Lumen Technologies Inc (LUMN) 2001 Q1 法說會逐字稿

Good morning ladies and gentleman and welcome to the CenturyTel first quarter earnings conference call. At this time all participants are in a listen only mode. Later we will conduct a question and answer session and instructions will follow at that time. If anyone should require assistance during the call please press the star (*) followed by the zero on your touch-tone phone. As a reminder ladies and gentleman, this conference is being recorded. I would now like to introduce your moderator for today's conference Mr. Jeff Glover in Vice President of Investor Relations. Please go ahead sir.

女士們先生們早上好，歡迎來到 CenturyTel 第一季度收益電話會議。此時所有參與者都處於只聽模式。稍後我們將進行問答環節，屆時將進行說明。如果有人在通話過程中需要幫助，請在按鍵式電話上按星號 (*)，然後按零。女士們先生們，本次會議正在錄製中。我現在想介紹今天會議的主持人，投資者關係副總裁 Jeff Glover 先生。先生，請繼續。

Thank Jason, and welcome to CenturyTel's first quarter earnings conference call. Your host for today's call is Glen Post. Glen is Vice Chairman of the board, president and chief executive officer. Joining Glen is Karen Puckett. Karen is executive vice president and chief operating officer. Also joining Glen is Stewart Ewing. Stewart is executive vice president and chief financial officer. Before we begin, I would like to point out that during the course of this call we are likely to make certain forward looking statements. Please refer to our safe harbor language found in the body of our press release and also in our form 10K for the year ended December 31, 2000. At this time I would like to turn the call over to Glen Post. Glen.

感謝 Jason，歡迎來到 CenturyTel 第一季度收益電話會議。今天電話會議的主持人是 Glen Post。 Glen 是董事會副主席、總裁兼首席執行官。加入 Glen 的是 Karen Puckett。 Karen 是執行副總裁兼首席運營官。加入 Glen 的還有 Stewart Ewing。斯圖爾特是執行副總裁兼首席財務官。在我們開始之前，我想指出，在本次電話會議期間，我們可能會做出某些前瞻性陳述。請參閱我們的新聞稿正文中的安全港語言以及截至 2000 年 12 月 31 日的 10K 表格中的安全港語言。此時我想將電話轉給 Glen Post。格倫。

Thank you all for joining us for the call today. CenturyTel achieved first quarter earnings per share 34 cents excluding one hundred cents related ice storm damage in our southern markets. This is within the range of guidance we were previously given for the quarter 34 to 38 cents. With the ice storm, our Southern markets result in a one-time expense of about $2 million, about a penny a share. There are few additional items that I mentioned that

感謝大家今天加入我們的電話會議。 CenturyTel 的第一季度每股收益為 34 美分，不包括我們南部市場因冰暴造成的 100 美分損失。這在我們之前給出的季度 34 至 38 美分的指導範圍內。由於冰暴，我們的南部市場導致了大約 200 萬美元的一次性支出，約合每股 1 美分。我提到的其他項目很少

affected our quarter. First of all, earnings from our isolated sale of partnerships for the quarter was $3 million or a penny a share lower than anticipated due to weaker financial performance of our partners, and we believe this reflects the great degree of effects of the current economic down turn that we saw across the nation. Also after review of the profitability of some of the Verizon rate plans on a market-by-market basis, we have discovered a major expense issue with some of the unlimited calling plans being offered in Arkansas. These expenses reduced earnings about two cents per share for this quarter and we will discuss this in more detail later. experienced a 2.8 million dollar loss in our Internet business this quarter due to in large part in the number DSL net subscriber edition to expansion that segment of our business. We are pleased with our growth and DSL customer base, however expenses related to this growth in this segment that negatively impacted earnings for the quarter. We also experienced a 2.1million dollar loss in our operations and we began our operations in Louisiana in December. This is $1.6 million higher than the three losses, which we experienced a year ago. The combined impact of earnings per share from the unlimited calling plans, from the ice storm, the and DSL growth initiatives and from the reduced earnings from the unconsolidated sale of partnerships is about 6 cents per share for quarter. We have achieved cash earnings per share of 44 cents for the quarter that's including the ice storm also our revenue increased 25% to $516 million of consolidated

影響了我們的季度。首先，由於我們合作夥伴的財務表現較弱，我們本季度單獨出售合作夥伴的收益為 300 萬美元或每股低於預期 1 美分，我們認為這反映了當前經濟衰退的很大程度的影響我們在全國看到的。此外，在逐個市場審查了一些 Verizon 費率計劃的盈利能力後，我們發現阿肯色州提供的一些無限制通話計劃存在重大費用問題。這些費用使本季度的每股收益減少了約 2 美分，我們稍後將對此進行更詳細的討論。本季度我們的互聯網業務虧損 280 萬美元，這在很大程度上是由於 DSL 網絡用戶版本的增加，以擴大我們的該業務部分。我們對我們的增長和 DSL 客戶群感到滿意，但是與該部門增長相關的費用對本季度的收益產生了負面影響。我們還經歷了 210 萬美元的運營損失，我們於 12 月開始在路易斯安那州開展業務。這比我們一年前經歷的三項損失高出 160 萬美元。無限通話計劃、冰風暴、DSL 增長計劃以及未合併出售合夥企業的收益減少對每股收益的綜合影響約為本季度每股收益 6 美分。我們在本季度實現了每股 44 美分的現金收益，其中包括冰風暴，我們的綜合收入也增長了 25% 至 5.16 億美元

revenues our guidance was 510 to 525 million for the quarter. increased 27% 257.2million our guidance was 245 to 260 million, so we are in the guidance there. Our data revenue excluding acquisition and Internet rose 37% for the quarter. Also we have added 5,400 DSL customers during the quarter, ending the period with 11,400 DSL subscribers, representing 90% customer growth since the fourth quarter of 2000. Also, we expanded the number of DSL in April from 623,000 at year-end in 2000 to 1.2 million at the end of the first quarter. We now have DSL availability for 64% of our total access line, which includes the recent Verizon acquisitions. Our wireless net editions for the quarter were 17,600. We also added 29,600 long distance customers during the quarter and we believe that this reflects good progress for long distance penetration in the newly acquired Verizon markets. Overall, we are progressing well with the integration of the Verizon properties. Last quarter we brought to your attention that we were having difficulties obtaining intrastate access rate. It was constant at levels to achieve. I expect rates to return on the Verizon properties as well as access rates on the America Tech properties up there. Last week we were successful in obtaining interim rates of 8.8 million dollars annually on the former Ameritech properties pending the termination of final rates and our rate case that we file with the commission, so we have interim approval for 8.8 million dollars additional revenue there. In a separate order the cost the Wisconsin commission ordered to make a refund of

我們本季度的收入指引為 510 至 5.25 億美元。增加了 27% 2.572 億，我們的指導是 2.45 到 2.6 億，所以我們在那裡的指導。不包括收購和互聯網在內的我們的數據收入在本季度增長了 37%。此外，本季度我們還增加了 5,400 個 DSL 客戶，到本季度結束時有 11,400 個 DSL 用戶，自 2000 年第四季度以來客戶增長了 90%。此外，我們在 4 月份將 DSL 數量從 2000 年底的 623,000 個增加到第一季度末為120萬。我們現在有 64% 的接入線路都可以使用 DSL，其中包括最近收購的 Verizon。我們本季度的無線網絡版本為 17,600。本季度我們還增加了 29,600 名長途電話客戶，我們認為這反映出長途電話在新收購的 Verizon 市場中取得了良好進展。總體而言，我們在整合 Verizon 資產方面進展順利。上個季度，我們提請您注意我們在獲得州內訪問率方面遇到困難。它在要達到的水平上是恆定的。我預計 Verizon 資產的費率以及 America Tech 資產的接入費率會有所回升。上週，我們成功地獲得了前 Ameritech 物業每年 880 萬美元的臨時費率，等待終止最終費率和我們向委員會提交的費率案例，因此我們臨時批准了那裡 880 萬美元的額外收入。在單獨的命令中，威斯康星州委員會命令退還的費用

40.7 million dollars related access charges collective of former Ameritech profits from December 98 to 2000. We are continuing our appeal of this refund in the courts and we may be able to recover the refunded money at some point in the future. If the appeal is unsuccessful this event will result in a three cents charge to the earnings at that point in time. We are still working with the Wisconsin commission to obtain higher access rates in the state for the acquired Verizon properties. We do expect this will be successful in that effort. Our last quarter we pointed out that also in Missouri and Wisconsin, Verizon had depreciation rate that was substantially higher than our average rates. We successfully changed those rates with rate of full process during the first quarter. Also as I mentioned earlier we discovered some problems this quarter with certain unlimited local calling plans in the Arkansas Verizon markets. These plans were originally intended for voice usage and Internet customers have now become heavily users of the plan. We have been driving up the minutes of use, as well as the access expense there. These plans are costing us about two cents per share each quarter and we are seeking to have the plan capped at 500 minutes a month to reduce the expenses. The significance of this issue became obvious during the quarter and when we assumed financial responsibility for the calls associated with these plans, and began reviewing the plans for profitability. There is a four-month lag in the payment of these access expenses, for those plans in the state of Arkansas. So we are

從 98 年 12 月 98 日到 2000 年，前 Ameritech 獲利的 4070 萬美元相關接入費用集體。我們正在繼續向法院上訴這筆退款，我們可能會在未來的某個時候收回退款。如果上訴不成功，此事件將導致對當時的收入收取 3 美分的費用。我們仍在與威斯康星州委員會合作，為收購的 Verizon 資產在該州獲得更高的接入率。我們確實希望這會在這項工作中取得成功。我們在上個季度指出，在密蘇里州和威斯康星州，Verizon 的折舊率也大大高於我們的平均折舊率。我們在第一季度成功地將這些費率更改為全流程費率。另外，正如我之前提到的，本季度我們在阿肯色州 Verizon 市場上發現了某些無限製本地通話計劃的一些問題。這些計劃最初是為語音使用而設計的，互聯網客戶現在已成為該計劃的重度用戶。我們一直在提高使用時間以及那裡的訪問費用。這些計劃每季度花費我們每股約 2 美分，我們正在尋求將計劃限制在每月 500 分鐘以減少開支。這個問題的重要性在本季度變得很明顯，當時我們承擔了與這些計劃相關的電話的財務責任，並開始審查盈利計劃。對於阿肯色州的那些計劃，這些准入費用的支付有四個月的滯後。所以我們是

working diligently with the Arkansas Public Service Commission to resolve this issue and we think we will be successful in our effort in the coming months. Although we have met several regulatory optical with the integration of the Verizon properties, we are constant we will work with through these issues this year. We will be on track soon, back where we expected to be. We are working hard to upgrade plants in this market. We are rolling out new services to drive new revenue streams and really feel good at this point about where we are headed with this top line growth there. Excluding force, the regulatory issues were presented well. At this time I would like to turn the call over to Stewart Ewing, our chief financial officer to review or results for the first quarter on a business unit level and then update you on our fine tune guidance for the rest of the year.

