GTE puts exchanges on the block

GTE said last week it would sell 1152 exchanges in 13 states as part of a previously announced repositioning. The exchanges represent about 1.6 million of GTE's 21.5 million access lines and 2100 employees.

The exchanges for sale mostly represent locations where GTE has no other properties nearby. However, some exchanges were included to create clusters of potential properties, said a GTE spokeswoman.

Among the potentially more lucrative exchanges up for sale are several in northern California.

Already, the company has received inquiries from 200 potential bidders, including several independent telcos. According to the spokeswoman, GTE will give preference to buyers wanting regional and state clusters, and it's unlikely the company will sell individual exchanges.

GTE also said it would continue to offer long-distance and Internet access in the areas served by the exchanges.

As part of a repositioning announcement in April, the company said it would generate $2 billion to $3 billion in after-tax proceeds that will be used to fund high-growth, strategic initiatives.

GTE added that the sale is unrelated to its pending merger with Bell Atlantic.

States with all exchanges for sale

Alaska

Arizona

Minnesota

New Mexico

Arkansas

Iowat

Nebraska

Oklahoma

States with some exchanges for sale

California

Missouri

Wisconsin

Illinois

Texas

Frontier Communications has signed a three-year agreement with competitive local exchange carrier PaeTec. Under the agreement, Frontier will provide private line, calling card and toll-free services.

Electric Lightwave Inc. rolled out services in Chicago and New York City. The CLEC will offer businesses high-speed Internet and data services, including frame relay, ATM and transparent LAN.

Hyperion Communications has entered into agreements with MediaOne to end their relationship and acquire the remaining interests in fiber optic networks serving Jacksonville, Fla. The agreements give Hyperion 100% ownership of 1000 route-miles of fiber.

Digital service provider Flashcom rolled out DSL service in Washington, D.C. The company provides DSL service to residential and business customers in California, Connecticut, Illinois, Massachusetts, New Jersey and New York.