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Prodigy Extends Relationship with McLeodUSA

Prodigy Communications Wednesday renewed its relationship with competitive local exchange carrier (CLEC) McLeodUSA, giving the CLEC a three-year, multi-million dollar contract to provide dial network services for Prodigy's dial and roaming DSL customers.

The deal extends a relationship the two companies have maintained since 1997.

Under the agreement, McLeodUSA is the preferred network provider for Prodigy outside SBC Communications' 13-state region. Prodigy said the deal amounts to 70 percent savings over previous access providers due to McLeodUSA's robust second- and third-tier market presence.

"Prodigy customers are accustomed to speed and availability few ISPs can deliver, and through this new agreement, McLeodUSA will have a major role in ensuring exceptional service delivery," said Curt Gray, senior executive of McLeodUSA Wholesale Communication Services. "We are committed to working closely with Prodigy to create the most efficient use of network resources and achieve joint economies of scale by executing our network plan to increase efficiencies, reduce network costs, and focus on core on-net locations."

Financial terms of the agreement were not disclosed.