- 59 -
In the Dallas-Houston project, Qwest installed 270 miles of
conduit, pulled fiber, and lit the fiber without a third-party
contract in place. Petitioners explain that this was not a
departure from Qwest’s normal business strategy because Qwest
began construction only after management assured Mr. Anschutz
that WilTel would purchase the conduit. Subsequently, WilTel
purchased the Dallas-Houston conduit system.
The Cal Fiber and Dallas-Houston projects were departures
from Qwest’s general conduit installation and fiber-pulling
procedures. However, the significance respondent attaches to the
departures is not justified. The testimony shows that the
projects were consistent with Qwest’s overall business strategy
of installing conduit or pulling fiber only when the risk of
doing so could be limited. These projects do not suggest that
Qwest’s primary focus in the projects at issue was its retained
assets rather than the conduit installed or fiber pulled for the
third-party customer, as respondent contends.
Accordingly, we find that Qwest’s primary focus in its nine
conduit installation projects and three IRU projects was the
third-party customer contracts. But for the existence of the
third-party contracts, Qwest would not have installed additional
conduit or pulled additional fiber.
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