Qwest's Long-Distance Arm Draws Bids Below Targets

Preliminary bids for Qwest's long-distance business are coming in well below the $2 billion to $3 billion it sought, leaving the telecommunications company with the choice of calling off the auction or accepting a significant discount. Some parties have valued Qwest's long-haul network -- which carries long-distance phone and data traffic and provides advanced services for corporate and government customers -- at under $1 billion. Among the most likely buyers for the network is Level 3 Communications, XO Communications, which is controlled by billionaire investor Carl Icahn, and TW Telecom. Qwest, the No. 3 U.S. phone company by subscribers, is shedding landline phone customers and doesn't have its own wireless network. It is delivering profits mainly through aggressive cost cutting.