Level 3 to Sell Network Space to Nextel

Level 3 Communications Inc. of Omaha agreed to sell capacity on its nationwide fiber-optic network to Nextel Communications Inc. and other affiliates of entrepreneur Craig McCaw for $700 million. The investment will help Level 3 pay for the $2.2-billion, 15,000-mile network, which it plans to have operating by 2001. Level 3 also declared a 2-for-1 split of its shares, whose price has more than doubled this year. Internext, which is owned by wireless company Nextel, local phone company Nextlink Communications Inc., and McCaw’s Eagle River Investments, will buy 24 fibers, or a quarter of the capacity, to meet demand for mushrooming phone traffic. Nextel, Nextlink and Eagle River will split the $700-million fee equally, Nextlink said. Level 3 shares rose $5 to close at $76.75 on Nasdaq.