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E. Other Projects Before the Years in Issue
On March 14, 1991, Qwest purchased an installed conduit
system from MCI involving the Union Pacific right-of-way from
Wells, Nevada, to Salt Lake City, Utah.
On September 30, 1991, Qwest entered into an easement
agreement with Southern Pacific. The agreement gave Qwest a
nonexclusive easement along Southern Pacific’s rights-of-way for
the construction and operation of fiberoptic conduit systems.
Qwest also entered into additional easement agreements with other
railroads and parties both before and during the years in issue.
III. Qwest’s Operations During the Years in Issue
A. Qwest’s Five-Year Plans
During the years in issue, documents titled “five-year
plans” were authored within Qwest. The five-year plan for 1995
through 1999 (the 1995 five-year plan) stated “The primary
business focus of [Qwest] is to create a nationwide, owned,
facility based network and utilize it to carry profitable,
revenue traffic.” The 1995 five-year plan also stated that Qwest
would build 6,617 miles of fiberoptic conduit for its own use and
15,502 miles for sale to third-party customers. The 1995 five-
year plan estimated that, if the conduit were sold at an average
of $30,000 per conduit mile, $465 million of revenue would be
generated. The $30,000 figure was arrived at by looking at prior
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Last modified: May 25, 2011