Verizon Communications Inc. (VZ - Get Report) CEO Lowell McAdam said that the telecom's interest in buying a cable company has waned as it has developed its fiber network, putting to rest speculation it would bid to acquire Charter Communications Inc. (CHTR - Get Report) .
Late last year, the Verizon boss triggered rumors that the telecom could bid for Charter Communications when he said such a deal would make "industrial sense" because of the fiber infrastructure the telecom would gain.
Shares of Verizon were down 0.5% at $47.02 before the market open on Thursday, while Charter gained 0.9% to $385.13.
As Verizon has tested advanced fiber networks in markets such as Boston, McAdam said, the telecom has found that it needs deeper infrastructure than the cable networks currently own.
The carrier intends to build the infrastructure to support its 5G wireless service and other bandwidth-intensive offers itself. Earlier this year, Verizon said it will buy up to 12.5 million miles of fiber per year for the next three years from Corning Inc. (GLW - Get Report) for at least $1.05 billion, and will also pay Italy's Prysmian Group $300 million for 10.5 million miles of fiber.
Verizon is also buying wireless spectrum holding company Straight Path Communications Inc. (STRP) for $3.1 billion. However, McAdam said Verizon is leaning more towards building more wireless infrastructure rather than acquiring spectrum.
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