Upstart telecom carrier McLeodUSA announced Wednesday that it has renewed a service deal with Internet service provider Prodigy Communications. In a multimillion-dollar agreement that will span three years, McLeod will provide Internet access to Prodigy's dial-up and DSL (digital subscriber line) customers not already served by Prodigy's other carrier, SBC Communications, which operates a network in 13 Midwestern states.
McLeod operates a nationwide telecom network and provides local telephone service in 25 states. The company is also one of the few new carriers left standing after the rush of start-ups that flooded the market with the passing of the Telecommunications Act of 1996. For the quarter ended in June, McLeod posted $474 million in revenue and an operating loss of $156 million. That compares with revenue of $332 million and an operating loss of $101 million for the same quarter a year ago.