與阿肯色州公共服務委員會一起努力解決這個問題，我們認為我們將在未來幾個月內取得成功。儘管我們在 Verizon 資產的整合方面遇到了幾個監管光學問題，但我們今年將繼續努力解決這些問題。我們很快就會走上正軌，回到我們預期的地方。我們正在努力升級這個市場的工廠。我們正在推出新服務以推動新的收入來源，並且在這一點上我們對我們在那裡實現這一收入增長的方向感到非常滿意。除了武力，監管問題也得到了很好的呈現。此時，我想將電話轉給我們的首席財務官斯圖爾特尤因，以審查第一季度業務部門層面的結果，然後向您更新我們對今年剩餘時間的微調指導。

Thank you Glen Good morning. In our telephone operations are telephone revenues including the acquisitions increased by 34.1% to little over 371 million dollars during the quarter. The Verizon acquisitions contributed about 88 million dollars to our telephone revenues for the quarter. Our internal revenue growth rate was 2.4% however if you include the growth in the Internet DSL and our long distance revenues, which we do not include in this segment of our business, but some other companies do our internal revenue growth rate was 4.1% data revenue growth excluding acquisitions was 37% compared with first quarter of last year. If you include the acquisition, the data revenue growth was up 93% and again our data revenues include our

謝謝格倫早上好。在我們的電話業務中，包括收購在內的電話收入在本季度增長了 34.1%，略高於 3.71 億美元。 Verizon 的收購為我們本季度的電話收入貢獻了約 8800 萬美元。我們的內部收入增長率是 2.4%，但是如果你包括互聯網 DSL 的增長和我們的長途收入，我們不包括在我們的這部分業務中，但其他一些公司做我們的內部收入增長率是 4.1% 數據與去年第一季度相比，不包括收購在內的收入增長了 37%。如果你包括收購，數據收入增長了 93%，我們的數據收入再次包括我們的

cash transport, ISDN, ATM frame relay, LAN WAN and in private lines. We ended the quarter with million eight hundred and three thousand access lines and a little less than two million voice rate equivalents although our access line growth rate was less at 1% during the quarter and annual line basis due to continued demand for data circuits our equivalent access line growth was 6.4%. We attribute the lower access line growth rate in addition to other things competition the economy as well as our some __ with DSL. Our operating cash flow margin was 54.2% compared with 54.8% in the first quarter of last year. Operating income for our one-line operations increased over 23% to $104 million from $84.5 million from the first quarter of last year. I would now like to review the results of our wireless operations. Wireless revenues increased 4% to 104.4 million dollars our average service revenue for subscriber during the quarter was 44 dollars compared with the 45 dollars in the first quarter of last year our service revenues excluding roaming revenues rose 5.5% to 80.5 million dollars during the quarter roaming revenues were actually up 1.3% to 20.6 million dollars. Our roaming minutes of use increased 25% while as we discussed in the past our average roaming declined by 18% to 35 cents a minute so the average roaming rate per minute during the quarter was 35 cents we believe our average roaming rate for the second quarter of 2001 will be approximately 32 cents for the quarter roaming revenues represented 20.4% of total service revenues compared with 21.1% for the first quarter of last year

現金傳輸、ISDN、ATM 幀中繼、LAN WAN 和專線。我們在本季度結束時擁有 183 萬條接入線路和略低於 200 萬的語音速率當量，儘管由於對數據電路的持續需求我們的等效線路，我們的接入線路增長率在本季度和年度線路基礎上低於 1%接入線增長6.4%。我們將較低的接入線增長率歸因於經濟競爭以及我們使用 DSL 的一些因素。我們的經營現金流利潤率為 54.2%，而去年第一季度為 54.8%。我們單線業務的營業收入從去年第一季度的 8450 萬美元增長了 23% 以上，達到 1.04 億美元。我現在想回顧一下我們無線運營的結果。無線收入增長 4% 至 1.044 億美元 本季度我們的訂戶平均服務收入為 44 美元，而去年第一季度為 45 美元 我們的服務收入（不包括漫遊收入）增長 5.5% 至 8050 萬美元 本季度漫遊收入實際上增長了 1.3%，達到 2060 萬美元。我們的漫遊使用分鐘數增加了 25%，而正如我們過去討論的那樣，我們的平均漫遊時間下降了 18% 至每分鐘 35 美分，因此本季度的平均每分鐘漫遊費率為 35 美分，我們相信我們第二季度的平均漫遊費率2001 年第一季度的漫遊收入約為 32 美分，佔總服務收入的 20.4%，而去年第一季度為 21.1%

so again the increase in the inbound minutes that we receive from other carriers all set to decline in the rate per minute that we experienced in the first quarter. The growth cellular units sold were 83,509 versus 93, 000 in the first quarter of last year of 10.2% decrease however we sold over 14,000 more post pay customers almost a 32% increase over last year. If you remember in last years first quarter we had a high percentage of our ads were pre paid units. Net cellular units for the quarter added were 17,600 versus 30, 700 in the first quarter last year again the primary difference there the change in the pre paid customers that we added this year versus last year. We had an 8,300 contract customers during the quarter, which amounted to about 47% of our net editions. Our sales and marketing cost per gross units sold was $225 versus $238 last year. If you include our loss on equipment sales our sales in marketing calls for gross unit was $256 versus $285 in the first quarter of last year. The percentage of while customers in digital rate plans has increased to 21% that is up from seven percentages at our customer base a year ago. We added about 9,300 free paid customers during the quarter versus against 24,000 pre paid net added in the first quarter of last year. Our charge rate in the first quarter for contract customers increased to 2.36% from 1.99% a year ago. Our pre paid turn rate was about 8.5% if you would include prepaid and contract customers our turn rate was 2.85%. While our operating cash flow was $41.5 million, which represents a 14.6% increase over the first quarter of last year

因此，我們從其他運營商那裡收到的入境分鐘數的增加，都將導致我們在第一季度經歷的每分鐘費率下降。與去年第一季度的 93, 000 相比，銷售的增長蜂窩單位減少了 10.2%，但我們銷售了超過 14,000 多個後付費客戶，比去年增加了近 32%。如果你還記得去年第一季度，我們有很大一部分廣告是預付費廣告。本季度增加的淨蜂窩單位為 17,600，而去年第一季度為 30、700，主要區別在於我們今年與去年增加的預付費客戶的變化。本季度我們有 8,300 名合同客戶，約占我們淨版的 47%。我們每銷售總單位的銷售和營銷成本為 225 美元，而去年為 238 美元。如果你包括我們的設備銷售損失，我們的銷售電話銷售總額為 256 美元，而去年第一季度為 285 美元。數字費率計劃中的 while 客戶百分比已從一年前我們客戶群的 7 個百分比增加到 21%。我們在本季度增加了約 9,300 名免費付費客戶，而去年第一季度淨增加了 24,000 名預付費客戶。我們在第一季度對合同客戶的收費率從一年前的 1.99% 增加到 2.36%。如果您將預付費和合同客戶包括在內，我們的預付費周轉率約為 8.5%，我們的周轉率為 2.85%。我們的經營現金流為 4150 萬美元，比去年第一季度增長 14.6%

operating, income for the wireless operations increased little over 25% to $24.9 million. Our wireless operating cash flow margin was 39.8% operating cash flow margin in wireless versus 36.1% in the first quarter of last year. I will now turn to our other operation segments, which are to price primarily of long distance, our Internet and our carry out local exchange carrier businesses. Revenues in this segments increased little over 13% to $40.4 million however, due to our select in DSL growth initially as we mentioned earlier they are included in this segment, operating cash flow from other operations decreased by 16.9% to $6.8 million. Operating income for this segment decreased to 24.6% to $5.3 million again these decreases are attributable to the standard losses associated with our select business as well as our DSL growth initiative. Long distance revenue increased $27.6 million a little over an 11% increase for quarter. Our average long distance revenue for subscriber was $24.25. Long distance operating income increased almost 43% to $7.5 million for the quarter. We have very good quarter in terms of the customers that we had in our long distance business. We had 29,600 customers this compares to about 15,400 in the first quarter of last year of the 29,600 that we added this quarter a little over 18,000 was market that required from Verizon. So are being successful in penetrating the former Verizon customer based in terms of selling other services into that customers based. Our long-distance customer penetration, our local exchanges, as percentage of access lines is now

運營方面，無線業務的收入增長略高於 25%，達到 2,490 萬美元。我們的無線運營現金流利潤率為 39.8%，而去年第一季度為 36.1%。我現在將轉向我們的其他運營部門，這些部門主要為長途電話、我們的互聯網和我們開展本地交換運營商業務定價。該細分市場的收入增長略高於 13% 至 4040 萬美元，但是，由於我們最初選擇了 DSL 增長，正如我們之前提到的那樣，它們被包括在該細分市場中，來自其他業務的經營現金流下降了 16.9% 至 680 萬美元。該部門的營業收入再次下降至 24.6% 至 530 萬美元，這些下降歸因於與我們的精選業務以及我們的 DSL 增長計劃相關的標準損失。長途電話收入增加了 2760 萬美元，略高於本季度 11% 的增幅。我們的訂戶平均長途收入為 24.25 美元。本季度長途電話運營收入增長近 43%，達到 750 萬美元。就我們在長途業務中擁有的客戶而言，我們有非常好的季度。我們有 29,600 名客戶，而去年第一季度我們在本季度增加了 29,600 名客戶，大約有 15,400 名客戶，Verizon 需要的市場略高於 18,000 名。因此，在向基於客戶的客戶銷售其他服務方面成功地滲透了基於 Verizon 的前客戶。我們的長途客戶滲透率，我們的本地交換，佔接入線的百分比現在是

20.4% versus 19.1% at the end of year at the end of last year. If you exclude the Verizon markets, which again were just ramping up long distance business in those markets, our penetration rate is 25%. Internet revenues were up almost 68% to $8.4 million for the quarter as we added approximately 10,000 Internet subscribers, which over half were DSL subscribers So over half of the additions we had in the Internet were in the DSL category, losses in the Internet business as the result of DSL initiative were $2.8 million compared with operative income of about 900,000 a year ago. As Glen previously indicated these losses stand primarily from the rapid growth of our DSL business as we seek to gain scale. The two main categories of expenses of DSL are the network cost as well as the subsidy that we have for the modems and we are addressing both of those issues and expect to see improvements there beginning sometime later part of the second quarter. We added about 1200 sea lack lines during the quarter which is on target with our plan, our select losses were 2.1 million dollars for the quarter versus a half million dollars last year we are very pleased with initial performance of our sea lack business in the first two markets that we entered which as Glen mentioned are in Louisiana. At this time I will turn to review of the guidance that we provided in our earnings release and talk a little bit about some of the factors influencing our decision to lower the guidance for EPS for the year. Pending the outcome of state regulatory issues that Glen has addressed and we will address further later. We believe

