1. Altamar study of the Q west Q 3 network 2002 and 2004 demand one & two responses plus follow-up to the 11/29 meeting Jan. 22, 2002 Proprietary and Confidential

2. Meeting Objectives Review 11/29 meeting outcome Share results for 2002 and 2004 demand one & two solutions Design approach Trade-offs Economics Migration economics from 2002 to 2004 Feedback from Qwest Address requests from 11/29

3. Agenda 1.Review 11/29 meeting outcome 2.Our approach to the 2002 and 2004 demands 3.Economic summary 4.Demand solutions 1.Assumptions and design rules 2.2002 Network design 1.Network level and link detail 2.Cost distribution 3.2004 Network design for demand one and two a.Network level and link detail b.Cost distribution 5.Economics of migration from 2002 to 2004 6.Comments from Qwest 7.Address specific requests from 11/29 meeting

4. 11/29 Meeting Review Presented preliminary solution for demand one –Optimized use of switching granularity integrated with a range of amplifiers provides a least cost, agile network –Scalable STS48 switch with STS1 grooming –Reconfigurable OADM used for through traffic –LR, ULR and Raman deployed for least cost Titanium economics –Equipment cost$537.4MLink + Node sites –EFI$ 15.1MSite eng, install, test & turn-up –Software$ 10.3MNMS/EMS and Northbound Qwest Feedback –Economics are “order of magnitude” better than current practice –Continue the dialogue with 2002 demand set and follow-up items

5. Our approach To include what we did differently this time Lowest-cost network design requires optimized use of technologies –Appropriate mix of transparency and connectivity –Appropriate distribution of switching granularity Wavelength, OC48, STS1 –Appropriate transponder selection per link 10G LR, 10G ULR, 40G –Appropriate link design Dispersion maps, equalization, amp technology Lowest-cost network not the same as lowest cost network element details

6. Economic summary 2002 2004/2 2004/1 $242.241,036 $537,360,886 $776,232,847

7. 2001 Altamar Networks. All rights reserved Altamar study of the Qwest Q3 network Demand 2002 Demand 2004.1 Demand 2004.2

8. Transmission ranges for 100km spans Long range700 km1300 km Ultra long range1200 km2100 km Long range800 km1400 km Ultra long range1600 km2500 km E-LEAF True Wave Classic OADM assumption: subtract 100 km for each OADM (Network comparison of TWC & E-LEAF in supporting slides)

9. Grooming & routing OC48OC48cOC48OC192 Sub OC-48 grooming OC-48 intermediate grooming & routing WP OC-192 V-ring traffic OC-192 mesh traffic SONET OC-48 grooming OC-48 grooming (Network comparison of V-ring & 1+1 in supporting slides)

10. Methodology Grooming and routing OADM location & orientation Least cost transmission solution Network dimensioning Cost Analysis

11. V-rings map

12. 2001 Altamar Networks. All rights reserved 2002 Demand 2002: $242,241,035 Routing 938 Demands

13. Demand 2002 OADM Transparency Map Common o-e-o switches Common o-e-o & OADMs

14. Demand 2002 OADM Link Map 0 0 0 0 3 4 0 6 1 14 0 4*3R 29 Amps 17 11 6 6 9 4 9 6 10 9 9 4 4*3R 31 Amps 10 15 1 4 6 4 6 4 3 11 4 5 4 4 3 7 4 2 6 5 4 4 7 7 4 2 0 1 2 8 1 0 6 4 5 3 1 EDFA Links Raman Links

15. Nodal View of Transponders

16. 2002 price distribution Price ($) of Whole Network $10,778,849 $74,140,790 $84,919,639 $9,455,533 $69,273,245 $47,121,029 $116,394,274 $17,121,488 $1,478,929 $12,871,172 $14,350,102 $0 $50,000,000 $100,000,000 $150,000,000 $200,000,000 $250,000,000 $300,000,000 Line Sites Nodes Total Price $ Common Equipment OADMs Optical Shelves Switch Shelves Transponder Shelves

