New-York-based telecom and broadband company, Verizon Communications has arrived on a deal with Frontier Communications Corp., to sell its rural landline service areas spread outside main Northeastern and Californian territories in an all-stock deal worth $5.3 billion. Frontier will take around $ 3.3 billion in debt.

With this deal, Verizon reemphasizes its strategy of concentrating on its core areas, where it is upgrading its phone lines to fiber optics, enabling it to offer TV service and faster Internet access.

Frontier, with its existing 2.3 million customers, will receive an additional 4.8 million phone lines for residential and small business customers and 1 million broadband connections on completion of the deal.

Shareholders of Verizon will get one share of Frontier stock for approximately every 4.2 shares of Verizon stock, which depends on the price of Frontier shares at closing.

Frontier shares fell 28 cents, or 3.7 percent, to $7.29 in trading Wednesday. And Verizon shares fell 65 cents, or 2.1 percent, to close at $29.75.

Earlier in 2008, Verizon sold off its phone lines in Maine, New Hampshire and Vermont for $2.3 billion to FairPoint Communications Inc.