Qwest and U S WEST Reach Agreement with Minnesota Regulators on Merger Terms

Qwest Communications International Inc. and U S WEST, Inc. have reached an agreement with the Minnesota Department of Commerce and the Minnesota Office of the Attorney General on key service, competition, and investment issues prior to their planned merger. The agreement ensures continued investment in Minnesota's telecommunications network, improved service, and the deployment of advanced broadband services to the state's customers. The companies aim to create a new, merged entity that will serve as a high-tech leader in Minnesota, with commitments to increase investments in the network, deploy advanced broadband services to at least 13 cities, and maintain quality standards for services provided to wholesale customers.

Key Takeaways:

• The agreement commits Qwest and U S WEST to increased investments in the network, network technicians, and call center employees by $40 million annually over four years, improving service for Minnesota customers.
• The companies will deploy advanced broadband services to at least 13 Minnesota cities outside of Minneapolis/St. Paul.
• Quality standards for services provided by the combined company to wholesale customers will be maintained.
• The new company will invest in proactively preparing telecommunications lines in Minnesota for high-speed internet and other advanced broadband services.
• The combined company will continue to commit to serving Minnesota customers, backed by penalties if the new company doesn't meet wholesale service standards over two years and additional penalties for failure to comply with existing retail standards.

Statistics:

• Increased investments in the network, network technicians, and call center employees: $40 million annually over four years.
• Deployment of advanced broadband services to at least 13 Minnesota cities outside Minneapolis/St. Paul.
• Quality standards for services provided by the combined company to wholesale customers: to be maintained.
• Total miles of deployed fiber in the U.S. and worldwide: over 35,300 miles (Qwest Macro Capacity(R) Fiber Network and KPNQwest').
• Total customers: over 29 million.
• Local network digitally switched: 99.2%.
• Employees worldwide: approximately 64,000.

Sources:

• Qwest Communications International Inc. Press Release, April 14 /PRNewswire/.
• 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.
• About U S WEST U S WEST (NYSE: USW) is a leading broadband and communications service provider, with more than $13 billion in annual revenues.