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To: Curtis Gruber who wrote (4535)	5/11/1999 1:04:00 AM
From: Curtis Gruber	Read Replies (4) \| Respond to of 5650

David, what would make a company team up with QWST on a deal like this as opposed to Psinet? Can't we offer basically the same services? news.com Of course I know that we have different assets than QWST, and they are bigger(with much more debt I might add), but aside from that(which I guess is just about everything), aren't we a direct competitor with them? thanks again, cg

To: Curtis Gruber who wrote (4535)	5/11/1999 9:30:00 AM
From: David N. Kunkel	Read Replies (1) \| Respond to of 5650

Dear Curtis, Well, you've spotted a good topic. There are some phonecos out there, like Coastal, who provide services to businesses. They could well be complementary to PSINet. The theory is that we could sell into their established customer base, be the "one stop" for voice and data. The question is compounded, though, when one reads stats about the efficacy of the bundling model. Some believe in it, some don't. In other words, if you're a business, do you really believe that the telco can be your (best, since it's a mission-critical service) IP/data/VOIP provider? MCI/Worldcom believe in the bundling approach. We've thought about it. The "Street" gets a little nervous at the thought that a "pure play ISP" could become a phoneco (with its inherent lower multiples). Food for thought. Hope this helps. Best, Dave Kunkel