Qwest Communications International Inc. on Friday announced an agreement to buy assets from bankrupt Touch America Holdings Inc. and 360networks Corp. to extend its high-speed data network and support hundreds of medium-sized and large business
customers buying frame relay and ATM services.
Qwest has agreed to purchase switches and other network gear for $1 million, an IRU - a long-term lease on Touch America's network - for $8 million and billing credits valued at $3 million, says Qwest spokeswoman Claire Maledon.
Qwest said the agreement, which a bankruptcy court judge approved Thursday, will resolve all disputes Qwest, Touch America and 360networks had over the assets.
Having received government authority to provide long-distance services within its 14-state local phone territory stretching from Minnesota to Washington, Qwest says it now can provide its business customers data services across the country. Arizona is the only state in Qwest’s territory where the regional Bell operating company is not yet authorized to provide long-distance services.
As part of the agreement, Denver-based Qwest also said it would buy fiber routes from 360networks connecting a few cities primarily located in the West: Seattle to Billings, Mont.; Billings to Denver; Denver to Colorado Springs, Colo., and Billings to Minneapolis.
The entire deal is an amended agreement Qwest and Touch America reached over the summer, at which time Qwest provided Touch America a $10 million debtor-in-possession loan.
Touch America filed for bankruptcy in June and has reached agreements to sell most of the company, including its private line and dedicated Internet businesses to 360networks. Yesterday, a judge approved the sale of nearly all Touch America’s assets, the Associated Press reported.
