Qwest to acquire assets of Allegiance Telecom

US regional telco Qwest Communications has struck an agreement with Dallas-based telecoms carrier Allegiance Telecom, which filed for Chapter 11 bankruptcy protection in May, to acquire the majority of Allegiance’s assets for a cash payment of USD300 milion and USD90 million in convertible paper. The deal is subject to bankruptcy court approval, but if it goes ahead it will increase Qwest’s Points of Presence (POPs) by around 700, giving it more than any other inter-city exchange carrier in the US. The company also hopes that Allegiance’s assets will enable it to more quickly deliver its VoIP services across the country.