20.4% 對比去年年底的 19.1%。如果你排除 Verizon 市場，而 Verizon 市場再次剛剛在這些市場上增加長途業務，我們的滲透率為 25%。本季度互聯網收入增長近 68%，達到 840 萬美元，因為我們增加了大約 10,000 名互聯網用戶，其中一半以上是 DSL 用戶所以我們在互聯網上增加的一半以上屬於 DSL 類別，互聯網業務的損失是DSL 計劃的結果是 280 萬美元，而一年前的營業收入約為 900,000 美元。正如 Glen 先前指出的那樣，這些損失主要來自我們尋求擴大規模時 DSL 業務的快速增長。 DSL 的兩個主要支出類別是網絡成本以及我們對調製解調器的補貼，我們正在解決這兩個問題，並期望在第二季度晚些時候開始看到改善。我們在本季度增加了大約 1200 條海缺線，這符合我們的計劃目標，本季度我們的精選損失為 210 萬美元，而去年為 50 萬美元，我們對第一季度海缺業務的初步表現感到非常滿意正如 Glen 提到的，我們進入的兩個市場在路易斯安那州。此時，我將回顧我們在收益發布中提供的指引，並稍微談談影響我們決定降低今年 EPS 指引的一些因素。等待 Glen 解決的州監管問題的結果，我們將在稍後進一步解決。我們相信

we'll achieve the lower end of the previous guidance given for revenues EBIDTA and operating income. For the year, however we believe earnings per share before one time items will be in the range of $1.52 to $1.62. Cash earnings per share, we believe will be in the range of $1.94 to $2.04. There are a number of factors, which have led us to revise the EPS guidance; the first is a weaker economy, which has led us to reduce our revenue growth expectations. This impacted guidance at about five to six cents per share. The second item the higher than anticipated wire line expenses associated with the unprofitable calling plans in the Arkansas Verizon markets an issue again that believe that we can resolve during the third quarter of this year. This impacted our guidance about four cents of share. The third item is lower expectations for earnings from unconsolidated cellular partnerships as we mentioned earlier our partnerships that we participate in that were operated by others didn't perform as well as we expected this quarter therefore we have taken about two cents of share out of the annual guidance related to our investments in these partnerships and than also just greater expenses associated with rapid growth our DSL subscriber base. In terms of the second quarter, we anticipate that total revenues will range from $520 million to $535 million. We believe that second quarter operating cash flow will be in the range of $250 to $260 million. Second quarter operating income is anticipated to be approximately to $130 to $145 million and also for the upcoming quarter we believe EPS before one

我們將達到先前針對收入 EBIDTA 和營業收入給出的指導的下限。然而，我們認為全年不計一次性項目的每股收益將在 1.52 美元至 1.62 美元之間。我們認為每股現金收益將在 1.94 美元至 2.04 美元之間。有許多因素導致我們修改了 EPS 指南；首先是經濟疲軟，這導致我們降低了收入增長預期。這影響了每股約五到六美分的指導。第二項是與阿肯色州 Verizon 無利可圖的呼叫計劃相關的高於預期的有線線路費用，這再次成為我們相信我們可以在今年第三季度解決的問題。這影響了我們關於四美分份額的指導。第三項是對未合併蜂窩合作夥伴關係的收益預期較低，正如我們之前提到的，我們參與的由其他人運營的合作夥伴關係的表現不如我們本季度預期的那樣好，因此我們從中取出了大約兩美分的份額與我們在這些合作夥伴關係中的投資相關的年度指導，以及與我們的 DSL 用戶群快速增長相關的更多費用。就第二季度而言，我們預計總收入將在 5.2 億美元至 5.35 億美元之間。我們認為第二季度的運營現金流量將在 250 至 2.6 億美元之間。第二季度營業收入預計約為 130 至 1.45 億美元，而且對於即將到來的季度，我們認為每股收益將在一個之前

time items will be in the range of 35 to 40 cents per share and cash earnings per share during the quarter we expect to be in a range of 46 to 51 cents per share. This concludes our prepared remarks we will now invite you to ask questions.

我們預計本季度的時間項目將在每股 35 至 40 美分之間，每股現金收益將在每股 46 至 51 美分之間。我們準備好的發言到此結束，我們現在邀請您提問。

Thank you. Ladies and gentleman at this time If you have any question you will need to press the 1 on your touch tone phone and you will hear a tone acknowledging your request. Your questions will be taken in the order that they are received. If your question is already been answered you may remove yourself form key by pressing the pound key (#). In addition if you are using a speakerphone please pick up your hand set before pressing the button. One moment for the first question. Cathy Willing of Goldman Sax, please state your question.

謝謝。女士們，先生們，此時如果您有任何問題，您需要在按鍵式電話上按 1，您將聽到確認您的請求的提示音。您的問題將按照收到的順序進行處理。如果您的問題已經得到解答，您可以通過按井號鍵 (#) 刪除自己的表單鍵。此外，如果您使用免提電話，請在按下按鈕之前拿起您的聽筒。第一個問題請稍等。 Goldman Sax 的 Cathy Willing，請陳述您的問題。

Okay thanks. Can you talk a little bit more specifically about where you are seeing the slow down in the economy and what types of services this is affecting is it. Are you seeing a slow down in vertical services etc. and secondly can you talk about where you think you'll reached optimal scale in DSL in order to make this a profitable business and maybe give some data points on what the average cost is to acquire a new customer today.

好的謝謝。您能否更具體地談談您看到經濟放緩的地方以及這影響了哪些類型的服務。你是否看到垂直服務等方面的放緩？其次，你能否談談你認為你將在 DSL 中達到最佳規模，以便使其成為一項有利可圖的業務，並可能提供一些關於平均收購成本的數據點今天有一個新客戶。

Okay Cathy first of all with the economic slow down we are seeing most pronounced in the mid west it's where we really are seeing it. Most of the time also in the west in the Washington/Oregon area, we are seeing some impact there. And some in the south but the mid west is where it is most pronounced. A lot of business has closed, a lot of downsizing

好的，凱茜，首先，我們在中西部看到的經濟放緩最為明顯，這是我們真正看到的地方。大多數時候也在華盛頓/俄勒岡地區的西部，我們在那裡看到了一些影響。有些在南部，但中西部是最明顯的地方。很多企業倒閉，很多裁員

and it is impacting us there in particular, we have a lot of detail on those impact. But the first growth that we are seeing is actually in access line growth. We think that basically in line growth and second line growth and we're thinking it is at least a 2% access line growth impact on us, and also we think of the wireless side as impacting us some there so that is primarily where we are seeing it. There is some slowing of vertical services as well we know there is an impact there of course it is difficult for us to quantify we have had good vertical service growth but not at the level that we anticipated so we feel like it is an economy related issue there. DSL is still in strong demand of course the earlier down period is going to be there early on as the economy improves, we think that demand will just improve even more. So those are primaries that we see has impacts.

它特別影響我們那裡，我們有很多關於這些影響的細節。但我們看到的第一個增長實際上是接入線的增長。我們認為基本上是在線增長和二線增長，我們認為這至少對我們有 2% 的接入線增長影響，而且我們認為無線方面對我們有一些影響，所以這主要是我們所在的地方看到它。垂直服務也有一些放緩，我們知道這會產生影響，當然我們很難量化我們有良好的垂直服務增長，但沒有達到我們預期的水平，所以我們覺得這是一個與經濟相關的問題那裡。 DSL 的需求仍然強勁，當然隨著經濟的好轉，較早的低迷期會早早出現，我們認為需求只會進一步改善。所以那些是我們看到有影響的初選。

Okay and on DSL?

好的，在 DSL 上？

Hi this is Karen Puckett regarding DSL. If you look at DSL in terms of the cost component on the network side I look at the January numbers on a cost per customer basis and in the end of the quarter we had improvement of 23%, driven by just adding skill. With skill, as you add more customers on the on the band with the e-purchase, you get the efficiency in the network. We are very pleased with our network configuration and the efficiency that we are going to gain out of that. By the end of the year from end of first quarter we look for our efficiency in the network to improve by 45% being the cost of the network for customer will be down 45% from the end of first quarter so that is a dramatic improvement from year to year

大家好，我是關於 DSL 的 Karen Puckett。如果你從網絡方面的成本組成部分來看 DSL，我會根據每個客戶的成本查看 1 月份的數字，在本季度末，我們在增加技能的推動下提高了 23%。憑藉技巧，當您通過電子購買在樂隊中增加更多客戶時，您將獲得網絡效率。我們對我們的網絡配置以及我們將從中獲得的效率感到非常滿意。從第一季度末到今年年底，我們希望我們的網絡效率提高 45%，因為客戶的網絡成本將比第一季度末下降 45%，因此這是一個顯著的改進年復一年

or in twelve month basis. The other key component is the cost of the modem two things are happening there we have got the cost of the modem down currently we are in the 150 range we still have some modems in place our average right now is about 190. Last year the average was in the 250 range if you look at from the beginning to the end on average. The other key component on the modem is that we are beginning to charge for the modem. We are going to be charging 120 dollars we will do that to minimize the vary to the customer we are going to do that over a twelve months installation charge and with that we are also going to institute our 35 dollars connect fee. So essentially on the modem side if you add the $120 and the $5.00, we are making $5.00 on the modem in that aspect. In addition we are also taking prices up in the markets that we are ruling currently $10. Any new subscriber will be $10 except where there is competitive pressure with cable subscribers.

或以十二個月為基礎。另一個關鍵組成部分是調製解調器的成本那裡發生了兩件事我們已經降低了調製解調器的成本目前我們在 150 的範圍內我們仍然有一些調製解調器我們現在的平均水平約為 190。去年的平均水平如果您平均從頭到尾查看，則在 250 範圍內。調製解調器上的另一個關鍵組件是我們開始對調製解調器收費。我們將收取 120 美元的費用，以盡量減少對客戶的影響，我們將在 12 個月的安裝費用中這樣做，並且我們還將收取 35 美元的連接費。所以基本上在調製解調器方面，如果你添加 120 美元和 5.00 美元，我們在調製解調器方面賺了 5.00 美元。此外，我們還提高了我們目前規定的 10 美元的市場價格。除非與有線電視用戶存在競爭壓力，否則任何新用戶都將支付 10 美元。

Okay great thanks.

好的，非常感謝。

Seath) of Burlis), please state your question. [SEATH]:) I have a question about the growth in the legacy lines. It is 2.4% this quarter, which you know I think is about 400 basis points lower than what we wanted. You mentioned competition as one of the factors and I guess I thought competition is just in the acquired markets. Can you talk about the factors affecting that and you know sort of break them out you know the factor of each competition, the economy, substitution?

Seath) of Burlis)，請說出你的問題。 [SEATH]:) 我對遺留產品線的增長有疑問。本季度為 2.4%，你知道我認為這比我們想要的低 400 個基點。你提到競爭是因素之一，我想我認為競爭只是在被收購的市場中。你能談談影響它的因素嗎？你知道把它們分解出來嗎？你知道每個競爭、經濟、替代的因素嗎？

Tom, first of all the 2.4% is not just legacy it is total revenue growth for the quarter,

湯姆，首先，2.4% 不僅僅是遺留問題，還是本季度的總收入增長，

which excludes acquisitions as far as, it is in turn growth basically.

就排除收購而言，它基本上又是增長。

) Right, the legacy one. POST:) Right. The competition is primarily an acquired market it really is not impacting the legacy growth With access line growth we do consider the impact of the competition but in total you look from sequentially with the assess line growth that is where we are talking about the competition, but is was only 3,500 lines and almost all that was in acquired lines. A total of 3,500 lines loss to competition and the cannibalization was less than 1,000 lines on the DSL side, so it is less than 1% of the impact on annualized basis. The impact of the competition and the cannibalized lines so we think lot of that issue is very much an issue as economic issue in both the acquired markets and the legacy markets. ) Okay so primarily the economy. POST:) That's right. ) Okay. POST:) You know, in our access, you mentioned 400 basis points below. ) Don't you target about 6% growth once you get the LAN line? POST:) Yeah Tom, about 4%. Is our target. If you look at our history we have been around 4.5% or so. ) Okay, thanks.

