RealTime IT News

Data Teleport Bid Approved

CenturyTel is a step closer to acquiring the assets of Digital Teleport for $38 million, a pickup that would further its mid-market strategy and augment its network.

The deal between the Monroe, La., and St. Louis communications service providers cleared one of its final hurdles Thursday, securing approval from a U.S. bankruptcy court judge. The transaction should be completed in the second quarter.

"Digital Teleport's regional fiber network will help CenturyTel reduce or eliminate existing network costs from other transport providers and pursue additional revenue opportunities," said Glen F. Post, III, CenturyTel's chairman and CEO.

CenturyTel, which provides local, long-distance, Internet and data services to 3 million customers in 22 states, will assume all Digital Teleport contracts with customers and with most suppliers.

"(The) purchase should eliminate any remaining concerns that our customers, suppliers and employees may have about the longterm financial stability and future of Digital Teleport," said Paul Pierron, Digital Teleport's president and CEO.

The majority of Digtal Teleport's customers are in the Midwest. The company also provides fiber-optic communications services to enterprise customers and government agencies in St. Louis.