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EXHIBIT 99.1
Summary of an agreement between McLeodUSA Incorporated and Qwest Communications
International Inc., which was announced on October 31, 2000.
McLeodUSA Incorporated entered an agreement with Qwest Communications
International Inc. for voice and data communications services valued at $600
million over three years.
This multi-year, multi-product, multi-million-dollar agreement will make it
possible for McLeodUSA to serve our customers in Qwest territory through an
expanded set of services, products and platforms. We believe this agreement
will generate revenue and capital expenditure savings while allowing us to
harness the potential of Qwest system components and services.
We are pleased with Qwest's commitment to improve service to consumers, its
progress toward opening the marketplace to competition, and the new relationship
this agreement establishes between McLeodUSA and Qwest management.
The industry-first agreement contains significant financial and customer
benefits, including the sale of additional features and information services
that Qwest has not offered competitive local exchange carriers (CLECs). This
enables McLeodUSA to offer its customers such popular services as DSL and voice
messaging while increasing Qwest's revenues. Additionally, this agreement
creates an incentive for McLeodUSA to use Qwest's high-speed broadband network
along with its own facilities. This long-term agreement is unique in the
industry in that it was negotiated on a business-to-business basis instead of
being arbitrated by regulators.
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