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Qwest Net@EDU Broadband Pricing Working Group Seattle, WA June 24-25, 2003

Qwest Net@EDU Broadband Pricing Working Group Seattle, WA June 24-25, 2003. “Telecom Post-Bust Strategies”. Debbie Montano Director, Advanced Internet Initiatives Government & Education Solutions Qwest debbie.montano@qwest.com 303-992-4091. “Telecom Post-Bust Strategies”.

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Qwest Net@EDU Broadband Pricing Working Group Seattle, WA June 24-25, 2003

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  1. QwestNet@EDU Broadband Pricing Working GroupSeattle, WAJune 24-25, 2003

  2. “Telecom Post-Bust Strategies” Debbie Montano Director, Advanced Internet Initiatives Government & Education Solutions Qwest debbie.montano@qwest.com 303-992-4091

  3. “Telecom Post-Bust Strategies” • There has been a shift in strategy. • Qwest is still here and going strong! • Not post bust for everyone yet.

  4. Qwest at a Glance • 50,000 employees • 25 million customers • 1 million wireless customers • 551,000 DSL customers • 240 million calls transmitted across network daily • 600 million e-mails transmitted across network daily • Approximately 16.9 million access lines • More than 180,000 miles of fiber optic network capacity

  5. Marketplace Priority Shift THEN NOW Top Line Growth (revenue) Bottom Line Growth (earnings) Total Cost Position Leveraged Growth Core Focus/Simplicity Internet at any Cost Service Business Model Technology Business Model

  6. Qwest Priority Shift NOW THEN Global Footprint Intensify Service Focus Finish Re-entering LD Market Begin Re-entering LD Market Optimize Existing Platform Expand Product Portfolio Improve Service Levels Provide Complete Solutions

  7. Qwest Priority Shift NOW THEN If we build it, they will come. If it is profitable, we will build it.

  8. Qwest Priority Shift NOW THEN “Ride the Light” “Spirit of Service”

  9. Qwest Improved Financial Position • First quarter (Q1) 2003, Qwest had… • net income: $150 million • diluted earnings per share: $0.09 • revenue: $3.63 billion • operating expense (cost of sales & SG&A) decreased $233 million, or 8.1%, year-over-year. • Strengthened the balance sheet • new $1.75 billion loan, June 2003 (at low interest rate) • reduced principle borrowings by ~$2.2 billion from debt exchanges • expecting $7.1 billion from Qwest Dex sale (phases 1 & 2)

  10. Qwest Long Distance Re-entry Status Goal: Re-entry in 14 local service states by mid-2003 * One Million Long Distance Lines – as of today!

  11. Qwest Long Distance Re-entry Status • Qwest Long Distance Corp (QDLC) approved (has 271 relief) in 12 of the 14 states • QLDC does voice long distance only. • In Q1, Qwest signed up 530,000 lines/customers. • Filed in Minnesota, Mar 28, 2003 (decision June 26) • Will file in Arizona soon. • Qwest will get “full” 271 relief once we complete restatement of prior year financials • Then 271 relief will be almost immediate in approved states. • Expected end-of-summer/early fall • Then can offer Internet at Quilt pricing in-region.

  12. Touch America – new developments • Touch America – just filed for chapter 11 last week. • Qwest announced settlement with TA this week • Will be ensuring continued operation/smooth transition • Will be acquiring some TA fiber assets (don’t know exactly where yet).

  13. Leadership • Spirit of ServiceTM • Proven Network Technology • Comprehensive Solutions The Qwest Business Model

  14. Leadership • New Leadership – Dick Notebaert • Leadership to continue to improve Qwest’s financial position • Leadership to focus on the right things. • Leadership to continue to navigate Qwest out of rough waters.

  15. The Qwest Business Model • Leadership • Spirit of ServiceTM • Proven Network Technology • Comprehensive Solutions

  16. Work as a team Put Customers first The Spirit of ServiceTM Build business profitably

  17. The Qwest Business Model • Leadership • Spirit of ServiceTM • Proven Network Technology • Comprehensive Solutions

  18. Qwest Long-Haul and Local Network

  19. Qwest QWave™ Network Footprint QWave service is not available in the states of AZ, MN, MT, NM, OR and SD until Qwest receives regulatory authorization to provide interLATA services in these states. Local loop is required and can be supplied by Qwest or a third party at an additional charge.

  20. The Qwest Business Model • Leadership • Spirit of ServiceTM • Proven Network Technology • Comprehensive Solutions

  21. Solutions • Services! Solutions! – not technologies. • Partner to create solution, and provide new advanced technologies, needed by customers. • Be flexible, creative, open, efficient • Work together

  22. Solutions • WAN Strategy • Solutions, not technology… • GigE – Internet & Access • OnFiber; Metro Optical Ethernet • LAN Switching Service; GeoMAX • Next Gen Optics – ideas to lower costs… • Ultra Long Haul • Optical Switching • Tuneable Optics…

  23. The Qwest Business Model Leadership Comprehensive Solutions Spirit of ServiceTM Proven Network Technology

  24. Thank you

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