In a statement, Chief Operating Officer William Spence said PPL would have had to spend a "significant level of capital" to expand and improve the network. Instead, he said, PPL has decided to focus on its core businesses of electricity supply and delivery.

PPL expects to take a one-time charge of about $18 million, or 5 cents per share, during the current quarter as it writes off the value of the telcom subsidiary. The charge will not affect PPL's forecast for earnings from ongoing operations, the company said.

The company does not break out sales figures for individual business lines, but [Dan McCarthy] said PPL Telcom accounts for "a very, very small percentage" of revenues in PPL's Supply Group. That division of the company, which mainly consists of domestic electricity production and marketing, accounted for about half of PPL's earnings in the most recent fiscal year.