) 對，遺留的。發布:) 對。競爭主要是一個被收購的市場，它確實不會影響遺留增長隨著接入線增長，我們確實考慮了競爭的影響，但總的來說，你從順序看我們正在談論競爭的評估線增長，但是只有 3,500 行，幾乎所有內容都來自收購的行。總共有 3,500 條線路因競爭而丟失，而 DSL 端的蠶食不足 1,000 條線路，因此在年化基礎上不到 1% 的影響。競爭和蠶食線的影響，所以我們認為很多問題在被收購市場和傳統市場中都是一個非常重要的經濟問題。 ) 好吧，主要是經濟。 POST :) 沒錯。 ） 好的。 POST :) 你知道，在我們的訪問中，你在下面提到了 400 個基點。 ) 獲得 LAN 線路後，您的目標不是增長 6% 左右嗎？ POST :) 是的，湯姆，大約 4%。是我們的目標。如果你看看我們的歷史，我們一直在 4.5% 左右。 ） 好的謝謝。

JASON JASON Mike) [Bullhoff] of [Lead Mason], please state your question. 00TIM BAKER: Hi gentleman this is Tim Baker actually in for Mike I got two questions one has to do with DSL and the other has to do with the Arkansas situation. I will give you the DSL one first. When you get a new DSL customer, it sounds like all them are ISP customers as well? I am wondering if only a DSL customer can get his ISP elsewhere? Also, when you do combine them like that, could you just talk a little bit about how the pricing works if there are various options

JASON JASON Mike) [Lead Mason] 的 [Bullhoff]，請陳述您的問題。 00TIM BAKER： 嗨，先生，我是 Tim Baker，實際上是 Mike 我有兩個問題，一個與 DSL 有關，另一個與阿肯色州的情況有關。我先給你一個DSL。當您獲得新的 DSL 客戶時，聽起來他們也都是 ISP 客戶？我想知道是否只有 DSL 客戶可以在別處獲得他的 ISP？另外，當你像那樣組合它們時，如果有多種選擇，你能談談定價是如何運作的嗎

based on speed and that kind of thing? With regards to the Arkansas issue, I am wondering first of all how this issue just came up and how you guys were not aware of it before number one if you can talk a little bit about that. What the impact is going to be at this cap, in other words can you talk a little bit about what the minutes are now in way of the traffic versus this 500-minute cap? And also I am just curious where does that show up in the income statement I am guessing it's in plan ops? Thank you.

基於速度之類的東西？關於阿肯色州問題，我首先想知道這個問題是怎麼出現的，以及你們是如何在排名第一之前不知道它的，如果你們能談談這個問題的話。這個上限會產生什麼影響，換句話說，你能談談現在的流量分鐘數與這個 500 分鐘上限的對比嗎？而且我很好奇它在損益表中的什麼地方出現我猜它在計劃操作中？謝謝。

Tim, I'll try to keep up with those. I don't know if I have all of them down? First of all, the DSL they do have an option of going to other ISPs and we do have lot of customers who do that that is an option they have.

蒂姆，我會努力跟上這些。不知道我是不是都下了？首先，DSL 他們確實可以選擇轉到其他 ISP，我們確實有很多客戶這樣做，這是他們的一個選擇。

However, we are marketing our internet dial-up to our customers so that for five dollars more as they travel and such and they need an ISP as they travel we are marketing that for $5.00 a package with the DSL to our DSL customer.

然而，我們正在向我們的客戶推銷我們的互聯網撥號，以便他們在旅行時多付五美元，並且他們在旅行時需要 ISP，我們正在向我們的 DSL 客戶推銷帶有 DSL 的套餐，價格為 5.00 美元。

We are also marketing different price plans for different speeds, different levels and we have those here.

我們還針對不同的速度、不同的級別營銷不同的價格計劃，我們這裡有。

Yeah as I said before we have taken our you know most traditional which is on residential side of ten dollars so it is $49.99 as opposed to $39.99 and we have done away with the contract because we are now charging for the modem. We had a lot of issues back end just in terms of getting the contracts back and we looked at some customer feedback and believe that this is the best route to go.

是的，正如我之前所說，我們採用了您所知道的最傳統的住宅端，價格為 10 美元，因此它是 49.99 美元，而不是 39.99 美元，我們已經取消了合同，因為我們現在對調製解調器收費。我們在收回合同方面遇到了很多後端問題，我們查看了一些客戶反饋並認為這是最好的方法。

Tim, with the minutes of use on the OCP plan we want to cap at 500. The average is up in the 1,000's We have a number of customers that just basically are in the twenty to thirty thousand minute range which cost us about five cents a minute or so to terminate that traffic and these

蒂姆，我們希望將 OCP 計劃的使用分鐘數限制在 500 分鐘。平均值在 1,000 分鐘左右。我們有一些客戶基本上在 2 到 3 萬分鐘的範圍內，這讓我們花費了大約 5 分鐘一分鐘左右終止該流量和這些

plans are basically the twenty dollar plan with no cap on the minutes, but what we are asking for is a cap of 500 minutes and then any additional minutes over the 500 minutes will be charged at eight cents per minute. We do believe that if we are successful and which we think we will be in getting the 500-minute cap. It will mean two cents of share per quarter compared to the first quarter this year. So we are talking big dollars here and your question about what happened here first of all basically we lack historical calling data. There are inherent delays in recording of these expenses, because of the complexity with the revenue expense recognition in __ common line movement in Arkansas. In addition to that this an area we haven't bought a lot of companies over the years and we have been doing this business for a long time the first come you have ever seen anything like this, with this magnitude of a price plan is just unbelievable. We call it a four-month lag and funding the PPL pool. We really didn't begin having responsibility for payment in the pool until the end of the year and we began seeing the impact in the first quarter in the January. We immediately initiated efforts to cap the plan. We immediately contacted the Arkansas Public Service Commission. That appeared to be our stand on issues. We have filed all the information with them. We had a testimony made in court. They set a date for hearing on July 26th, and we are trying to move it up to May. We have been doing all we can to expedite this issue. I do know the magnitude of it and we do believe we will be successful in the near term resolving it but it is just an extremely unusual situation this kind of impact on a pricing

計劃基本上是 20 美元的計劃，沒有分鐘上限，但我們要求的是 500 分鐘的上限，然後超過 500 分鐘的任何額外分鐘將按每分鐘 8 美分收費。我們確實相信，如果我們成功並且我們認為我們將獲得 500 分鐘的上限。與今年第一季度相比，這意味著每個季度的份額為 2 美分。所以我們在這裡談論的是大筆資金，而你關於這裡發生的事情的問題首先基本上我們缺乏歷史通話數據。由於阿肯色州 __ 公共線路移動中收入費用確認的複雜性，這些費用的記錄存在固有的延遲。除此之外，多年來我們在這個領域並沒有收購很多公司，而且我們從事這項業務已經很長時間了，第一次來你見過這樣的東西，如此大的價格計劃只是難以置信。我們稱之為四個月的滯後並為 PPL 池提供資金。直到今年年底，我們才真正開始負責池中的付款，我們在 1 月份的第一季度開始看到影響。我們立即開始努力限制該計劃。我們立即聯繫了阿肯色州公共服務委員會。這似乎是我們在問題上的立場。我們已經向他們提交了所有信息。我們在法庭上做了證詞。他們將聽證會日期定在 7 月 26 日，我們正試圖將其提前到 5 月。我們一直在竭盡全力加快解決這個問題。我確實知道它的嚴重性，我們確實相信我們會在短期內成功解決它，但這只是一種非常不尋常的情況，這種對定價的影響

plan an OCP plan and basically what has happened the initial record that we have looked at on this plan of course the minutes of use were significantly less, about half of what they are today. The internet usage folks got on the plan with internet data usage and just drove those minutes really out of size and that is really what has happened here since the initial information we had of acquisition and we just started getting the billing information again at year end and showed up in the first quarter.

計劃一個 OCP 計劃，基本上發生了什麼 我們在這個計劃上看到的初始記錄 當然，使用時間明顯減少，大約是今天的一半。互聯網使用人員制定了互聯網數據使用計劃，只是讓那些分鐘真的超出了大小，這確實是自從我們獲得初始信息以來這裡發生的事情，我們剛剛在年底再次開始獲取賬單信息，出現在第一季度。

And the access expenses are booked in the plain operation lines.

訪問費用記入普通操作線路。

We are also deploying dial up in many of these communities because the reason they were dialing outside was because GTE had not deployed any Internet dial-up. To date in the first quarter we added 1,899 dial-up Internet customers in the Verizon properties that we bought.

我們還在許多這樣的社區中部署撥號，因為他們向外撥號的原因是 GTE 沒有部署任何互聯網撥號。到目前為止，在第一季度，我們在我們購買的 Verizon 物業中增加了 1,899 名撥號互聯網客戶。

Am I to understand that the best solution here is to capture these ISP customers as your own, and get them to dial-up locally?

我是否理解這裡最好的解決方案是將這些 ISP 客戶據為己有，並讓他們在本地撥號？

That is exactly correct. If you look at the minutes increased there is significant opportunities for us to own those customers as ISP customers.

這是完全正確的。如果你看看增加的分鐘數，我們就有很大的機會將這些客戶作為 ISP 客戶。

How much have you tacked on as far as from a pricing perspective to expedite that?

從定價的角度來看，您付出了多少來加快速度？

We are looking at some packages in terms of you know getting them off the OCP plans or into the caps and as we roll out POPS in some of the more smaller areas. Right now our current pricing is off course is $19.99, but we may do some packaging there to expedite that process.

當我們在一些更小的區域推出 POPS 時，我們正在考慮將它們從 OCP 計劃中移除或納入上限的一些方案。目前，我們目前的定價是 19.99 美元，但我們可能會在那裡進行一些包裝以加快該過程。

Thank you very much. 00Loren Champion from Morgan Keegan, please state your question.

非常感謝。 00Morgan Keegan 的Loren Champion，請說出你的問題。

Hi guys first quick clarification I want to make sure that I heard that right the Arkansas

大家好，首先快速澄清一下，我想確保我在阿肯色州聽到的是對的

pricing plan is in fact two cents per share per quarter?

定價計劃實際上是每季度每股兩美分？

That's right two cents per share per quarter.

沒錯，每季度每股 2 美分。

And then my main question is really more on the wireless side. Retail service revenue growth of 4% obviously can you explain is that more of competition issue or economic slow down or combination of both? And then you know kind of bigger strategic issue is clearly it doesn't look to be a lot of reinvestment into this business and the cash flow generation is nice but any comments on the kind of competitive outlook and how long could you maintain this as more of cash flow generating business before you have to reinvestment in a bigger way?

然後我的主要問題更多是在無線方面。零售服務收入增長 4% 顯然你能解釋更多的是競爭問題還是經濟放緩或兩者兼而有之？然後你知道更大的戰略問題顯然是它看起來不會對這項業務進行大量再投資並且產生的現金流量很好但任何關於競爭前景的評論以及你能維持多長時間在您必須以更大的方式進行再投資之前，您的現金流產生業務？

As before as far as the retail growth 4% it really is a combination of competition and the economy I think it is both there is certainly a strong price competition especially the low end of the market the more used customers is tremendously price competitive. Just the basic economic conditions effect our turn to a great degree on the lowering customers also with economy we think we see a lot more turn than we would otherwise those are key issues. As far as the capital requirement in this business. We are holding off on the full digital conversion until hopefully the prices come down there and before we have to go to cheap three of something in between we do not feel any pressure to do that today. I think we are looking at another 12 or 24 months before we have to make any major decisions in that arena. Of course we will still be putting money into improved coverage take care of capacity issues between now and then, but we do not think it is necessary to be spending the big dollars today on the

就零售增長 4% 而言，這確實是競爭和經濟的結合，我認為這兩者肯定存在激烈的價格競爭，尤其是低端市場，使用率更高的客戶具有極大的價格競爭力。只是基本的經濟狀況在很大程度上影響了我們對降低客戶的轉向，我們認為我們看到的轉向比其他情況下的轉向要多得多，這些都是關鍵問題。至於這項業務的資本要求。我們正在推遲完全數字轉換，直到希望價格下降到那裡，並且在我們必須降低兩者之間的價格之前，我們今天不會感到任何壓力。我認為我們正在考慮再過 12 或 24 個月才能在該領域做出任何重大決定。當然，我們仍會不時投入資金改善覆蓋範圍，解決容量問題，但我們認為今天沒有必要在

these three types of conversions.

