NEWS BRIEFS February 2004

Posted: 2/2004

NEWS BRIEFS

Qwest Communications
International Inc. has signed an agreement to buy the
assets of bankrupt Allegiance Telecom Inc. for $300 million in cash and issue $90 million in convertible
debt, the companies announced in mid-December. Denver-based Qwest says it plans
to buy assets in 36 metropolitan markets, 31 of which are located outside of its
14-state local phone territory. The agreement is subject to bankruptcy court
approval, and another company could outbid Qwest for the Allegiance assets
during an auction. Other companies, including XO Communications Inc. and Level 3
Communications Inc., reportedly have shown an interest in buying Allegiance, one
of the biggest facilities- based competitive phone and data providers.

The telx Group Inc. and Stealth Communications have
launched the Voice Peering Fabric, an Ethernet fabric designed to create
transparency between buyers and sellers of VoIP traffic. Essentially a neutral trading proposition, members are listed
on the VPF Web site, and can post, buy and sell routes. Participants may contact
each other either offline or online to negotiate the pricing, terms and
conditions. The VPF takes care of the settlement operations. The VPF is
carrier-neutral and is not counterparty to any minutes-based transaction.

Satellite phone company Globalstar
LP, says a bankruptcy court judge has approved the
sale of its assets and an 81 percent stake in the company to investment firm
Thermo Capital Partners LLC for $43 million in cash and $10 million in debt, but
Globalstar is considering a competing bid from Cogent
Communications Group Inc. Cogent told the judge it
wants to acquire the satellite phone company for about $100 million in stock,
according to Globalstar.

Cable & Wireless plc has
agreed to sell its U.S. hosting and IP businesses to Gores
Technology Group LLC, a Los Angeles-based private
investment firm, for $125 million. C&W says its subsidiaries filed for
bankruptcy court protection to facilitate the planned sale comprising $50
million in cash and $75 million in a note. The Delaware bankruptcy court may
accept higher bids for the assets. C&W announced plans June 4 to exit the
U.S. market.

CNM Network has
become Callipso. Callipso, which moved its headquarters to Santa Ana, Calif.,
plans to expand its voice over IP offerings to include enhanced IP services. The
new offers include 100 percent domestic coverage through its enhanced
origination solutions product, EOS Plus! and international coverage through Callipsos carrier
partnerships in high-growth markets such as Mexico, Canada and China. Were
answering the call from our customers, bringing to market enhanced IPenabled
services that truly provide increased capabilities, greater flexibility and
reduced costs, says Deb Lenart, CEO at Callipso, who recently installed a new
senior management team.

Progress Telecom and
EPIK Communications on announced a merger agreement that would create a bigger
wholesale broadband provider in the Southeast. The merged company, Progress
Telecom LLC, will operate from the Tampa, Fla., area under President and CEO Ron
Mudry. Mudry announced the executive team: Paul Aiello, vice president of sales
and marketing; Greg Tennant, vice president of customer service deliver.
Elizabeth Walker, vice president of network operations, provisioning and field
services; Greg Hadlock, director of planning, engineering and
technology; and Patricia Morrison, director of finance. The company is owned by Progress Energy and Odyssey Telecorp,
a telecom investment firm based in Palo Alto, Calif.