Qwest in December offered $300 million in cash for Allegiance network assets in 36 markets. But XO Communications Inc. offered a winning bid of $311 million cash and roughly 45.38 million shares of XO common stock for Allegiance -- an offer valued at $628 million.
Notebaert told reporters at the Denver Press Club he felt good about not trying to outdo a bid that came just before 5 a.m. last Friday. He said the offer was one "that we don't know how you can make money at."
"That was very frustrating," Notebaert said Monday. He added later, "We could have created great value together."
XO's purchase must still be approved in bankruptcy court.
Meanwhile, Qwest will start offering wireless service on Sprint's national network in March, offering camera and video phones. The Sprint deal eventually will allow Qwest to sell of its own wireless network, which is limited by comparison.
Qwest also plans to soon offer high-speed Internet service to customers for $33 a month, without also requiring them to have local phone service with the company, Notebaert said.
So far, Comcast, which offers its own competing broadband service via cable, has refused to run Qwest ads touting the a la carte DSL service, Notebaert said.
He said he has talked to each FCC commissioner about it, arguing that cable television, just like broadcast networks, should not be able to turn down ads.
"It's a shock to us that this continues to go on," Notebaert said.
Comcast does carry other ads for services that compete with Comcast's own services, Comcast Spotlight marketing manager Dana Runnells said.
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