這三種類型的轉換。

Gotcha, and then one follow-up question on the wireless side. As you look at kind of prepaid versus postpaid going forward should we see any type of real difference in kind of the net add or you know at least on your strategic thoughts of adding prepaid versus postpaid? Should we see prepaid continue to become a less part of the base or will you start accelerating that as it looks like postpaid growth slows down and if time, can you talk a little bit about that?

明白了，然後是無線方面的一個後續問題。當你看一下預付費和後付費的未來時，我們是否應該看到淨增加類型的任何類型的真正差異，或者你至少知道你增加預付費和後付費的戰略思想？我們是否應該看到預付費繼續成為基礎的一部分，或者你會開始加速它，因為它看起來像後付費增長放緩，如果時間，你能談談這個嗎？

I believe that we are going to see prepaid remain in the area that it is in today. I don't think that we will see a lot growth in prepaid; we are focused more on the postpaid our digital plans. However, with the economy the way it is I think there is some pressure for folks to go more to prepaid in the current economic environment. We may see a short term up kick in prepaid not just for CenturyTel but across the board in this industry but our long term focus is on the postpaid customers.

我相信我們將看到預付費保留在今天的區域。我不認為我們會看到預付費有很大的增長；我們更專注於後付費數字計劃。然而，隨著經濟的發展，我認為在當前的經濟環境下，人們有一些壓力要更多地使用預付費。我們可能會看到預付費的短期增長，不僅是 CenturyTel，而是整個行業的整體，但我們的長期重點是後付費客戶。

And finally embedded in your assumptions or your guidance on the wireless side of the business at this point. What kind of pricing rise or decline are you expecting in the roaming business and what is your confront level or how much of that is contracted in through this year?

最後嵌入您的假設或此時您對業務無線方面的指導。您預計漫遊業務的價格會出現什麼樣的上漲或下跌，您的面臨水平是多少，或者今年簽約的價格是多少？

We are at 35 cents average per minute for roaming today and we expect to be at 25 cents there about at year end and there will be some decline after that, but we have all that decline in the numbers for the year right now going down to 25% is reflected in our guidance.

我們今天的平均漫遊費用為每分鐘 35 美分，我們預計到年底將達到 25 美分左右，此後會有所下降，但我們今年的所有數字都在下降，現在下降到25% 反映在我們的指導中。

That is only that minutes continue to grow at about 25% of rate, which is what they have grown over the last couple of years.

只是分鐘數繼續以大約 25% 的速度增長，這是他們在過去幾年中的增長速度。

Right.

正確的。

Yeah. Okay, thank you. Rex Mitchell of BBT capital markets, please state your question.

是的。好的謝謝。 BBT資本市場的Rex Mitchell，請說出你的問題。

Good morning. I am wondering if the DSL growth that we saw during this quarter will be continuing what's your expectation there and if we can see any increased expenses because of that rather rapid increase in DSL additions?

早上好。我想知道我們在本季度看到的 DSL 增長是否會繼續，您在那裡的預期是什麼？我們是否可以看到由於 DSL 增加的相當快的增長而導致的任何支出增加？

Rex, we do expect continued growth in DSL I will ask Karen to address that in more detail.

Rex，我們確實希望 DSL 繼續增長，我會請 Karen 更詳細地解決這個問題。

Yes, as I stated before we are taking the price up for our new customers $10.00, but we think that is the right thing to do in terms of the value proposition that we have to offer our customers we still believe on the quarterly numbers that will be in five to six range per quarter thousand per quarter net add. In terms of network cost as I spoke earlier. We basically have the bandwidth that we needed to purchase since the cost for customer will only be coming down in network expense and we feel pretty good about where DSL is headed and very optimistic about that opportunity.

是的，正如我之前所說，我們將新客戶的價格提高 10.00 美元，但我們認為，就我們必須為客戶提供的價值主張而言，這是正確的做法，我們仍然相信季度數字會每季度淨增五到六千人。正如我之前所說，就網絡成本而言。我們基本上擁有我們需要購買的帶寬，因為客戶的成本只會在網絡費用方面下降，我們對 DSL 的發展方向感到非常滿意，並且對該機會非常樂觀。

Mary Berg of Morgan Stanley, please state your question.

摩根士丹利的 Mary Berg，請說出你的問題。

Okay, thank you. I was wondering if you could give us little bit of color in terms of the benefit that you will receive from resolving the issue on the depreciation rate in the Verizon property and also if you could update us on your CAPEX guidance for the year given the weaker economic outlook. Thank you.

好的謝謝。我想知道您是否可以就解決 Verizon 財產折舊率問題所獲得的好處給我們一些顏色，以及您是否可以向我們更新您今年的 CAPEX 指南，因為較弱經濟前景。謝謝。

Mary we couldn't hear the first part of your question I am sorry.

瑪麗，我們無法聽到您問題的第一部分，很抱歉。

Sorry I was wondering if you could give us a little bit more color on the financial benefit from resolving the depreciation rate issue on the Verizon property and also and if you give us a

抱歉，我想知道你是否可以通過解決 Verizon 財產的折舊率問題給我們更多的經濟利益，如果你給我們一個

little bit of update on your CAPEX guidance give the softer economic outlook.

對您的 CAPEX 指南進行一些更新可以使經濟前景更加疲軟。

Okay Stewart you want to answer this?

好的斯圖爾特你想回答這個問題嗎？

Yeah the change in the depreciation experienced was actually in the original guidance that we gave, and we were successful at getting that change made effective really the first of the year. In terms of the capital budget for this year. We really are not changing the guidance there we still think somewhere between $525 and $550 million. Again about $400 million of that in the local exchange business and telephone business including the $20 to $30 million relating to DSL build out in the markets. About $70 million in wireless, we may come off the $10 to $15 million just dependent upon what we see going forward with respect to customer growth and revenue. About $20 million in a select business, $10 million to complete the Michigan fiber ring, this primarily the leg into Chicago. About $10 million in our internet basis that is a total of 510 and then somewhere between $50 and $40 million of other potential projects that business plans have not been approved yet on.

是的，折舊的變化實際上是在我們給出的最初指導中，我們成功地讓這一變化在今年的第一年真正生效。在今年的資本預算方面。我們真的沒有改變我們仍然認為在 525 到 5.5 億美元之間的指導。同樣，其中約 4 億美元用於本地交換業務和電話業務，其中包括與 DSL 相關的 20 至 3000 萬美元在市場上的建設。大約 7000 萬美元的無線業務，我們可能會減少 10 到 1500 萬美元，這取決於我們對客戶增長和收入的展望。大約 2000 萬美元用於特定業務，1000 萬美元用於完成密歇根光纖環路，這主要是通往芝加哥的路段。我們的互聯網基礎上大約有 1000 萬美元，總共有 510 個，然後是商業計劃尚未批准的其他潛在項目，大約在 50 到 4000 萬美元之間。

Okay, thank you. Roger Sax of [Capital A Financials], please state your question.

好的謝謝。 [Capital A Financials] 的 Roger Sax，請陳述您的問題。

Thank you. Most of my questions have already been answered so I have a few house keeping things. I did not catch what was said before what the losses were with in the Select and DSL operations as well as what the actual access line count is in the local business at the end of the quarter and I guess also was there any impact to your local exchange, or

謝謝。我的大部分問題都已經得到解答，所以我有一些家務。我沒有聽清之前所說的，Select 和 DSL 運營中的損失是多少，以及本季度末本地業務的實際接入線路數量是多少，我想這對您的本地業務是否也有影響交換，或

the select operations from the FCC ruling last week of reciprocal conversation?

從上週的 FCC 裁定中選擇操作？

Hey Roger first of all the internet business, we had a total loss include the DSL of $2.8 million loss there and in the Select side a loss of $2.1 million from the select side of the business. And the access lines at the end of the quarter were 1,803,062 and that does not include the access lines that we have in the select business.

嘿，羅傑，首先是互聯網業務，我們的總虧損包括 DSL 損失 280 萬美元，在選擇方面，業務選擇方面損失 210 萬美元。本季度末的訪問線路為 1,803,062，這不包括我們在精選業務中擁有的訪問線路。

How many lines are there in the selects business?

selects業務有多少行？

The access lines in the select business are 1,239.

選擇業務中的訪問線路為 1,239。

Okay and in terms of the FCC ruling any impact anywhere from that?

好的，就 FCC 裁決而言，這有什麼影響嗎？

This is David Cole. As far as the impact, we do not have a quantified as far as the total company basis, but I think a good example of that potential impact would be the Arkansas's DP plan that Glen talked about earlier and the vast majority of those mentioned on those plans are for internet service which would fall under that ruling and the rate that we would pay as far as the cost for determining that would be much lower.

這是大衛科爾。就影響而言，我們沒有對整個公司的基礎進行量化，但我認為這種潛在影響的一個很好的例子是 Glen 早些時候談到的阿肯色州的 DP 計劃以及其中提到的絕大多數計劃計劃是針對互聯網服務的，這將屬於該裁決的範圍，並且我們將支付的費率就確定該裁決的成本而言要低得多。

Okay, thank you very much.

好的，非常感謝。

Donna Jaggers of Invesco, please state your question.

Invesco 的 Donna Jaggers，請陳述您的問題。

Hi I just said had a few quick follow-up questions on your Wisconsin situation. What exactly is the interstate access charge now, what are you guys filing for, what is the sort of time on the filing?

您好，我剛才說有幾個關於您威斯康星州情況的快速跟進問題。現在州際通行費到底是多少，你們在申請什麼，申請時間是什麼時候？

Yeah Donna, the current charges are half cent per minute and we are looking to three to three and half. It is what we are filling for.

是的，唐娜，目前的收費是每分鐘半美分，我們期待三到三點半。這就是我們要填補的。

And that would come out of the universal service fund or is there state pool? Your consumers obviously would pay that?

那會來自普遍服務基金還是有狀態池？你的消費者顯然會為此買單？

Donna this is just on the intrastate side.

唐娜，這只是在州內。

Right.

正確的。

Basically the inter exchange carriers would pay it on the intrastate side.

基本上，交換承運人會在州內支付。

Okay is there any dates set on hearings on this?

好吧，有關於這方面的聽證會的日期嗎？

Actually there is one more point that three and a half cents that we would probably ask for is basically what the commission just gave us in the former Ameritech properties. So we have really good potential to be able to get the three and half cents that is not different in the rights that other rural providers charge for intrastate access in Wisconsin.

實際上還有一點，我們可能會要求的三分半錢基本上就是佣金剛剛給我們的前 Ameritech 物業。因此，我們有很大的潛力能夠獲得三美分半的費用，這與威斯康星州其他農村供應商對州內訪問收取的權利沒有什麼不同。

Okay any date on the hearings.

好的，聽證會的任何日期。

We expect to files within 30 days. We had to wait until we had three months of history, before we could file. We have that we expect to file within 30 days. We are hoping to have this resolved somewhere during the third quarter.

我們希望在 30 天內提交文件。我們必須等到我們有三個月的歷史記錄，然後才能提交。我們希望在 30 天內提交。我們希望在第三季度的某個地方解決這個問題。

Great! Thank you. 00[Zorra Yuzoffo of Peach Tree Acid Management], please state your question.

