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resulted in approximately 270 conduit miles and a total
construction cost of $25,249,137.
C. Telecommunication Services
During the years in issue, Qwest also provided
telecommunication services, which included: (1) Selling of
transmission capacity in bulk, including both dedicated line and
switched services, to interexchange carriers and competitive
access providers; and (2) providing long-distance services to a
customer base of end users in the business, education, and
government sectors, also known as commercial services.
Qwest provided its telecommunication services primarily using
capacity it received: From leases with other long-distance
carriers; from certain of its customers’ fiberoptic cables; from
the digital microwave transmission network acquired through its
purchase of Qwest Transmission, Inc. (Qwest Transmission), in
January 1995; and from the fiberoptic systems it owned along the
Dallas-Houston and Cal Fiber routes.
Qwest initially started to market its switched services and
commercial services by hiring a sales force in 1994 and 1995.
The focus was on cities such as Los Angeles, Phoenix, San
Francisco, Denver, and Salt Lake City. By 1996, Qwest cut back
on the sales activities because maintaining the sales staff and
offices and leasing transmission capacity from other long-
distance carriers became too expensive.
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