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Article: Eschelon, Qwest sign network deal worth about $150 million in revenue; One saves money; one builds rivals.(BUSINESS)
- Article from:
- Star Tribune (Minneapolis, MN)
- Article date:
- November 17, 2000
- Author:
CopyrightCOPYRIGHT 2000 Star Tribune Co. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Local phone company Qwest Communications and competitor Eschelon Telecom Inc. of Minneapolis have signed a cooperative agreement that will generate an estimated $150 million in revenue for Qwest over five years.
It is the second deal Qwest has struck with a competitor that provides favorable "resale rates." These rates encourage the competitor to use Qwest's phone network rather than build its own.
Eschelon is a small but significant Qwest competitor that provides about 5 percent of the business telephone lines in the Twin Cities. Eschelon does not serve residential customers.
Last month Qwest signed a similar agreement with McLeodUSA Inc. of ...