偉大的！謝謝。 00【桃樹酸管理的Zorra Yuzoffo】，請說出你的問題。

My question was regarding the wireless side of the business, I am trying to understand where the churn is coming from, now that are very high turnover with the prepaid, but if you could talk a little bit about what you think is causing the post patron to be so high?

我的問題是關於業務的無線方面，我試圖了解流失的來源，現在預付費的營業額非常高，但如果你能談談你認為是什麼導致了郵寄顧客要這麼高？

Hi this is Karen. In terms of the churn, we saw the churn mainly coming with the $20.00 and below customer and in particular Verizon was very aggressive first quarter of their $19.99 at 4,000 minutes. We traditionally focused on the $30 type and that kind of customer. We have increased some of our focused and retention efforts in that category. In addition, we did have a pretty

嗨，這是凱倫。就客戶流失而言，我們看到客戶流失主要來自 20.00 美元及以下的客戶，尤其是 Verizon 在第一季度的 4,000 分鐘時以 19.99 美元的價格非常激進。我們傳統上專注於 30 美元的類型和那種客戶。我們在該類別中增加了一些重點和保留工作。此外，我們確實有一個漂亮的

significant economic hit in the Michigan/Great Lakes area we had of course the impact of the auto industry and the unemployment there has gone up from 2.7% to 4.1%. We had you know significant lay offs in those communities from the auto also WorldCom is in Jackson of course they have had quite a bit of lay offs and the other key Matrix that was pretty interesting was in the Louisiana/Mississippi, the Gaming Commission did state that their consumer sending was down 25% in this particular region of that country.

密歇根/五大湖地區的經濟受到重大打擊，我們當然受到汽車行業的影響，那裡的失業率從 2.7% 上升到 4.1%。我們讓你知道這些社區的大量裁員來自汽車行業，WorldCom 也在傑克遜，當然他們有相當多的裁員，另一個非常有趣的關鍵矩陣是在路易斯安那州/密西西比州，博彩委員會確實聲明他們在該國這個特定地區的消費者發送量下降了 25%。

Okay, thank you. 00[Jeff Dornhoff of Horn Capital Management], please state your question. 00:47:05 [Charles Pluckon] of Steven Incorporated, please state your question. 00:47:09 CHARLES PLUCKON: Hi couple of questions on DSL with that Arkansas situation on the dial-ups are those places of DSL ready and you would think that if somebody is camping out on the line for 20,000 or 30,000 minutes that you would just give him a free DSL and make out on that?

好的謝謝。 00[Horn Capital Management 的 Jeff Dornhoff]，請說出你的問題。 00:47:05 Steven Incorporated 的 [Charles Pluckon]，請說出您的問題。 00:47:09 CHARLES PLUCKON：嗨，關於 DSL 的幾個問題，阿肯色州的撥號情況是 DSL 準備就緒的地方，你會認為如果有人在線上露營 20,000 或 30,000 分鐘，你會只是給他一個免費的 DSL 並從中得到好處？

Yeah we have actually in terms of DSL dial ups we are getting that deployed and a good chunk of that was deployed in the first quarter. We have a few communities, very small communities that we are addressing in terms of the economics of that, but you are right it was just getting those things deployed first quarter.

是的，實際上我們已經部署了 DSL 撥號，其中很大一部分是在第一季度部署的。我們有一些社區，非常小的社區，我們正在解決這些社區的經濟問題，但你是對的，它只是在第一季度部署了這些東西。

So will this wind up being, pretty much if not a one quarter hit one, a pretty short lived issue, because won't these people have to convert over to DSL or end up paying higher rates within this year?

那麼，如果不是四分之一命中的話，這最終會成為一個相當短暫的問題，因為這些人不會在今年內轉換到 DSL 或最終支付更高的費用嗎？

) That is what we expect Charles, and we are going to be marketing heavily

) 這就是我們對查爾斯的期望，我們將大力營銷

our DSL in these communities, showing them that the opportunity is here with a higher speed better service and approximate substantial higher rate than what they could be paying today so that is the major factor and we do believe that the short term hit, we are going to overcome this and in the near term it is something strange and unusual here that basically is really driven by the amount of growth and internet usage.

我們在這些社區中的 DSL，向他們展示機會就在這裡，速度更快，服務更好，費率也比他們今天支付的要高得多，所以這是主要因素，我們相信短期會受到影響，我們會為了克服這個問題，在短期內，這裡出現了一些奇怪和不尋常的事情，基本上實際上是由增長量和互聯網使用量驅動的。

If I could dive a little further under DSL in general, it sounds like with your new modem pricing and service fee that you will completely offset the cost of the modem. Then what about other cost if we would divide them into a sort of nonrecurring cause and then ongoing cause versus revenues, what I mean by that is I know like the cost of the truck rolls or any other start up cause that you have customer support and anything like that and then on an ongoing basis will your new 45% lower and that will cost then make a customer who is installed successfully and using the service incrementally profitable?

如果我可以在一般 DSL 下進一步深入，聽起來您的新調製解調器定價和服務費將完全抵消調製解調器的成本。那麼其他成本呢，如果我們將它們分為一種非經常性原因，然後是持續性原因與收入，我的意思是我知道像上門服務或任何其他啟動原因的成本，你有客戶支持和類似的東西，然後在持續的基礎上，你的新 45% 會降低嗎？這將使成本降低，然後使成功安裝並使用該服務的客戶逐漸獲利？

Yeah, I think you know when you add all that the bottom line is that we are optimistic about being positive fourth quarter in 2002, a minimum. So we feel good about where we are driving those cost and let your modem cost coming down now there is a competition, our cable competition from quarter to quarter has increased last quarter or fourth quarter was about 20%. This quarter is about 23.5%. There is a factor of competition that we have to be aware of as we fine-tune this model.

是的，我想你知道當你把所有這些都加起來時，底線是我們對 2002 年第四季度至少是積極的持樂觀態度。因此，我們對推動這些成本的地方感到滿意，讓您的調製解調器成本下降，現在有競爭，我們的電纜競爭從一個季度到另一個季度在上個季度或第四季度增加了大約 20%。本季度約為23.5%。在微調此模型時，我們必須意識到競爭因素。

What we found out too Charles is that the more we can load the pipe with customers, the more profits there are going to be, so it is incrementally more profitable with these customers, but you need to drive the cost of the network down to really bring the margins that you expect. So that is our goal to get more customers on the pipe here.

Charles 我們也發現，我們可以為客戶加載的管道越多，利潤就會越多，因此這些客戶的利潤會逐漸增加，但您需要將網絡成本真正降低到帶來您期望的利潤。因此，我們的目標是在這裡吸引更多客戶。

Okay, the network cost side of this, is this what you are paying for long haul bandwidth or?

好的，這方面的網絡成本，這是您為長途帶寬支付的費用嗎？

Yes, it is what we pay for a long haul as well as what we pay to Intel co. Okay so this is the on the Internet side what we would pay to Intel co and what we pay to back calling to the world.

是的，這是我們長期支付的費用以及我們向英特爾公司支付的費用。好的，這就是我們在互聯網方面向英特爾公司支付的費用以及我們為回饋世界而支付的費用。

Pay to Intel co, what do you mean?

Pay to Intel co，什麼意思？

Well, in this case, most of it would be CenturyTel, but it is the regulated side that we pay to.

好吧，在這種情況下，大部分是 CenturyTel，但我們支付給受監管方。

And then could you tell us what do you mean by DSL ready. Does that mean that there is the [D slam] in the central office and all the customers at 1.2 million lines need to do is call up our order net or what does DSL ready really mean?

然後你能告訴我們你所說的 DSL 準備好是什麼意思嗎？這是否意味著中央辦公室有 [D slam]，所有 120 萬行的客戶需要做的就是調用我們的訂單網絡，或者 DSL 就緒到底是什麼意思？

DSL ready means that we have enabled DSL and the trigger point there is that D [slant] in the central office or the remote.

DSL 就緒意味著我們已啟用 DSL，觸發點是中央辦公室或遠程的 D [傾斜]。

And that does not mean Charles, that there could be some clean up on some lines at the outside plant that needs to be done. There are sometimes that cleanups are required but that does mean that those customers within 18,000 feet of the office where the [D slam] basically exist.

這並不意味著 Charles 需要對外部工廠的某些線路進行清理。有時需要進行清理，但這確實意味著 [D slam] 基本上存在於辦公室 18,000 英尺範圍內的那些客戶。

And in that 1.2 million lying areas are you marketing to all of those customers?

在這 120 萬個躺著的區域中，您是否向所有這些客戶進行營銷？

Yes, you know of course the most focused approach is where we use our direct mail campaign but we pull the customers that we know are provisional from our plan support

是的，你當然知道最集中的方法是我們使用我們的直郵活動，但我們從我們的計劃支持中拉出我們知道是臨時的客戶

system, so we know exactly who we are targeting the customers that when we touch them they can't be provisioned, it is more efficient that way.

系統，所以我們確切地知道我們的目標客戶是誰，當我們接觸他們時，他們無法被提供，這樣效率更高。

And then one last question on this regard is that, I would presume that you would obviously you would know which of these people are staying on the line for 20,000 minutes a month? Are you targeting them like specifically to replace their dial-up with a DSL because if it is a nickel a minute, you are paying $1,000 a month, aren't you to support that $20.00 customer?

關於這方面的最後一個問題是，我假設您顯然會知道這些人中有哪些人每月在線時間超過 20,000 分鐘？您是否專門針對他們用 DSL 替換他們的撥號上網，因為如果每分鐘五分錢，您每月支付 1,000 美元，難道您不支持那個 20.00 美元的客戶嗎？

Yeah, the challenge there is the balance and dealing with regulated information that you get from the Telco side of the business to facilitate something on a deregulated or DSL side of business. So essentially capping and deploying the dial up as well as the DSL and marketing in general to those areas through the package approach is what we plan on doing.

是的，挑戰在於平衡和處理您從業務的 Telco 方面獲得的受監管信息，以促進解除管製或 DSL 方面的業務。因此，從本質上講，我們計劃通過打包方法來限制和部署撥號以及 DSL 和一般營銷到這些領域。

Okay, thank you. 00[Dimitiri Keagen of Gabalian and Company], please state your question. 00:53:23 DIMITRI KEAGAN: Good morning guys. Just a follow-up to the same question, what is the number of the ISP subscribers that are using so many minutes and who is the ISP provider essentially?

好的謝謝。 00[Gabalian and Company 的 Dimitiri Keagen]，請陳述您的問題。 00:53:23 DIMITRI KEAGAN：大家早上好。只是對同一個問題的跟進，使用這麼多分鐘的 ISP 訂戶的數量是多少，ISP 提供商本質上是誰？

[Dimitri] we really do not know who the ISP provider is, you know, outside of our market that these numbers are going to or the calls are going to.

[Dimitri] 我們真的不知道 ISP 提供商是誰，你知道，在我們的市場之外，這些號碼或電話將要發送給誰。

A lot of it may be like in Little Rock, it might be an AOL like Fort Smith there are adjacent markets where they can call into a POP.

很多可能就像在小石城，它可能是像史密斯堡這樣的 AOL，那裡有相鄰的市場，他們可以在那裡打電話給 POP。

Do you I mean this is kind of high pathetical question but do you think that when one of another independent inaudible company that is essentially based in that market, let you buy the 00Verizon property in that market that they were aware of all these issues? I know it is a kind speculative, but I mean.

