Qwest Communications Applauds Federal Regulatory Relief Over Reciprocal Compensation

Apr 19, 2001, 01:00 ET from Qwest Communications International Inc.

    DENVER, April 19 /PRNewswire/ -- 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(R)
 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.
 
     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 Qwest 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 potential fluctuations in quarterly results, volatility
 of Qwest's stock price, intense competition in the communications services
 market, changes in demand for Qwest's products and services, dependence on new
 product development and 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, rapid and significant changes in
 technology and markets, adverse changes in the regulatory or legislative
 environment affecting Qwest's business and delays in Qwest's ability to
 provide interLATA services within its 14-state local service territory,
 failure to maintain rights of way, and failure to achieve the projected
 synergies and financial results expected to result from the acquisition of U S
 WEST timely or at all and difficulties in combining the operations of Qwest
 and U S WEST.  This release may include analysts' estimates and other
 information prepared by third parties for which Qwest assumes no
 responsibility.  Qwest undertakes no obligation to review or confirm analysts'
 expectations or estimates or to release publicly any revisions to any forward-
 looking statements to reflect events or circumstances after the date hereof or
 to reflect the occurrence of unanticipated events.
 
     The Qwest logo is a registered trademark of, and CyberCenter is a service
 mark of, Qwest Communications International Inc. in the U.S. and certain other
 countries.
 
 

SOURCE Qwest Communications International Inc.
    DENVER, April 19 /PRNewswire/ -- 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(R)
 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.
 
     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 Qwest 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 potential fluctuations in quarterly results, volatility
 of Qwest's stock price, intense competition in the communications services
 market, changes in demand for Qwest's products and services, dependence on new
 product development and 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, rapid and significant changes in
 technology and markets, adverse changes in the regulatory or legislative
 environment affecting Qwest's business and delays in Qwest's ability to
 provide interLATA services within its 14-state local service territory,
 failure to maintain rights of way, and failure to achieve the projected
 synergies and financial results expected to result from the acquisition of U S
 WEST timely or at all and difficulties in combining the operations of Qwest
 and U S WEST.  This release may include analysts' estimates and other
 information prepared by third parties for which Qwest assumes no
 responsibility.  Qwest undertakes no obligation to review or confirm analysts'
 expectations or estimates or to release publicly any revisions to any forward-
 looking statements to reflect events or circumstances after the date hereof or
 to reflect the occurrence of unanticipated events.
 
     The Qwest logo is a registered trademark of, and CyberCenter is a service
 mark of, Qwest Communications International Inc. in the U.S. and certain other
 countries.
 
 SOURCE  Qwest Communications International Inc.