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Qwest The Spirit of Service TM. Qwest Communications International Inc. Leading provider of internet, data and voice solutions to over 25 million customers 50,000 employees dedicated to the “Spirit of Service” Our philosophy places the customer at the forefront, delivering: Quality

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Qwest The Spirit of Service TM

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QwestThe Spirit of ServiceTM

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Qwest Communications International Inc.

  • Leading provider of internet, data and voice solutions to over 25 million customers

  • 50,000 employees dedicated to the “Spirit of Service”

  • Our philosophy places the customer at the forefront, delivering:

    • Quality

    • Reliability

    • Value

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Marketplace Priority Shift



Top Line Growth (revenue)

Bottom Line Growth (earnings)

Leveraged Growth

Total Cost Position

Core Focus/Simplicity

Internet at any Cost

Technology Business Model

Service Business Model

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Qwest Priority Shift



Global Footprint

Begin Re-entering LD Market

Expand Product Portfolio

Improve Service Levels

Intensify Service Focus

Finish Re-entering LD Market

Optimize Existing Platform

Provide Complete Solutions

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  • Leadership

  • Spirit of ServiceTM

  • Proven Network Technology

  • Comprehensive Solutions

The Qwest Business Model

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Proven Executive Leadership

  • Richard C. Notebaert, Chairman and Chief Executive Officer

    • Former President and CEO of Tellabs and Chairman and CEO of Ameritech

    • More than 30 years of telecom industry experience

  • Oren G. Shaffer, Vice Chairman and Chief Financial Officer

    • CFO of Ameritech after spending 25 years at Goodyear, where he was CFO and a member of the board of directors

  • Clifford S. Holtz, Executive Vice Pres. Business Markets Group

    • Focusing on business customers of all sizes; formerly responsible for national business accounts and previously with AT&T and Gateway

Dick Notebaert

Chairman & CEO

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Significant Issues Addressed

“We believe that management is executing well in it’s efforts to put the house in order.”

-Lehman Bros. 07/02

  • Fully-funded through 2005

  • Announced sale of QwestDex

  • Renegotiated Bank Facility

  • Raised $750M

  • Free Cash Flow Positive

  • Organizational Alignment

  • Improved Financial Disclosure

“Qwest keeps doing things right. Ever since Dick Notebaert arrived at Qwest, he has been approaching things in the no-nonsense, grownup way that so few executives have been willing to and it shows in a winning stock.”

TheStreet.com 11/20/02

“We believe Qwest can now comfortably meet all future debt obligations, and has available liquidity to buy in debt and continue to delever the balance sheet.”

--Goldman Sachs

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The Qwest Business Model

  • Leadership

  • Spirit of ServiceTM

  • Proven Network Technology

  • Comprehensive Solutions

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The Spirit of ServiceTM

“The Spirit of Service is our foundation rooted deeply in our heritage, and it is about all of us and the pride in who we are and where we are going.”

-Dick Notebaert in a message to Qwest Employees 7/23/02

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Work as a team

Put Customers first

The Spirit of ServiceTM

Build business profitably

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The Qwest Business Model

  • Leadership

  • Spirit of ServiceTM

  • Proven Network Technology

  • Comprehensive Solutions

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Qwest Long-Haul and Local


  • Qwest is the model of where the industry is going – a local network with nationwide connectivity.

  • Qwest has a unique collection of local and long-haul assets with the ability to serve a broad range of customers, from residential consumers to Fortune 500 businesses.

  • Qwest has received approval to provide LD services in 9 states, providing these customers with a complete telecom services bundle. Anticipated filings in other 5 states in the first half of 2003.

