Verizon Communications Inc. has become one of the most aggressive phone carriers in the country in the wake of a court ruling that would make the company’s network of landline and wireless data networks unprofitable.
The ruling, which was handed down Monday in Manhattan federal court, could result in a $4.5 billion loss for Verizon Communications as well as a $3 billion loss to customers of competitors.
Verizon’s phone network has been used by some customers to make calls, text messages, and stream music, and it also provides Internet access, among other services.
The Verizon network also provides video streaming services, video chat and music streaming, as well.
Verizon Wireless Chief Executive John Legere said the company was confident the court ruling would not have an impact on the company.
Legeres has been pushing for the carrier to sell the landline network to Verizon.
Verizon is already losing money, but the court decision could result a $1.6 billion loss, Legeretres said in a phone call with reporters on Tuesday.
Verizon said it expected the ruling to be appealed.
The phone network was developed by Verizon Wireless Corp., which merged with BellSouth Corp. in 2000 and is now owned by AT&T Inc. The merger led to widespread criticism of Verizon’s management, including the ouster of former CEO Lowell McAdam in 2009.
Verizon has made a series of acquisitions, including AOL, Yahoo!, Skype and Tumblr, to become a dominant player in the mobile space.
Legeser said the court’s ruling would be the first of its kind.
Legerre said he hoped the decision would encourage other companies to seek mergers with the company and that Verizon would not be a one-stop shop.
Verizon had estimated it could lose $5 billion in the first year of the deal, but it said it was confident in the outcome of the case.
Leergeser added that Verizon was not considering closing its network to customers.
Verizon will continue to offer service to customers who have Verizon mobile phones, Legerres said.
Verizon also will continue offering its fiber broadband network to those who already have it.
The company said the new lawsuit was not related to its phone service.
Verizon lost about a third of its phone subscribers last year.
The U.S. Federal Communications Commission (FCC) said in December that it would require carriers to open up their network to third parties, and Verizon agreed to open its landline broadband service to a group of third-party competitors.
The new lawsuit said Verizon had “failed to show it was able to compete successfully” in a new marketplace where there was “no clear competition in the broadband market.”
Verizon has been forced to make major investments to get its wireless network online, including building fiber-optic networks, which are capable of transmitting data speeds that rival those of the landlines.
Verizon and its wireless rivals, including AT&s;T, Sprint and T-Mobile US Inc., are fighting in court against the FCC’s efforts to rein in their broadband monopolies.
AT&ams plans to appeal the decision.
Verizon, which has lost $6.3 billion in profits since 2011, said it plans to fight the FCC order.