Verizon, SBC pull access line auctions

Verizon Communications has decided to suspend it auctions of local access lines in upstate New York, according to an internal announcement made yesterday. Additionally, SBC Communications has halted its auction of line in Texas and Michigan, according to a report in the Financial Times.

The Verizon auction encompassed 2.5 million access lines. However, according to numerous reports, the company found no one willing to bid as much as the company had anticipated. In an employee bulletin, the company said it had suspended the auction without giving a reason.

“We will continue, as part of our ongoing efforts, to evaluate the upstate access lines and other assets and properties in our portfolio for strategic fit and financial performance,” the announcement said.

Verizon announced in February that it was in discussions with potential buyers. The halting of both the SBC and Verizon auctions marks the second and third time large carriers have shut down access line auctions without completing a sale. Citizens Communications announced early this year that it was reviewing strategic alternatives. Several industry sources said the company was attempting to sell all of its access lines, which also includes its Rochester, NY exchanges.