for C$55 million (US$37 million) in cash, marking the company's first step into the Canadian telecommunications market.

RSL bought Westel from British Columbia Railway Co., a British Columbia government corporation that launched Westel in 1993. Westel, a long distance and data communications company based in Vancouver, currently has about 38,000 business and residential customers in British Columbia.

RSL, which provides long-distance and Internet-based services in 19 countries, will use Westel to expand its reach across Canada. RSL said it hopes to take advantage of deregulation in the Canadian international long-distance market, which is scheduled to take place in October. -- Bloomberg