你是說這是一個非常可悲的問題，但你認為當另一家基本上位於該市場的獨立無聲公司之一讓你購買該市場的 00Verizon 財產時，他們知道所有這些問題嗎？我知道這是一種推測，但我是說。

No I do not think so Dimitri, these numbers are hard to get to as far as the OCP plans, and also it is something that is easy to fix really. It is an issue that has grown rapidly and the initial information that we had the minutes weren't nearly this high when we were reviewing this for acquisition. So it is something that is occurred over the recent months the last couple of years at the most and it is just something that was really unexpected.

不，我不這麼認為 Dimitri，就 OCP 計劃而言，這些數字很難達到，而且確實很容易解決。這是一個發展迅速的問題，當我們審查收購時，我們在會議記錄中獲得的初步信息並沒有這麼高。所以這是最近幾個月最多發生在最近幾年的事情，而且它只是一些真正出乎意料的事情。

And you actually because I do remember when inaudibel was a huge issue probably oh I don't know six, nine, or twelve months ago, inaudible went into arbitration and stopped paying. You are actually paying those out as you incur correct?

你實際上是因為我確實記得 inaudibel 什麼時候是一個大問題可能哦我不知道在六、九或十二個月前，聽不見進入仲裁併停止支付。您實際上是在支付正確的費用嗎？

Well we are paying to a pool in Arkansas, that than other carries or all carriers in the state of Arkansas and all the ___ carriers in the state of Arkansas pull out revenues as part of their intrastate revenue requirement. This one is a little different that in most of the ____ cases is where it is more like a select in a local exchange area. These are compensation. These are actually where we are repaying access to for ISB pool that is located outside of our exchange areas but within the calling plan areas for these optional plans.

好吧，我們正在支付給阿肯色州的一個游泳池，而不是阿肯色州的其他承運人或所有承運人以及阿肯色州的所有___承運人將收入作為其州內收入要求的一部分。這個有點不同，在大多數 ____ 情況下，它更像是本地交換區域中的選擇。這些都是補償。這些實際上是我們為 ISB 池支付訪問權限的地方，該池位於我們的交換區域之外，但在這些可選計劃的調用計劃區域內。

Okay. All right, Then on the DSL what is the number of self-installed?

好的。好吧， 那麼關於DSL自裝的數量是多少呢？

The region with the lowest number in terms of self-install is 88%. So that is our lowest region, from there it goes up into the low 90's. Still we are having success in that particular area.

自行安裝數量最少的地區為 88%。所以這是我們最低的區域，從那裡它上升到 90 年代的低點。我們仍然在那個特定領域取得了成功。

And that actually is not people who not only want to self-install but also actually is successfully at self-install. Correct.

而這其實不是既想自裝又實際自裝成功的人。正確的。

That does not take into account that they may have called the help desk.

這沒有考慮到他們可能已經致電服務台。

Okay, but it does not involve the help or anything like that.

好的，但它不涉及幫助或類似的事情。

No it does not involve the inaudible anything like that.

不，它不涉及諸如此類的聽不見的東西。

And then what kind of a big picture question we talked about the potentially different sources of financing and theoretically thinking about brining in an outside investor, that operates at the company level or various options I mean where do we stand in that regard and do you see any changes in terms of this select plans given the way the economy is and also on the wireless side it seems like I mean the competition does not seem to be going away and it would only intensify, I mean as we retry for higher penetration and how, I asked this question before, so I am just going to repeat myself, we make that a strategic action, but do you think that you think that you could be better off focusing on your kind of core islet properties and the capital out of the wireless if you just maybe sell it to Sprint or do something with that?

然後我們討論了什麼樣的大局問題，討論了潛在的不同融資來源，並從理論上考慮引入外部投資者，在公司層面運作或各種選擇，我的意思是我們在這方面的立場，你看到了嗎考慮到經濟狀況以及無線方面的選擇計劃方面的任何變化似乎我的意思是競爭似乎並沒有消失而且只會加劇，我的意思是當我們重新嘗試更高的滲透率以及如何，我之前問過這個問題，所以我要重複一遍，我們將其作為一項戰略行動，但你認為你認為你可以更好地關注你的核心小島財產和資本無線，如果你只是把它賣給 Sprint 或者用它做點什麼？

Hey Dimitri, first of all, on the future acquisition, we talked about a possible partner, but right now we do not see anything on the rise that makes that necessary and we are making out that now and we are increasing our capacity every quarter every month basically. That is an option for us. There is certainly a lot of interest out there and financial investment to partner with the like of CenturyTel for especially access line investment or other

嘿 Dimitri，首先，關於未來的收購，我們談到了一個可能的合作夥伴，但現在我們沒有看到任何有必要的東西在增加，我們現在正在做，我們每個季度每個季度都在增加我們的產能月基本上。這是我們的一個選擇。肯定有很多興趣和金融投資與 CenturyTel 合作，特別是接入線投資或其他

communications related opportunities, we do not see that is a necessity today but it is currently an option. The account bases on the select question, use the account changes and plan day after day we could really assess and initial rolled out in the two markets here in North Louisiana and we are still continuing that roll out. With that roll out, we are expected to lose 15 million dollars issue, start up losses but the results are on the track here and we feel very positive about our experience in the Select Arena. Holly and the wireless issues certainly the competition is great and we think that we have proven our ability to see on a regional basis and on a regional pricing plans with these kind of service but we will continue that mode and we are always looking at all of our options with our business. I think that will never be an option but we feel very positive about the wireless business today. Although we have to work this roaming issue and competition is going to continue throughout the state and our plans remain the same but we believe in original plan, original pricing plan, original focus and name recognition and the areas that we are in give us a very strong position in these kind of markets today.

與通信相關的機會，我們認為這在今天不是必需的，但目前是一種選擇。該帳戶基於選擇的問題，日復一日地使用帳戶更改和計劃，我們可以真正評估並初步在北路易斯安那州的兩個市場推出，我們仍在繼續推出。隨著這一推出，我們預計將損失 1500 萬美元的發行，開始虧損，但結果已經步入正軌，我們對我們在 Select Arena 的體驗感到非常積極。 Holly 和無線問題當然競爭很激烈，我們認為我們已經證明了我們有能力在區域基礎上看到這些服務的區域定價計劃，但我們將繼續這種模式，我們一直在關注所有我們對業務的選擇。我認為這永遠不會成為一種選擇，但我們對當今的無線業務感到非常樂觀。雖然我們必須解決這個漫遊問題，競爭將在整個州繼續進行，我們的計劃保持不變，但我們相信原始計劃、原始定價計劃、原始焦點和知名度以及我們所處的領域給了我們一個非常今天在這類市場中的強勢地位。

What type of return on invested capital do you earn and your wireless business versus your inaudible.

您賺取的投資資本回報率類型以及您的無線業務與您的無聲業務相比。

I do not have those exact numbers for the return on capital. Basically, we look on the wireless side of course a lot of it is regulated instead we all have alternate rate plans, we have alternate regulation in most cases we are exceeding those rates of return. We think we are

我沒有資本回報率的確切數字。基本上，我們當然在無線方面看很多它是受監管的，而不是我們都有替代費率計劃，在大多數情況下我們有替代監管，我們超過了這些回報率。我們認為我們是

probably above that overall on the wireless side, have been above those rates of returns, I do not have the exact numbers here but it has been historically higher on the wireless side of business.

可能高於無線方面的總體回報率，我在這裡沒有確切的數字，但從歷史上看，無線業務方面的回報率更高。

DIMITRI) In any thoughts on share

DIMITRI) 關於分享的任何想法

No today. We think we are going to have good opportunities for acquisitions in the coming months and that is what we are looking for. We do not think that it would be strategically today even though we strongly believe our stock prices are substantially under value. Speaking of buying back stock, we are trying to get ready for the future acquisitions in the near term.

沒有今天。我們認為我們將在未來幾個月內有很好的收購機會，這就是我們正在尋找的。儘管我們堅信我們的股價大大低於價值，但我們認為今天不會有戰略意義。說到回購股票，我們正在努力為近期的未來收購做好準備。

Okay. Thank you. 01John Brite of Johnson Rice, please state your question.

好的。謝謝。 01Johnson Rice 的John Brite，請說出你的問題。

Thanks. I am going to go back to the DSL, if I can? What was the price for the modem, if anything, that you were charging prior to the 120 and that is in place today, also this $35.00 that is also in place today, question. And then the percentage that you have mentioned that you are going to increase the pricing plan of $10.00, but only in places where the competition does not exist, I had slipped away for a bit. That is going to be, where does competition not exist, so that what percentage of DSL already launched for that and then the last thing on this and that networking expenses down to that again to give some more color on where you may make some improvements looking out into the mid portion of the year.

謝謝。如果可以的話，我會回到 DSL 嗎？調製解調器的價格是多少，如果有的話，你在 120 之前收費並且今天已經到位，這也是今天也到位的 35.00 美元，問題。然後是您提到的您將增加 10.00 美元的定價計劃的百分比，但僅在不存在競爭的地方，我已經溜走了一點。那將是，哪裡不存在競爭，因此已經為此推出了多少百分比的 DSL，然後最後一件事和網絡費用再次降低到那個，以便為您可以在哪些地方做出一些改進提供更多顏色看起來進入今年的中期。

I'll answer one question and I will let Karen answer the other. We have competition in total of about 22 to 23%, cable competition that is 22 to 23% of the market, since most cable modem competition so that you the idea of the percentage that we are looking at there ii is not real substantial.

我會回答一個問題，我會讓凱倫回答另一個問題。我們總共有大約 22% 到 23% 的競爭，電纜競爭佔市場的 22% 到 23%，因為大多數電纜調製解調器競爭所以你對我們在那裡看到的百分比的想法 ii 並不真正重要。

In terms of the modem cost, we currently were basically getting $50 from the customer and in our range was running cost wise anywhere from $260 to $230 last year, so we were ranging anywhere from of you know from of $175 to the $130, $140 subsidairy on that, so that is going to make a significant difference. What are your other questions?

就調製解調器成本而言，我們目前基本上從客戶那裡得到 50 美元，而在我們的範圍內，去年的運行成本在 260 美元到 230 美元之間，所以我們的範圍從你知道的 175 美元到 130 美元，140 美元的補貼就此而言，這將產生重大影響。你還有什麼問題？

The other one regarded to network expense associated with that, what specific aspect are you going to be able to do regarding the network extension associated with DSL, I am looking our for the mid portion of the year, what about those?

另一個關於與此相關的網絡費用，關於與 DSL 相關的網絡擴展，您將能夠做什麼具體方面，我正在尋找我們的年中部分，那些呢？

What we is going to drive the decrease in that is the increase in the customers you know we deploy the bandwidth we deploy the components. On the Telco side and as we look at what we pay out to Telco that will continue to come down as we get more customers on Now we do have what is mainly to back bone to the, right now we are going to the union net, so I do not know if I have addressed your question specifically, we do have some opportunity to continue to aggregate traffic is what we do and so we have a couple of T1's out there and that can move out to disconnect those T1s and replace those with higher end pipe that could be a three. But that is what you will see, changing terms of the migration to the lower cost and by the way it just not our internet traffic it would be our long distance traffic any of our traffic what carry we can aggregate into our own backbone.

