Time Warner Snaps Up CLEC GST Telecommunications

BOSTON (05/17/2000) - Time Warner Inc. is benefiting from the dog-eat-dog of local telecom competition, snapping up bankrupt GST Telecommunications Corp. for $450 million.

With the deal announced Wednesday, Time Warner gets GST's fiber backbone that is powered by Nortel ATM switches.

The company sells its services in an eight-state region of the western United States: Arizona, California, Hawaii, Idaho, New Mexico, Oregon, Texas and Washington.

GST says it had to file for bankruptcy because of "escalating cash flow problems, a substantial debt load, and an inability to secure other financing."

Time Warner says it wants GST's network, employees and customers.

GST offers businesses bundles of local, long distance, frame relay networking and Internet access services, typically delivered over a single T-1 circuit.

The carrier also offers frame relay networking at up to T-1 speeds, and sells the service as a virtual private network. It also sells dialup as well as dedicated Internet access.

In addition, GST offers DS-1 to DS-3 point-to-point connections, as well as OC-3 to OC-48 point-to-point connections over fiber links.

The company was founded in 1994.