Q Comment on NYDPS White Paper 8-5-05

STATE OF NEW YORK PUBLIC SERVICE COMMISSION CASE 05-C-0237 - Joint Petition of Verizon New York Inc. and MCI, Inc. for a Declaratory Ruling Disclaiming Jurisdiction Over, or in the Alternative, for Approval of, Agreement and Plan of Merger. CASE 05-C-0242 - Joint Petition of SBC Communications Inc., AT&T Corporation, together with its Certificated New York Subsidiaries, for Approval of Merger. QWEST COMMUNICATIONS CORPORATION COMMENTS ON THE DEPARTMENT OF PUBLIC SERVICE STAFF WHITE PAPER Lynn Stang Peter A. Rohrbach Qwest Services Corp. Janet L. McDavid 1801 California St., 10th Floor David L. Sieradzki Denver, CO 80202 Yaron Dori (303) 383-6611 HOGAN & HARTSON, LLP 555 – 13th St., NW Washington, DC 20004 (202) 637-5600 Keith J. Roland ROLAND, FOGEL, KOBLENZ & PETROCCIONE One Columbia Place Albany, NY 12207 (518) 434-8112 Attorneys for Qwest Communications Corp. August 5, 2005 TABLE OF CONTENTS Page INTRODUCTION .......................................................................................................................1 I. THESE PROPOSED TRANSACTIONS POSE CRITICAL RISKS TO THE FUTURE OF TELECOMMUNICATIONS COMPETITION IN NEW YORK.................2 II. THE STAFF’S ANALYSES OF MARKET DEFINITIONS, MARKET POWER, AND COMPETITIVE IMPACTS ARE ON TARGET. ......................................................6 III. THE VERIZON-MCI MERGER WOULD UNDERMINE RETAIL ENTERPRISE ...