June 3, 2004

Telecommunications and Web hosting providers MCI (mci.com) and Qwest (qwest.com) announced this week that they have concluded a commercial agreement for wholesale network access services. The agreement, which came just three months after the Federal Communications Commission vacated wholesale pricing rules, provides MCI with availability and wholesale pricing continuity.

According to MCI and Qwest, the agreement marks the first time an incumbent local exchange carrier and a major competitive local exchange carrier have reached a commercially negotiated pact for local network access.

"This is a historic day for our industry. Qwest and MCI proved that two companies, that are direct competitors, can embrace the principals of a free-market economy and reach a commercial services agreement that will allow them, together, to serve customers well," says Richard C. Notebaert, chairman and chief executive officer of Qwest.

"While this agreement was forged without any regulatory assistance, we would like to thank FCC chairman Michael Powell, for his continued support and encouragement to identify a solution to this complex industry issue."

The agreement maintains existing prices through December 31, 2004 and provides for incremental price adjustments at scheduled points within the transition period that runs through January 2007.

"It has been MCI's position that good faith commercial negotiations can result in agreements that reflect the changing industry landscape and avoid complex regulatory proceedings and litigation," says Michael D. Capellas, president and chief executive officer of MCI. "This agreement proves that a negotiated outcome is not only possible, but mutually beneficial."

Source: The WHIR