has received a number of inquires regarding the sale of rural access lines for more than two years. However, the company has enough financial resources to fund its portion of the AT&T Wireless acquisition.

"The numerous companies and private capital groups interested in acquiring rural access lines believe that they may be more valuable to them than to SBC," the statement said. "This belief is based in part on the regulatory constraints imposed on SBC that are often not imposed on smaller carriers."

SBC is exploring the sale of up to 650,000 lines, according to a report in yesterday’s Wall Street Journal. If true, SBC would be joining Verizon, which is reportedly eyeing the sale of its upstate New York and Hawaii exchanges. Cititzens Communications, one of the largest independent telcos, also is exploring numerous options including selling off all of its exchanges.

Citizens, which serves slightly more than 2 million access lines, is trying to sell its exchanges as a single entity, according to numerous sources. However, given the location of many of those exchanges in economically depressed markets, the company is having difficulty finding buyers, said one financial source.

SBC said it has reached no conclusion on any access line sale but it has "the fiduciary responsibility to explore all options and determine if a sale is in our owners' best interests."