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Qwest Network Facts

  • OC-192 Backbone

  • Over 2 million fiber miles

  • Qwest’s network completes 240 million calls and 600 million emails per day

  • Transports 4 billion Megabits at any given time

  • Industry-leading SLAs

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The Qwest Business Model

  • Leadership

  • Spirit of ServiceTM

  • Proven Network Technology

  • Comprehensive Solutions

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Comprehensive Solutions

Voice Solutions

Data Solutions

Internet Solutions

Managed Solutions

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Business Function

Qwest Solution

Voice Solutions

  • Local Phone Service

  • State to State Long Distance (Out of Region)

  • Toll Free and International Toll Free

  • Calling Cards

  • Audio Conferencing

  • Telephony and Convergence Equipment

  • Network IVR and Speech Recognition

  • Call Center Services

  • Voice over IP

  • Hardware and Software installation and maintenance

  • Out bound sales calls

  • Toll free customer service support

  • Intra-company communication

  • Traveling employee calls

  • Local phone listings and daily communications needs

  • Contact Center

  • Legacy technology updates

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Application to be filed in early 2003

Approval granted to sell Switched LD under QLDC

Approval granted, but not currently able to sell Switched services

Application filed with FCC on January 15, 2003

Long Distance Re-Entry

Customer Benefits:

-Packaged offerings

-Cost efficiencies

-Competitive LD Rates

-Increased competition in the marketplace

-Single Point of Contact for your LD needs

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Business Function

Qwest Solution

Data Solutions

  • Wide Area Networking

  • Network Design & Consulting

  • Intra company communication

  • Converged Networks

  • Frame Relay

  • ATM

  • Private Line

  • Data Equipment

  • Network Management

  • Data CPE and Installation / Maintenance

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Cyber CenterTM facilities




IP Access

Net Mgmt.



Managed Firewall






Internet Solutions

Business Function

  • Customer interface via the Internet

  • Remote WAN connectivity

  • 24X7 Equipment Support

  • Access to the secured IP services for data transmission

Qwest Solution

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Managed Solutions

Comprehensive services developed to follow a “design, build and run” approach for Complex Solutions

  • Professional Services

    • - Network Consulting& Integration

    • - Security Services

    • - Custom Hosting Services

Network Management


Packaged Transport

& CPE Solutions

Hosting Services

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Qwest TotalAdvantageTM

  • Provides medium and large business customers with discounts for term and volume purchases with Qwest: The more you buy, the more you can save

  • Encompasses Qwest local, long-distance and IP services, where available

  • Provides significant cost benefits on domestic and international long-distance and IP services purchased from Qwest

  • Enables scalability across various technologies to meet any customer need

  • Singe point of contact for customers’ communications needs

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Integrated Services Portfolio

Internet Services

Dial-up to OC-x



Internet Solutions

Managed Solutions

Hardware & Software



Next Generation Internet






Frame Relay

Enhanced Voice


(Long Distance)

Internet Solutions

Voice Solutions

Data Services,

Private Line

Data Solutions

Broadband Solutions

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The Qwest Business Model


Comprehensive Solutions

Spirit of ServiceTM

Proven Network Technology

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Qwest cannot provide interLATA long distance service originating, interLATA 8XX service terminating; or interLATA private line or data circuits with either end in the states of AZ, CO, IA, ID, MN, MT, ND, NE, NM, OR, SD, UT, WA and WY. Qwest provides Internet services in these states in conjunction with a separately billed, required Global Service Provider (GSP).

Qwest Control 4.0: Customers in the states of AZ, CO, IA, ID,MN, MT, NE, NM, ND, OR, SD, UT, WA and WY may use Qwest Control only for Qwest® Business Dial, DIA, Dedicated Hosting, Managed Firewall, and Network VPN services at this time. Customers in all other states may use Qwest Control to manage a broad range of Qwest services, including ATM, Business Dial, DIA, Dedicated Hosting, Frame Relay, Managed Firewall VPN, Network VPN, Toll-free, VNS, and Calling Card.