17. ATLN detail Rack & common equipment % SHOWS PRICE PROPORTION OF $7.02M Transponder & switch cards Optical shelf cards Bays7 Transponder Shelf/Backplane10 Switch Shelf/Backplane3 OS Shelf/Backplane7 Switch/Controller Card38 Optical Telemetry Card4 OC-192 LR Transponder Card0 OC-192 ULR Transponder Card130 OC-192 SR Transponder Card10 OC-48 SR Transponder Card10 Switch Parallel Optics Card28 Mux/demux cards8 C-band EDFA8 L-band EDFA0 Raman C+L Card1 DCM cards24 Loading Card4 OS controller cards18 OADM0

18. Rack & common equipment Transponder & switch cards Optical shelf cards MPLT – CHCG Link % SHOWS PRICE PROPORTION OF $3.71m Transponder shelf Switch shelf Optical shelf Common equipment OADM 15 * Amps 0 * Regenerators ULR with Raman Xm choice Bays15 Transponder Shelf/Backplane0 Switch Shelf/Backplane0 OS Shelf/Backplane30 Switch/Controller Card0 Optical Telemetry Card0 OC-192 LR Transponder Card0 OC-192 ULR Transponder Card0 OC-192 SR Transponder Card0 OC-48 SR Transponder Card0 Switch Parallel Optics Card0 Mux/demux cards0 C-band EDFA15 L-band EDFA0 Raman C+L Card30 DCM cards60 Loading Card0 OS controller cards60 OADM0

19. 2001 Altamar Networks. All rights reserved 2004 Demand 1 = $537,360,886 Routing 3506 Demands Demand 2 = $776,232,847 Routing 3477 Demands

20. 2004 OADM Transparency Map D1 & D2 Common o-e-o switches Common o-e-o & OADMs OADMs for Demand 1 only OADMs for Demand 2 only

21. Link map EDFA Links Raman Links

22. Total Cost Breakdown by Shelves Demand 2 Demand 1

23. Wavelength km Demand 1 Demand 2 Total: 6,934,280 Total: 4,413,062

24. 2001 Altamar Networks. All rights reserved Migration 2002 to 2004 Demand 1 Cost Delta: $346,728,831

25. Migration Overview Transponder Shelves 45% Switch Shelves 5% Optical Shelves 35% OADMs 9% Common Equipment 6% Price Breakdown Change in Equipment Cards

26. A closer look at the transponder delta by node Additional OADMs in 2004

27. 2002 Link Map 2002 = 15 Raman Links 2004 D1 = 34 Raman Links

28. 2004 Link Map D1 2002 = 15 Raman Links 2004 D1 = 34 Raman Links

29. 2001 Altamar Networks. All rights reserved Migration 2002 to 2004 Demand 2 Cost Delta: $533,991,812

30. Migration Overview Transponder Shelves 42% Switch Shelves 5% Optical Shelves 37% OADMs 10% Common Equipment 6% Price Breakdown Change in Equipment Cards

31. A closer look at the transponder delta by node Additional OADMs in 2004 OADM not required in 2004

32. 2002 Link Map 2002 = 15 Raman Links 2004 D1 = 34 Raman Links

33. 2004 Link Map D2 2002 = 15 Raman Links 2004 D1 = 34 Raman Links

34. Qwest Comments Status of the Q3 Effort? Comments on Altamar’s Work –Design –Fit to Need –Economics What is the next step in Altamars’ evaluation We believe there are at least 22 vendors being considered –What criteria will be used to select the finalists –When will the final group be identified

35. Specific items from 11/29 Line site to OADM cost and service affects Transparency of DCC and B1/B2 Product roadmap Vivek link results later DWDM line costs later SONET switch grooming later

36. Service Capabilities SONET based service interfaces –Protected and unprotected end to end services with short reach 1310nm optics OC-48c OC-192 OC-192c –Service interfaces are optionally 1+1 protected –Services are optionally protected in the transport network by Virtual 4F BLSRs over a physical mesh (50ms protection) –Grooming can occur at STS-48 and STS-1 –SONET framing supports classic TDM transport as well as POS based router traffic Other planned service interfaces –OC-192 VSR-1 for lower cost connections –Gigabit Ethernet –10 Gigabit Ethernet –Others as required