Sprint Corporation and Subsidiaries, f.k.a. United Telecommunications, Inc. - Page 12

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          another, but the programming of a switch in one location                    
          generally cannot be used on a switch of the same type in another            
          location.                                                                   
               Digital Switch Acquisitions (1982-85)--Generally                       
               The particular design of the digital switches acquired by              
          Sprint during the years in issue varied from manufacturer to                
          manufacturer and from model to model.  However, the facts                   
          relating to the DMS-100, manufactured by NTI, including its                 
          acquisition and software, are representative of the purchases in            
          issue.                                                                      
               Although there were many design configurations and                     
          software/firmware combinations, none of that concerned                      
          petitioner, which was interested in a turnkey switch; that is,              
          Sprint desired that the vendor would engineer, furnish, install,            
          and prepare a complete switch for service.  Sprint's primary                
          purpose in the procurement process was to determine which                   
          manufacturer could satisfy petitioner's requirements for the                
          lowest price.  Based on those criteria, Sprint selected a                   
          manufacturer and negotiated a final price.                                  
               Once an agreement was reached, a software load for the                 
          switch was developed by the manufacturer, NTI in this instance.             
          First, NTI technicians reviewed Sprint's order to ascertain the             
          number of lines and trunks and the types of desired features and            
          prepared a written plan or blueprint to be used in compiling the            
          software load.  The software load was then made by downloading a            




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