Anschutz Company and Subsidiaries - Page 58

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          to install additional conduit or pull additional fiber only after           
          the customer contract was entered into.  Petitioners’ witnesses             
          credibly testified that Qwest would not have installed conduit or           
          pulled fiber for its own potential future use or sale without the           
          third-party customer contracts.  The Cal Fiber project and the              
          Dallas-Houston Project do not cast doubt on this decision-making            
          approach.                                                                   
               In the Cal Fiber project, Qwest linked unconnected segments            
          of empty conduit that were previously installed and retained by             
          Qwest as part of the Coast Route Project.  As part of the Cal               
          Fiber project, Qwest laid 153 new miles of conduit to complete a            
          fiberoptic system from Roseville, California, to Los Angeles,               
          California.  The Coast Route project was the first project in               
          which Qwest simultaneously installed conduits for third-party               
          customers and multiple conduits for its own potential future use            
          or sale.  As a result of the Coast Route project, Qwest obtained            
          several unconnected segments of empty conduit along the Coast               
          Route.  Petitioners argue that installing conduit to connect                
          these segments was not a departure from Qwest’s normal business             
          strategy because Qwest was installing only small portions of                
          conduit to connect a much bigger system of conduits.  The cost              
          was relatively modest, and Qwest took the risk because a                    
          connected fiberoptic system could potentially have a much higher            
          value.                                                                      






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