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<p class=MsoNormal><font size=3 color=black face=Arial><span style='font-size:
12.0pt'> Kudos to State Department of Information Technology for its
efforts. Not only does the Qwest proposal go outside the AFOR plan’s
desired outcomes, it also would amount to a subsidized effort against existing
companies Big Byte and Oso Grande.<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face=Arial><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face=Arial><span style='font-size:
12.0pt'>Carroll Cagle<o:p></o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face=Arial><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face=Arial><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><font size=3 color=black face=Arial><span style='font-size:
12.0pt'><br>
</span></font><b><font size=5><span style='font-size:16.0pt;font-weight:bold'>Money
Dispute Stalls Qwest's </span></font></b><b><font size=5 face="Arial Unicode MS"><span
style='font-size:16.0pt;font-family:"Arial Unicode MS";font-weight:bold'>‘</span></font></b><b><font
size=5 face="Times New Roman"><span style='font-size:16.0pt;font-family:"Times New Roman";
font-weight:bold'>CyberCenter'</span></font></b><b><font size=5><span
style='font-size:16.0pt;font-weight:bold'> <o:p></o:p></span></font></b></p>
<p class=MsoNormal><font size=3 color=black face=Arial><span style='font-size:
12.0pt'><o:p> </o:p></span></font></p>
<p class=MsoNormal><st1:City w:st="on"><st1:place w:st="on"><font size=3
color=black face=Arial><span style='font-size:12.0pt'>Albuquerque</span></font></st1:place></st1:City>
Journal – front page<o:p></o:p></p>
<p class=MsoNormal><font size=3 color=black face=Arial><span style='font-size:
12.0pt'>Thursday, July 17, 2008 <br>
<br>
<br>
<span class=popup><a
href="http://www.abqjournal.com/cgi-bin/email_reporter.pl?staff=yes"><!--BSHTAG--><!--PARSER:--><!--CTPROVIDER:Albuquerque
Journal--><!--TITLE: Money Dispute Stalls Qwest's ?CyberCenter'--><!--COPYRIGHT:Copyright
2008 <a
href="http://www.albuquerquejournal.com">Albuquerque
Journal</a>--><!--AUTHOR: Andrew Webb--><!-- ORIGINAL PHOTO PATH = #PHOTOPATH1# --><!--BSHSTARTBODY--><span
title="E-mail reporter Andrew Webb!">By Andrew Webb</a></span><br>
<span class=popup><!--ss-->Journal Staff Writer</span><br>
<span class=popup><!--es--> <!--indent--> <!--endind-->
Qwest Corp. hopes to build a $40 million "CyberCenter" in <st1:City
w:st="on">Albuquerque</st1:City>, a project company officials say will make <st1:State
w:st="on">New Mexico</st1:State> more attractive to high-tech businesses and
could even give the state a better shot at landing the <st1:place w:st="on"><st1:PlaceName
w:st="on">Air</st1:PlaceName> <st1:PlaceName w:st="on">Force</st1:PlaceName> <st1:PlaceName
w:st="on">Cyber</st1:PlaceName> <st1:PlaceName w:st="on">Command</st1:PlaceName>
<st1:PlaceType w:st="on">Center</st1:PlaceType></st1:place>.</span><br>
<span class=popup><!--indent--> <!--endind--> But there's a
glitch.</span><br>
<span class=popup><!--indent--> <!--endind--> The company
wants $10 million of the money it would invest in the project to count against
the $255 million it is required to spend to pay off commitments to the state,
and two opponents of the plan say that shouldn't be allowed.</span><br>
<span class=popup><!--indent--> <!--endind--> The
40,000-square-foot center would allow Qwest's corporate customers to store
computer equipment and backup data in a secure, controlled environment with
direct hookups to major communications backbones. It would be housed in a
former call center space at Qwest's Downtown Albuquerque office building.</span><br>
<span class=popup><!--indent--> <!--endind--> Qwest says time
is of the essence.</span><br>
<span class=popup><!--indent--> <!--endind--> Officials for
the Denver-based company said this week a big customer is waiting in the wings,
and the project will likely go elsewhere if it doesn't get the blessing of the
Public Regulation Commission soon.</span><br>
<span class=popup><!--indent--> <!--endind--> Company officials
say the $10 million will make or break the deal.</span><br>
<span class=popup><!--indent--> <!--endind--> The money is
subject to a 2006 agreement between Qwest and the state, called the Second
Amended Settlement Agreement, or SASA. It was reached after the Public
Regulation Commission found Qwest had failed to meet previous infrastructure
investment targets that were contemplated in the rates the company was allowed
to charge.</span><br>
<span class=popup><!--indent--> <!--endind--> The agreement
calls for investing $255 million by 2010 for various projects. These include
nearly doubling the provision of high-speed Internet access in rural areas,
upgrades to existing systems and the expenditure of at least $50 million on
