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Technology Stocks : Qwest Communications (Q) (formerly QWST) -- Ignore unavailable to you. Want to Upgrade?

To: MangoBoy who wrote (2189)	9/14/1998 2:23:00 PM
From: Phil Jacobson	Read Replies (1) \| Respond to of 6846

Notes from the call: Announcements ---------------------- 1.ÿ Deployment of OC-48.ÿ To address a $20 billion IP services mkt by 2001-2.ÿ Series of services to be offerred over the platform - Corporate VPN to be focus, in process of defining SLA.ÿ Direct IP connectivity up to OC48. Q-Talk (IP over Net) product. 2.ÿ Acquired ICON CMT for $185 million in stock.ÿ Immediate leadership in professional svcs - integrated web solutions.ÿ 100 S&M people, 300 IP professionals.ÿ Blue chip customers. 3.ÿ Creation of National Accounts division.ÿ Sr. VP - Shaun Gilmore, key Nacchio guy from AT&T days.ÿ 100 employees, plus 80 more by year-end, 120 more by end of Q1.ÿ Total of 300 by end of Q1.ÿ IP services to be focus of National Accts. IP networking, hosting, National Accts - all of these are related to the advanced stage of the network build.ÿ Progress - 17,500 trench miles , 15,500 conduit in ground, 9,500 miles lit. Q&A ------- Q.ÿ Summarize what all this means about strategy. A.ÿ Growth strategy is fleshed out.ÿ Leadership position on converging networks, huge area of growth - high speed networks will be used for improved applications.ÿ Changing from bandwidth focus to application focus. "New way of creating services". Q.ÿ Why ICON?ÿ What are the benefits? A.ÿ Vertical market segmentation, helping industries convert existing data systems to IP.ÿ Nat'l Accts team will focus on vertical integration and sell ICON's services. Q.ÿ When will the IP VPN service be available and where? A.ÿ IP VPN service available in Q1 '99ÿ - 25 to 30 cities.ÿ Eventually 125 cities.ÿ Nacchio claims nobody else has an IP VPN service available.ÿ Says everyone else is ATM/ Frame. Q.ÿ Any additional acquisitions planned? A.ÿ ICON is not large enough to service whole USA.ÿ But QWST needs to sit back and look at current capabilities before moving into more companies. ICON isn't a classic ISP - it's a solutions company.ÿ Will continue to fill in the mosaic with additional skills and customer base. Q.ÿ Offering voice over Internet? A.ÿ QWST offers it today over current network.ÿ Flat rate price at 7.5 cents/min.ÿ Adding voice mail, speed dialing, calling card, audioconferencing.ÿ Works on switched lines or high speed pipes alike.ÿ Not mass marketed yet.ÿ More brand advertising on business side will be done first. Q.ÿ How many web hosting facilities, domestic/ int'l?ÿ What's the Int'l strategy?ÿ What is the OC-48 availability, and how much does it cost? A.ÿ ICON has two web hosting centers - one on each coast.ÿ QWST has facility in Denver (from Supernet).ÿ Europe has 14 small centers (from EU Net). International expansion plans - organic growth planned, plus partners, not saying more at this time.ÿ OC48 availability on all fiber - 9,000 miles today plus leased facilities as needed. Q.ÿ More on Asia strategy with regard to ICON? A.ÿ Qwest has involvement in US/Japan consortium for fiber route - 5% owner. ICON has position with Teleway in Japan.ÿ With lots of voice traffic in Japan w/ LCI, interesting possibilities to integrate that with Japan facilities through ICON. Q.ÿ What about pricing for OC48 services.ÿ Schedule? A.ÿ Pricing not done yet for OC48 services.ÿ End of '98 for IP voice cities in 125 cities. Wrap-up ----------- Very brief.ÿ Qwest will deliberately drive converging networks, and not just in the US.