Level 3 Acquires Sprint's Wholesale Dial Internet Access Business

Level 3 Communications has acquired Sprint's wholesale dial Internet access business for $34 million in cash. The acquired business provides dial-up Internet access to leading ISPs throughout the U.S. The companies have entered into a transition services agreement for the migration of customers onto the Level 3 network, which Level 3 expects to complete in mid-2005. During the migration period, a portion of the cash collected from these customers will be treated by Level 3 as a reduction in purchase price, as opposed to revenue.



Sprint plans to continue providing dial 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 IP network services in support of this service. http://www.sprint.comhttp://www.Level3.com