US regional operator Cincinnati Bell announced plans to move away from the mobile market, with a deal to sell its licences and some related assets to US number one Verizon Wireless.

In a statement, Ted Torbeck (pictured), president and CEO of Cincinnati Bell, noted: “It has become economically challenging for us to invest in our wireless business at the levels necessary to deliver best-in-class service to our customers.”

Following the deal, Cincinnati Bell Wireless will “for a nominal charge” lease back spectrum it is selling, during which time it will “wind down its wireless network operations and assist its wireless customers in transitioning their service arrangements to Verizon Wireless or other wireless providers”.

It intends to continue providing wireless services “for 8-12 months from the time of signing”.

The regional player has agreed to sell “all of its right, title and interest in its wireless spectrum for $194 million”, with Verizon Wireless also assuming certain tower lease obligations, bringing the total value of the deal to approximately $210 million.

Cincinnati Bell reported an operating income of $18 million for 2013 from its wireless unit, including a $1 million loss in Q4, on revenue of $202 million, down 17 per cent compared with 2012.

Its mobile customer base was 340,000 at the end of the year, down from 398,000 in the prior-year.

At the same time, Verizon Wireless has entered an agreement to assign rights to acquire the licences in question to private equity firm Grain Management, after which the operator will lease some of them back.