Qwest Communications International said Monday it will acquire OnFiber Communications, a provider of Ethernet and wide-area network solutions, for $107 million.

The transaction, which Qwest said it expects to close on in the third quarter, will widen Qwest's national footprint. Currently, the former Regional Bell Operating Company (RBOC) is the dominant telecom company in its 14-state operating region.

"We expect the Ethernet market will grow upwards of 50 percent annually," said Tom Richards, Qwest executive vice president, business markets group, in a statement. "For Qwest, this expands our penetration in key markets throughout the country while reducing last-mile costs."

Operating an all-optical network in 23 metropolitan areas, the Austin, Texas-based OnFiber delivers fiber technologies to large business and government customers in 23 metropolitan areas.

Qwest said OnFiber anticipates posting revenues of nearly $60 million this year.