Qwest Communications International Inc., Denver, CO, and Bestel SA de CV, Mexico, have reached an

Oct. 1, 1997

Qwest Communications International Inc., Denver, CO, and Bestel SA de CV, Mexico, have reached an agreement that allows Qwest to extend its fiber network to 14 major cities in Mexico. In return, Bestel will acquire Qwest`s Mexican subsidiary, SP Servicios, which owns conduit, railroad rights-of-way, and other assets in Mexico. Bestel, which is a joint venture of gst Mextel (which is owned by gst Global Telecommunications Inc.) and Odeltel SA de CV (which is owned by Grupo Varo) will also receive an undisclosed amount of cash. As part of the deal, Qwest will receive four dark fibers in a 2270-km network Bestel is constructing parallel to Mexico`s railway system. Qwest will connect the 13,000-mi fiber-optic network it is building in the United States to the new Mexican network at Nuevo Laredo, across the border from Laredo, TX. When completed in September 1998, Bestel`s network is expected to have the ability to offer service to 80% of Mexico`s population. The additional railroad rights-of-way acquired should allow it to increase the scope of the network to more than 5600 km in the future.

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