March 8, 2004 — (WEB HOST INDUSTRY REVIEW) — Texas-based Allegiance Telecom (algx.com) announced on Monday that it has reached a settlement with Level 3 Communications (level3.com) to terminate a vendor agreement.
Based on the terms of the settlement, a multi-contract under which Level 3 is to purchase wholesale dial access services from Allegiance, will be terminated. Level 3 has agreed to pay Allegiance $54 million in cash for the contract and associated assets.
The contract was assumed by Level 3 after it acquired Genuity’s assets last year, in a deal first agreed to in November 2002.
