Qwest Communications Applauds Federal Regulatory Relief Over Reciprocal Compensation

DENVER, April 19, 2001 ? Qwest Communications International Inc., (NYSE: Q) the broadband Internet communications company, today applauded the Federal Communications Commission?s decision to begin closing a costly loophole in the Telecommunications Act of 1996.

Today?s action by the FCC marks the beginning of a process that will change the way telecommunications companies compensate each other for terminating calls on each other?s networks, reducing the rate of reciprocal compensation paid.

?We?re pleased with the action taken by the FCC today,? said Steve Davis, Qwest senior vice president for policy and law. ?This is the beginning of the end of a costly loophole that benefited a few companies at the expense of millions of consumers.?

Reciprocal compensation allows a communications company to be paid for terminating calls that originate on another company?s network. In most cases, traffic flows in relatively equal volumes between different carrier?s networks. In recent years however, some companies have gamed the system by recruiting ISPs who generate huge volumes of one-way traffic ? pocketing millions of dollars in reciprocal compensation.

Davis said Qwest agrees with the FCC?s conclusion that reciprocal compensation ?created opportunities for regulatory arbitrage and distorted market incentives.? The action announced today in Washington, D.C. is the beginning of an incremental three-step process set to providing relief to communications companies over twenty-four months. It reinforces earlier decisions by the Colorado Public Utilities Commission and the Iowa Public Utilities Board, which have ruled against reciprocal compensation for Internet bound traffic.

About Qwest

Qwest Communications International Inc. (NYSE: Q) is a leader in reliable, scalable and secure broadband Internet-based data, voice and image communications for businesses and consumers. The Qwest Macro Capacity® Fiber Network, designed with the newest optical networking equipment for speed and efficiency, spans more than 106,000 miles globally. For more information, please visit the Qwest web site at www.qwest.com.

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