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Qwest 3Q07 VoIP Update

• Estimated number of OneFlex VoBB subscribers: 150k to 190k

• VoIP minutes handled during 3Q07: between 9.5 billion to 10 billion minutes (nearly all internal long distance and carrier wholesale voice traffic). Our estimates are Qwest handled about 28 billion minutes of long distance voice traffic in 3Q07, about 35% of which is VoIP now.

• Access lines lost: 682k consumer, 97k business, and 226k wholesale local voice lines lost from 3Q06 till 3Q07. If a third of those is to VoIP (other two-thirds being shared by mobile and cable), then it seems like Qwest is losing around 80k access lines to VoIP each quarter.

• There was a $104 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 $61 million compared to same period last year.

• There was an increase in long distance VoIP revenue due to integrated access subscription by customers. %age increase not revealed.

• Qwest had 2.5 million broadband customers at end 3Q07

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