advanced technology services throughout its service territory.</span><br>
<span class=popup><!--indent--> <!--endind--> Qwest says it is
meeting the specific goals and wants the $10 million for the CyberCenter to
count toward the general improvement requirements.</span><br>
<span class=popup><!--indent--> <!--endind--> If it builds the
CyberCenter, the company expects to spend the $40 million to improve
ventilation, utilities and other infrastructure in five floors of its office
building to house the center. The center would provide backup and other data in
an environment safe from natural disasters such as floods and tornadoes and
reduce their costs for housing computer equipment.</span><br>
<span class=popup><!--indent--> <!--endind--> The space was
formerly used for about 300 sales and directory service employees, which have
been trimmed over the years as Qwest dealt with rapidly changing communications
trends and technologies, such as the switch from traditional land-line
telephones to wireless.</span><br>
<span class=popup><!--indent--> <!--endind--> Although the
project has the backing of the city and business groups, some, including the
state's Department of Information Technology and the PRC staff itself, question
whether the $10 million investment would serve the original agreement's purpose
— to improve telephone and high-speed Internet service and availability,
especially in rural and underserved areas.</span><br>
<span class=popup><!--indent--> <!--endind--> Furthermore,
they argue, at least two other companies already offer similar service in <st1:City
w:st="on"><st1:place w:st="on">Albuquerque</st1:place></st1:City>.</span><br>
<span class=popup><!--indent--> <!--endind--> Qwest is
expected to present the proposal to the PRC and ask for an expedited decision
today in <st1:City w:st="on"><st1:place w:st="on">Santa Fe</st1:place></st1:City>.</span><br>
<span class=popup><!--indent--> <!--endind--> Normally, the
company would make the investments and report them later as expenditures
allowed under the $255 million SASA agreement.</span><br>
<span class=popup><!--indent--> <!--endind--> But in this
case, Qwest decided to seek the PRC's go-ahead before proceeding, lest questions
be raised later, <st1:State w:st="on"><st1:place w:st="on">New Mexico</st1:place></st1:State>
president Loretta Armenta said.</span><br>
<span class=popup><!--indent--> <!--endind--> "We'd like
to get started as soon as possible" on the project, Armenta said. "We
have this customer really waiting to hear back from us .... We've really been
champing at the bit to get this."</span><br>
<span class=popup><!--indent--> <!--endind--> The customer
could not be named, she said.</span><br>
<span class=popup><!--indent--> <!--endind--> Qwest proposed
the center to PRC staff about six months ago, and asked the commission to
expedite its response. The center would be one of more than a dozen nationwide.</span><br>
<span class=popup><!--indent--> <!--endind--> If the use of
the funds is not approved, "the business case for the CyberCenter will
collapse, and Qwest cannot make this investment," attorneys for Qwest
wrote.</span><br>
<span class=popup><!--indent--> <!--endind--> Armenta also
said a CyberCenter of this size could be important in New Mexico's bid to lure
the Air Force Cyber Command — a goal of Gov. Bill Richardson.</span><br>
<span class=popup><!--indent--> <!--endind--> But the New
Mexico Department of Information Technology said the CyberCenter proposal does
not fall under the SASA limitations or goals of network improvement.</span><br>
<span class=popup><!--indent--> <!--endind--> "The SASA
funds are not designed as a substitute or subsidy for a business case for
building of (a) Qwest CyberCenter," the department said. "They are
designed to make up for Qwest's previous failures to invest in its
telecommunications network.</span><br>
<span class=popup><!--indent--> <!--endind--> "The
CyberCenters themselves, while no doubt useful and beneficial to Qwest, do not
improve the <st1:State w:st="on"><st1:place w:st="on">New Mexico</st1:place></st1:State>
telecommunications network."</span><br>
<span class=popup><!--indent--> <!--endind--> The department
also noted two similar <st1:City w:st="on"><st1:place w:st="on">Albuquerque</st1:place></st1:City>
businesses, Big Byte and Oso Grande, that operate data storage and computer
equipment collocation centers.</span><br>
<span class=popup><!--indent--> <!--endind--> PRC staff, noting
the reservations of the Department of Information Technology, asked the PRC to
deny Qwest's requests for a quick decision and instead schedule hearings and
request more evidence the project would fall under the SASA guidelines.</span><o:p></o:p></span></font></p>
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