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Cliff Dinwiddie Wholesale Business Management Global Wholesale Markets Qwest Communications

Commercial Line Sharing Agreement A “win-win” solution for Qwest and CLECs .

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Cliff Dinwiddie Wholesale Business Management Global Wholesale Markets Qwest Communications

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  1. Commercial Line Sharing AgreementA “win-win” solution for Qwest and CLECs. Beginning 07/12/04, Qwest Communications (QC) will make widely available to all interested CLECs a commercial line sharing agreement and product. This product will allow data-only CLECs (DLECs) to cross connect their collocated DSLAM into a QC retail POTS service. This document is intended to be a high-level information resource only. The specific rates, terms and conditions associated with this product can be found in the contract amendment and Commercial Line Sharing Agreement documents. Cliff Dinwiddie Wholesale Business Management Global Wholesale Markets Qwest Communications 303-896-7846

  2. BackgroundQC’s Wholesale DSL Value Proposition Continues To Improve • On December 13, 2003, the tariffed rates for Qwest DSLTM decreased significantly.  This means an even better value proposition for CLECs/Resellers when the lower tariffed rates are combined with the discounts that Qwest makes available to its CLEC/Reseller partners.  • Effective December 18, 2003, Qwest began offering a recurring discount equal to your Wholesale (“Resale”) Advanced Communications Service (ACS) discount on Qwest DSLTM service to CLECs interested in purchasing Qwest DSLTM on UNE-P POTS. This exciting offer allows unbundled element network platform (UNE-P) CLECs to receive a discount equal to the Resale discount on the tariffed monthly recurring charges associated with Qwest DSL for your UNE-P end users. • On February 7, 2004, Qwest launched Qwest Choice DSL Deluxe, a new DSL product that includes downstream speeds of up to 1.5Mbps and upstream speeds of up to 1Mbps. • This offering allows CLECs/Resellers to offer a broadband Internet access product that includes bandwidth comparable to cable modem, at a much lower price point.

  3. Background (cont’d) QC’s Wholesale DSL Value Proposition Continues To Improve • Effective February 28, 2004, Qwest began offering Qwest DSLTM service via Resale without requiring an underlying local exchange voice service. CLECs/Resellers are no longer required to market, sell and bill for voice services and can now “laser focus” on the broadband Internet access market. • A perfect fit for the growing wireless replacement voice market. These tech-savvy end users often require an always-on broadband Internet access solution. • In addition to Qwest’s compelling offers on the DSL line, Actiontec and Qwest have agreed to partner to offer CLECs/Resellers an end-to-end solution that includes DSL modem purchase and fulfillment.Actiontec and Qwest agree that our collective scale and experience could be a tremendous benefit to you. Together, we’ve worked to design DSL modem solutions that include: • Preferred modem pricing supporting your profitable and competitive position. • Fully customized, nationwide modem fulfillment and compatibility that offers you a single source for modems that easily integrate into the nation’s largest DSL networks. • Custom modem configuration that allows your business to select CPE products that best fit your end user’s profile. • On July 12, 2004, QC will make widely available to all interested CLECs a commercial line sharing agreement and product. This product will allow data-only CLECs (DLECs) to cross connect their collocated DSLAM into a QC retail POTS service.

  4. Agreement Key Terms Ability to order new Line Sharing through 2007 • Four-year agreement beginning October 2, 2003. • First Year of Agreement is covered by an ICA amendment and covers orders placed between October 2, 2003 to October 1, 2004. • Orders placed between October 2, 2004, through October 1, 2007 are covered in separate Commercial Agreement. • Qwest will accept orders for new Line Shared loops through October 1, 2007. The Triennial Review Order (TRO) only required New Line Shared loops to be provided through October 1, 2004. • All Line Sharing Arrangements in service prior to October 2, 2003 remain grandfathered under the terms of the TRO and will be governed by your current ICA and are not impacted by the Commercial Agreement. • The Grandfathered Lines may be converted to the terms and conditions of the Commercial Agreement for an additional charge. • PID and PAP will continue on all Line Sharing Services through October 1, 2004, as Qwest has a requirement to continue to offer Line Sharing through October 1, 2004, as a §251 UNE. In exchange for a one-time credit paid to the CLEC, PID and Tier 1 PAP will cease for all CLEC Line Sharing Arrangements grandfathered and new Arrangements • The Commercial Line Sharing Amendment will be filed with the Commissions for their approval. • The Commercial Line Sharing Agreement will be provided to the Commissions for their information since it is not a 251 or 271 requirement. • Effective 10/2/2004 Commercial Line Sharing Arrangements are not eligible for CMP participation.

  5. Pricing • Rates for all Line Shared loops installed between October 2, 2003, and October 1, 2004, will be billed at the current October 1, 2003, state ICA rate through October 1, 2004. • Subsequent annual rates for the Shared Loop, per loop charge, between $5.00 and $8.00 per line per month, will be set based upon the net number of loops installed the previous 12 months. Specific details of the volume based rates may be found in the ICA Amendment and Commercial Agreement. • The subsequent rate will apply to all new and embedded Commercial Shared Loops (those acquired on or after October 2, 2003) for the full following 12 months. All rates will be re-calculated annually based upon the installed volume from the previous year. • Operation Support Systems (OSS) and Conditioning up to 5% of the net installed lines per year will be included in the monthly Shared Loop, per Line recurring charge.

  6. Web Document Resources • The Commercial Line Sharing Agreement can be found on Qwest’s web site at: • http://www.qwest.com/wholesale/clecs/negotiations.html • (Follow the “Commercial Agreements” Quick Link.) • The Commercial Line Sharing ICA Amendment can be found on Qwest’s web site at: • http://www.qwest.com/wholesale/clecs/amendments.html

  7. How to Get Started • Review generic agreements online for terms and conditions. • Contact your Wholesale Sales representative to have the agreements prepared and distributed. • You will need to execute both a Commercial Line Sharing Amendment, covering those Line Shared loops installed between October 2, 2003, and October 1, 2004, and a Commercial Line Sharing Agreement, covering those Line Shared loops installed after October 1, 2004.

  8. Obtaining Additional Information Contacts: • Your Qwest Wholesale Sales representative is prepared to address general questions and requests for the preparation of amendment and commercial agreement templates. • Wholesale Channel Management Contact: Cliff Dinwiddie cdinwid@qwest.com 303-896-7846

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