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This release may contain projections and other forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by us with the Securities and Exchange Commission, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including but not limited to: the duration and extent of the current economic downturn in our 14-state local service area, including its effect on our customers and suppliers; the effects of our anticipated restatement of historical financial statements including delays in or restrictions on our ability to access the capital markets or other adverse effects to our business and financial position; our substantial indebtedness, and our inability to complete any efforts to de-lever our balance sheet through asset sales or other transactions; any adverse outcome of the SEC's current investigation into our accounting policies, practices and procedures; any adverse outcome of the current investigation by the U.S. Attorney's office in Denver into certain matters relating to us; adverse results of increased review and scrutiny by Congress, regulatory authorities, media and others (including any internal analyses) of financial reporting issues and practices or otherwise; the failure of our chief executive and chief financial officers to provide certain certifications relating to certain public filings; rapid and significant changes in technology and markets; any adverse developments in commercial disputes or legal proceedings, including any adverse outcome of current or future legal proceedings related to matters that are the subject of governmental investigations, and, to the extent not covered by insurance, if any, our inability to satisfy any resulting obligations from funds available to us, if any; our future ability to provide interLATA services within our 14-state local service area; potential fluctuations in quarterly results; volatility of our stock price; intense competition in the markets in which we compete; changes in demand for our products and services; dependence on new product development and acceleration of the deployment of advanced new services, such as broadband data, wireless and video services, which could require substantial expenditure of financial and other resources in excess of contemplated levels; higher than anticipated employee levels, capital expenditures and operating expenses; adverse changes in the regulatory or legislative environment affecting our business; and changes in the outcome of future events from the assumed outcome included in our significant accounting policies.

The information contained in this release is a statement of Qwest's present intention, belief or expectation and is based upon, among other things, the existing regulatory environment, industry conditions, market conditions and prices, the economy in general and Qwest's assumptions. Qwest may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in Qwest's assumptions or otherwise. The cautionary statements contained or referred to in this release should be considered in connection with any subsequent written or oral forward-looking statements that Qwest or persons acting on its behalf may issue. This release may include analysts' estimates and other information prepared by third parties for which Qwest assumes no responsibility.

Qwest undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

By including any information in this release, Qwest does not necessarily acknowledge that disclosure of such information is required by applicable law or that the information is material.

The Qwest logo is a registered trademark of, and CyberCenter is a service mark of, Qwest Communications International Inc. in the U.S. and certain other countries.

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Thank you

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Optional Slides

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Private Line

Qwest Data Services offer customers scalable, reliable and secure dedicated bandwidth, domestically and internationally that is priced competitively and that utilizes leading edge and widely available synchronous optical network (SONET) and dense wave division multiplexing (DWDM) network technology.

  • Scalable, reliable and secure

    • Robust offering

    • Aggressive pricing

    • Industry-leading SLAs

  • Fast provisioning

    • Meeting customer needs

    • Install guarantees

  • Leading-edge network technology

    • Network monitoring and management

    • SONET and DWDM technology

  • Unregulated (34-states) Products by Name

  • Domestic Private Line - DS0, DS1, DS3, OCN

  • Qwave - 2.5G and 10G

  • Protected Wavelength Service (including Fractional Wavelength Service)

  • Regulated (14-states) Products by Name

  • Metro Private Line - Analog, DDS, DS1, DS3, OCN

  • SHNS - Self Healing Network Service

  • SST - Synchronous Service Transport

  • GeoMax

  • Unregulated (34-states) Products by Name

  • Metro Private Line - DS1, DS3, OCN

  • Local Access - Leased to match bandwidth of long haul service being purchased

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Qwest Dedicated Hosting Value Proposition

  • Superior Network

  • OC-48/192 IP network today with practically unlimited expansion capability

  • MPLS Fast Re-route allowing the IP network to re-route in 100 Ms

  • Installation of fastest and most reliable router technology today

  • High network performance (e.g., availability, latency and reporting)

  • 100% availability SLA

  • 65 Ms latency On Network IR

  • 50 Ms latency On Network OOR

  • 95 Ms latency Off Network

  • World Class CyberCentersTM Facilities

  • Connected at OC-48/192 speeds to the Qwest network*

  • Completely redundant CyberCenterfacility switch design

  • Gigabit Ethernet connectivity

  • Highly scalable and secure

  • 24/7 highly skilled operations staff

  • World-class centralized monitoring and management

  • Multiple geographic locations

  • Wide Range of Leading Hosting

  • Products and Services

  • Comprehensive solutions including hardware, software, communications, and Professional Services

  • Suite of hosting services for diverse customer needs

  • 99.5 or 99.95% uptime guarantee

For access to a server hosted in a Qwest CyberCenterTM facility located within the states of CO and WA, Qwest Internet services are provided in conjunction with a separate, required Global Service Provider (GSP) that will supply connectivity to the global Internet. When Qwest receives regulatory relief, it will offer this service without the use of a GSP.

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