- 11 - itself (third-party-only projects).7 In 12 projects, Qwest installed conduit for third-party customers while simultaneously installing conduit along the same route for its own potential future use or sale (conduit installation projects). In the remaining three projects, Qwest pulled fiber using conduit previously laid and retained by Qwest and granted third-party customers indefeasible rights of use (IRUs) in a certain number of fibers (IRU projects). 1. Conduit Installation Projects In the conduit installation projects, Qwest generally followed the same procedure: (1) Qwest contracted with a third- party customer for installation of conduit over a certain route; (2) conduit was installed along Southern Pacific’s or other railroad companies’ rights-of-way; (3) Qwest received cash compensation or DS-3 capacity for installing the conduit; and (4) Qwest simultaneously installed and retained additional conduits for its own potential future use or sale. Qwest and the customer negotiated and agreed to a fixed price, with adjustments possible under specific circumstances, for Qwest to install conduit over a particular route. During the years in issue, Qwest charged its customers approximately $30,000 to $40,000 per conduit mile. 7 The third-party-only projects include: (1) USW Clifton- Rifle; (2) PAC Bell; (3) USW Romero-Santa Fe; and (4) MFS Denver IRU. These projects are not directly in issue and will not be discussed in detail.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011