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Call-Net completes transaction to acquire assets of 360networks in Eastern Canada

Call-Net Enterprises Inc. has completed a transaction to acquire certain assets of 360networks Corp. from Bell Cana...


November 22, 2004  


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Call-Net Enterprises Inc. has completed a transaction to acquire certain assets of 360networks Corp. from Bell Canada, including significant portions of its business customer base and specific network facilities in Ontario, Quebec and Atlantic Canada.

The transaction is part of Bell Canada’s purchase of the Canadian assets of 360networks, announced earlier today.

Call-Net’s acquisition price for the business customer base is expected to be approximately $15 million and will be paid in installments over a two-year period.

As part of the transaction, Call-Net has entered into a two-year transitional service agreement with Bell Canada who will provide technical and operational services to the newly acquired customer base and in exchange be paid approximately 70% of the total retail revenue.

In addition, Call-Net has entered into an option agreement with Bell Canada under which Call-Net will have four months to determine which CLEC network assets it may wish to acquire at the end of the transition service
agreement.

The CLEC assets include access to over 1,000 buildings.