Qwest 2Q07 VoIP update

• Estimated number of OneFlex VoBB subscribers: 100k to 150k
• VoIP minutes handled during 2Q07: approx 9.5 billion minutes (nearly all internal long distance and carrier wholesale voice traffic). Our estimates are Qwest handled about 29 billion minutes of long distance voice traffic in 2Q07. So migration to VoIP in the national long distance seems about 30% complete
• Access lines lost to VoIP during 2Q07: Do not know exactly, but lost 772k retail and 239k wholesale local voice lines from 2Q06 till 2Q07. Total lines lost during the one year period is 1.01 million. If half of those is to VoIP (other half being shared by mobile and cable), then it seems like Qwest is losing around 125k access lines to VoIP each quarter. Obvioulsy it is not able to make up for losses through its VoBB offering.
• There was a $109 million revenue decrease in local voice services compared to same period last year. That includes wholesale as well as retail. Retail element - including residential as well as business - decrease was about $90 million compared to same period last year. That is a substantial reduction.
• Qwest had about 2.4 million broadband subscribers as of June 30, 2007.