Government's Intent To Up Tech Spending Will Help Few Firms Won't Be "Pot Of Gold' Analysts say fed dollars for most part will target pre-existing projects.(A)

Byline: REINHARDT KRAUSE

A sad chapter in Broadwing Inc.'s history is over, while a new tale is unfolding at investment venture Cequel III.

Broadwing on Tuesday sold 95% of its long-distance phone unit to C III Communications Inc. for $129 million in cash. It's a joint venture of Cequel and telecom gear maker Corvis Corp.

A venture capital firm backed by cable TV industry veteran Jerry Kent, Cequel III has acquired several other telecom assets since May. It seems to be targeting sectors undergoing consolidation, analysts say.

Broadwing, formerly local phone carrier Cincinnati Bell, bought money-losing IXC Communications Inc. for $2.2 billion …