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The customer purchased fiberoptic cable separately, and Qwest or
the customer pulled the fiber through the conduit. The entire
conduit and fiber became the property of the customer once the
contract was completed.
In addition to installing conduit for its customers, Qwest
installed additional conduits for its own potential future use or
sale. The rail plow allowed Qwest to install multiple conduits
at the same time and at a relatively modest additional cost.
Generally, the only additional costs of adding the retained
conduits were the cost of the material, including the conduit and
hand holes, and the cost of handling that material. These costs
were mostly covered by profits from the third-party customer
contracts.
At the time of installation, Qwest did not have customers
lined up to purchase the retained conduit. With rare exception,
Qwest always kept at least one conduit for itself in connection
with all of its conduit projects.
Petitioners have conceded the adjustments to the MFS Los
Angeles, MFS Dallas, and MCI Dillard-Myrtle Creek projects. See
supra note 1. The nine conduit installation projects still in
issue, in chronological order, are: (1) MCI San Jose to Reno, and
Reno to Wells; (2) MCI Salt Lake City to Denver; (3) Viacom San
Francisco Bay; (4) MCI Denver to El Paso; (5) MCI Kansas City to
St. Louis; (6) US West Phoenix to Mesa; (7) MCImetro Dallas; (8)
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