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3. Projects With No Third-Party Customer8
In two instances, Qwest installed conduit and pulled fiber
for itself without having a customer contract in place.
In the Cal Fiber project, Qwest linked unconnected segments
of empty conduit. The unconnected segments of conduit were
previously installed and retained by Qwest as part of the Coast
Route project.
Qwest completed the Cal Fiber project in March 1995 by
laying 153 miles of new conduit, pulling fiber through the
conduit, and lighting the fiber. The Cal Fiber project gave
Qwest a completed fiberoptic system from Roseville, California,
to Los Angeles, California. Qwest’s total construction cost for
the Cal Fiber project was $32,496,284. Northern Telecom Finance
Corporation provided financing for the majority of the Cal Fiber
project costs, with the balance funded by internal financing.
In the Dallas-Houston project, Qwest installed conduit,
pulled fiber, and lit the fiber for its own account. Qwest began
construction of the Dallas-Houston project in February 1995 and
completed it in May 1997. At the time Qwest began the Dallas-
Houston project, Qwest anticipated that WorldCom Network
Services, Inc., d.b.a. WilTel (WilTel), would purchase the
conduit, which it in fact did. The Dallas-Houston project
8 Cost allocations relating to projects without third-party
customers are not in issue.
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