Anschutz Company and Subsidiaries - Page 8

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               After the conduit was buried along a railroad track or other           
          right-of-way, or attached to a bridge or tunnel, Qwest could                
          pull fiber through the conduit using hand holes.                            
                    2.   The Coast Route Project                                      
               In December 1988, Qwest began its first conduit installation           
          project along the Coast Route, a route running from Los Angeles             
          to San Francisco.  Qwest acted primarily as a general contractor            
          and subcontracted out most of the construction work to third                
          parties.  The Coast Route project was performed for several long-           
          distance carriers, including AT&T, Sprint, WilTel, and MCI.  All            
          of the Coast Route customers did not purchase conduit along the             
          entire route, and each customer’s fiberoptic cable was pulled               
          only through the portions of the conduit purchased by that                  
          customer.  However, Qwest laid multiple conduits along the entire           
          route for its own potential future use or sale.  Up to this                 
          point, installations of multiple conduits had not been done in              
          the telecommunications industry.                                            
               As a result of the project, Qwest obtained several                     
          unconnected segments of empty conduit along the Coast Route.                
          From the long-distance carriers, Qwest received cash compensation           
          and capacity in the form of 18 DS-3s along MCI’s fiberoptic                 
          cable.  Qwest offered the DS-3 capacity as a wholesale                      
          opportunity to long-distance carriers.                                      







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Last modified: May 25, 2011