DENVER, Feb. 14, 2005 ? Qwest Communications International Inc. (NYSE: Q) today announced it has signed a commercial agreement on wholesale pricing and services with AT&T. The agreement for Qwest Platform Plus (QPP) provides for wholesale pricing continuity for AT&T and a guarantee that such services will continue to be available consistent with AT&T?s market plans. For Qwest, the agreement will ensure that AT&T will continue to have its platform customers on the Qwest network.
Qwest is the leader in facilitating local service competition and negotiating commercial agreements with Competitive Local Exchange Carriers (CLECs). Qwest is the only incumbent local phone company to have reached agreement with the two major CLECs, AT&T and MCI. Qwest has commercially negotiated wholesale agreements with more than 60 CLECs, which collectively comprised 93 percent of its UNE-P lines.
?We are pleased to reach a commercially negotiated agreement for wholesale services with AT&T,? said Richard C. Notebaert, Qwest chairman and chief executive officer. ?Once again we?ve shown that two companies, without any regulatory assistance, can work out a deal that benefits customers.?
The agreement creates a reasonable transition period for wholesale prices through January 2007 and provides for incremental price adjustments at scheduled points within the transition period. To better reflect market conditions, the agreement includes a residential and business price split, which addresses the unique market needs of these very different customers and results in a smaller rate increase for serving residential customers in Qwest?s territory. Additionally, rates are geographically sensitive.
The agreement includes Qwest DSL services, as well as other services not previously available with a combined wholesale service under the UNE-P regime. These services provide AT&T with the opportunity to access new features and functionality at a discount ? specifically, Advanced Intelligent Network services and Qwest Voice Messaging services.
Qwest Communications International Inc. (NYSE: Q) is a leading provider of voice, video and data services. With more than 40,000 employees, Qwest is committed to the ?Spirit of Service? and providing world-class services that exceed customers? expectations for quality, value and reliability. For more information, please visit the Qwest Web site at www.qwest.com.
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: access line losses due to increased competition, including from technology substitution of our access lines with wireless and cable alternatives; 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 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; 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; potential fluctuations in quarterly results; volatility of our stock price; intense competition in the markets in which we compete including the likelihood of certain of our competitors emerging from bankruptcy court protection or otherwise reorganizing their capital structure and competing effectively against us; changes in demand for our products and services; 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.
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