Level 3, SBC Extend Dial-Up Deal

Under a contract extension, backbone network operator Level 3 will continue carrying dial-up Internet traffic from service provider SBC through 2006

The revamped pact adds two years to the previous contract (originally signed in January 2002). In all, the deal is worth $11 million for Broomfield, Colo.-based Level 3.

“We are firmly committed to offering a dial-up access service that features new and advanced capabilities, industry-leading call completion rates, flexible pricing options and broad geographic coverage,” said Jack Waters, a Level 3 division president.

Specifically, San Antonio, Texas-based SBC is buying (3)Connect Modem service for its dial-up and roaming DSL Internet customers.

The service, which covers most of the United States, is available on a per-port basis for a flat monthly fee or on a metered basis based on the total number of hours used. (3)Connect Modem supports the top 10 dial-up ISPs in the United States, Level 3 said.

The deal makes Level 3 the exclusive provider of wholesale dial-up acess service for SBC and its affiliates (for traffic not on SBC’s own system).

Although SBC and other service providers are concentrating on selling high-speed digital subscriber line connections (SBC has been racking up new DSL customers thanks to a partnership with Yahoo), dial-up still comprises a significant portion of their customer base.

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