Level 3 Acquires Sprint's Wholesale Dial-Up Internet Business

Level 3 today announced that it has purchased Sprint's wholesale dial-up Internet access business for $34 million in cash. Sprint is one of the largest providers of wholesale dial-up service to ISPs in North America. The purchase will expand Level 3's reach into secondary and tertiary markets not currently served by its Level 3 network.

Sprint will continue to provided dial-up IP services to its enterprise and small-business customers as part of its remote access service product offering. Under a separate agreement, Level 3 will provide Sprint with wholesale dial-up IP network services to support this service.

"Over the past two years, we have successfully acquired and integrated network assets from dial-access service providers such as McLeodUSA, Genuity and ICG," Kevin F. Bostick, Level 3 senior vice president of softswitch services said in a statement. "We're committed to providing a seamless transition for Sprint's customers, and we believe our industry-leading experience in this area will enable us to deliver the highest quality of service to these customers going forward."

"Sprint will work to ensure a smooth transition for its wholesale dial Internet customers who are included in this transaction," added Howard Janzen, president of Sprint Business Solutions. "While the wholesale dial access business is not a core focus for Sprint, this transaction also will provide a basis for Sprint to continue to offer its broad portfolio of integrated remote access services to enterprise and small-business customers."