我們要推動減少的是你知道我們部署帶寬的客戶的增加，我們部署組件。在電信公司方面，當我們看到我們支付給電信公司的費用會隨著我們吸引更多客戶而繼續下降現在我們確實有主要支持骨幹的東西，現在我們要去工會網，所以我不知道我是否專門解決了你的問題，我們確實有機會繼續聚合流量，這就是我們所做的，所以我們有幾個 T1，可以移出以斷開這些 T1 並用高端管道可能是三個。但這就是您將看到的，將遷移條款更改為更低的成本，順便說一句，它不僅僅是我們的互聯網流量，而是我們的長途流量，我們可以聚合到我們自己的骨幹網中的任何流量。

Any sort of idea that you can give us on what type of cannibalization that is having on the second lines.

您可以向我們提供有關第二行中的同類蠶食類型的任何想法。

On the second line, we turned about 888 numbers that we believe to first quarter on second line and correlating that with DSL to the

在第二行，我們將我們認為的大約 888 個數字轉換為第二行的第一季度，並將其與 DSL 關聯到

best of our ability.

盡我們所能。

Thanks.

謝謝。

David [Danazo] of Merrill Lynch, please state your question.

Merrill Lynch 的 David [Danazo]，請說出你的問題。

Hi. Thank you. You have noticed any other operations line revenue line in the gross there was a little slower than I had expected looks like the LD, you know It might have been close to flat quarter over quarter, can you talk about that and talk about expectations on going forward?

你好。謝謝。你已經註意到任何其他運營線的總收入線比我預期的要慢一點看起來像 LD，你知道它可能已經接近季度持平，你能談談這個並談談對未來的期望向前？

We had good long distance field, first of all, we did shut down a call center last year that may be part of the numbers, and Stewart is looking for the number here.

我們有很好的長途領域，首先，我們去年確實關閉了一個呼叫中心，這可能是數字的一部分，斯圖爾特正在尋找這裡的數字。

Ladies and Gentlemen, if there are any additional question, please press the one at this time, remember to pick up your handset before doing so.

女士們，先生們，如果還有什麼問題，請在這個時候按那個，記得先拿起聽筒再說。

[Charles Pluckon] of Stevens Incorporated please state your follow-up question.

Stevens Incorporated 的 [Charles Pluckon] 請說明您的後續問題。

Hi. On these dial-up customers in Arkansas for this one more time, was this is my failure to understand. Hope you are with me. You are paying off that nickel of minute reciprocal cost, right?

你好。對於阿肯色州的這些撥號客戶來說，這一次，這是我無法理解的。希望你和我在一起。您正在償還微小的互惠成本，對嗎？

We are paying it to the pool basically, the CCL pool.

我們基本上是將它支付給 CCL 池。

Okay. This might have been asked and answered and I just didn't listen carefully enough. How long will that continue? I thought that the FCC made some rules on reciprocal cost that does essentially eliminates this over time.

好的。這可能已經被問到並得到了回答，但我只是沒有仔細聽。這會持續多久？我認為 FCC 制定了一些關於互惠成本的規則，隨著時間的推移，這些規則從根本上消除了這一點。

Those have not been approved, that is just a prospective order. Again this is not the local, this is more the access and CCL issue than the state of Arkansas at this point.

那些還沒有被批准，那隻是一個預期的訂單。同樣，這不是本地問題，此時更多的是訪問和 CCL 問題，而不是阿肯色州。

I am sorry a CC what

不好意思抄送什麼

I am sorry. Carry Common Line Pool within the state of Arkansas for intrastate access. It is not the local Charles, not the reciprocal comp issues that I think you are referring to.

對不起。在阿肯色州內攜帶 Common Line Pool 以進行州內訪問。我認為您指的不是本地查爾斯，也不是互惠補償問題。

Okay so these users are dialing an ISP what in there regional calling area and then what there dialing it to what another phone company or?

好吧，這些用戶在區域呼叫區撥打 ISP 的電話，然後又撥到另一家電話公司或電話公司？

Actually, a good example would be Jacksonville Arkansas calling into Little Rock, which is in the same ladder but is outside of our exchange area. So, they are actually calling either

實際上，一個很好的例子是阿肯色州傑克遜維爾呼叫小石城，它在同一個階梯上，但在我們的交換區之外。所以，他們實際上是在打電話

an SBC or another exchange carrier and an ISP located in that service area.

SBC 或其他交換運營商以及位於該服務區域的 ISP。

Okay. And so you are paying essentially like a long distance access fee?

好的。因此，您實際上支付的是長途接入費？

I am sorry?

對不起？

Okay. you are paying like a long distance access charge?

好的。你支付的是長途接入費嗎？

That is right. paying an access along with also an additional fee per minute charge to the Carry Common Line Pool within that state.

沒錯。向該州的 Carry Common Line Pool 支付訪問權限以及每分鐘的額外費用。

I see. And you can, and the problem was just going and going straight to these dial ups customers and marketing DSL through them is that your DSL operation is non-regulated you have got a separate subsidiary, are you doing this?

我懂了。你可以，問題是直接向這些撥號客戶和通過他們營銷 DSL 的是你的 DSL 操作不受監管你有一個單獨的子公司，你在這樣做嗎？

No. There is not a problem someone was asking earlier; we just have to be careful on how we use the information. Thirdly we have just deployed dial ups in most of these areas in the first quarter so we will be aggressively marketing our dial-ups to those communities.

不，沒有人之前問過的問題；我們只需要小心我們如何使用這些信息。第三，我們剛剛在第一季度的大部分地區部署了撥號服務，因此我們將積極向這些社區推銷我們的撥號服務。

Am I right to think them from what I have heard that this is not the case of say like a select affiliated with an ISP going out in saying ah hah you know there is honey product it called a CenturyTel and if we can go out and produce a bunch of people to dial up our ISP you know we can extract a few million dollars out of CenturyTel until they figure it out and shut us down.

根據我所聽到的，我是否認為他們是正確的，這不是像 ISP 附屬的選擇那樣說啊哈你知道有一種叫做 CenturyTel 的蜂蜜產品，如果我們可以出去生產一群人撥通我們的 ISP，你知道我們可以從 CenturyTel 榨取幾百萬美元，直到他們弄清楚並關閉我們。

There could be some isolated examples of a select of within those areas but really this is more out the situation

在這些領域內可能有一些孤立的例子，但實際上情況更糟

where you will have an ISP who is within the major metropolitan area but does not have a local POP within that area potentially and those kind of situation that exist and I do not feel that this is where a select has gone in to establish this as a line business although there could be some situation of that I don't think that is the majority of what we are talking about.

您將有一個位於主要大都市地區內的 ISP，但可能在該地區沒有本地 POP，並且存在這種情況，我不認為這是選擇將其建立為業務線雖然可能存在某些情況，但我認為這不是我們正在談論的大部分內容。

I mean the key point to remember is that GTE had not invested in those markets on class service voice mail or dial up.

我的意思是要記住的關鍵點是 GTE 沒有投資於類服務語音郵件或撥號的那些市場。

Yeah. Is like a limited number of ISPs?

是的。好像是有限數量的ISP？

That they are calling into, yeah you know there is probably two or three top ones, yes.

他們正在打電話，是的，你知道可能有兩三個頂級的，是的。

I mean you are thinking you just give those guys some free POPS. Save yourself some money. Well anyway, thank you.

我的意思是你認為你只是給那些傢伙一些免費的 POPS。給自己省點錢。無論如何，謝謝你。

Thank you Charles. Dave Ginowzo had asked a question in terms of long distance revenue, I presume that his comparison was fourth quarter to first quarter. Basically in the first quarter the total revenue was $27.6 million, fourth quarter was $27.4 million. The reason that it is flat all over, we had customer growth is I think partially attributable to fact that you have fewer business days in the first quarter then you do in the fourth quarter because of the month of February there are three fewer days. Our average revenue per customer was down about $1.20 and I think part of that it is

謝謝查爾斯。 Dave Ginowzo 就長途收入提出了一個問題，我認為他的比較是第四季度與第一季度的比較。基本上第一季度的總收入為 2760 萬美元，第四季度為 2740 萬美元。之所以整體持平，我們有客戶增長，我認為部分原因是第一季度的工作日比第四季度少，因為二月份的工作日少了三天。我們每個客戶的平均收入下降了大約 1.20 美元，我認為部分原因是

contributed to the lower number of business days that you have in the quarter. Additionally, probably part of it is due to the fact that the customers were signing up for plans that are somewhat lower right plans too. We have time for one more question.

導致本季度的工作日數量減少。此外，可能部分原因是客戶簽署的計劃也是右下角的計劃。我們還有時間再問一個問題。

Peter Eiffel of Snider Capital Management, please state your question.

Snider Capital Management 的 Peter Eiffel，請陳述您的問題。

Yes Sir, you had mentioned in terms of DSL that 64% of your actual funds are DSL capable but that did not include the clean up of the lines inaudible. What has been your experience so far in terms of cost per line, to clean up those lines to make them DSL capable?

是的，先生，您在 DSL 方面提到過 64% 的實際資金支持 DSL，但這不包括清理聽不見的線路。到目前為止，您在清理這些線路以使其支持 DSL 方面的每條線路成本方面有何經驗？

It has been very low; it has been negligible thus far. Our 50,000-foot loops are not that old. As far as installation and construction concern they have been pretty clean overall.

它一直很低；到目前為止，它可以忽略不計。我們的 50,000 英尺環路並沒有那麼古老。就安裝和施工而言，它們總體上非常乾淨。

And how long does it take from the time a customer calls up and wants DSL service, how long it will take to deploy that?

從客戶打電話需要 DSL 服務需要多長時間，部署該服務需要多長時間？

It is about ten days that includes getting the contract back and we are actually, as I spoke earlier, with the way we are going about our modems, doing away with our contracts, so that should help the process along.

大約需要十天的時間，包括收回合同，正如我之前所說，我們實際上正在處理我們的調製解調器，取消我們的合同，所以這應該有助於這個過程。

Thank you.

謝謝。

Mr. Glover there are no further questions at this time, please continue with any closing comments.

Glover 先生，目前沒有其他問題，請繼續發表結束評論。

Thank you. Although, we are below that we would like to be, we did experience how the revenue and cash flow growth for the quarter and in there are five or six key issues here, effecting our near turn financial performance. I will just briefly review those with you again, the general slow down of the economy, obviously we can't control this, but we do expect the economy to turn around in the coming months. We do know that this slow down has had a substantial impact on our results in this quarter. Also

謝謝。雖然，我們低於我們希望的水平，但我們確實經歷了本季度的收入和現金流量增長，這裡有五六個關鍵問題，影響了我們近期的財務業績。我將再次與您簡要回顧一下，經濟總體放緩，顯然我們無法控制，但我們確實希望經濟在未來幾個月內好轉。我們確實知道這種放緩對我們本季度的業績產生了重大影響。還

the regulatory issues in the state of Wisconsin are impacting us significantly, but should be resolved before year-end. The losses were experiencing in Arkansas associated with the unlimited calling plans, should also be resolved we hope by the third quarter of this year. In total, these regulatory issues represent approximately 15 cents per share. An improvement opportunity on an analyzed basis, and they are significant. We do believe they are controllable and will be resolved. Also we are seeing significantly lower earnings among the consolidated sale of our partnerships, at least in the first quarter again reflecting what we believe to a great degree from our current economy, the issues with the economy today. Finally, delusion from our select and DSL growth condition were impacting earnings, we believe though the initial loss was incurred in these growth initiatives were more than offset by the long-term growth potential that these business offer. We are completely focused on resolving regulatory issues and on driving earning streams in the months ahead, and we are competent we will make significant progress within the coming months and that by year-end we will be on track to meet our growth objectives and meet with returns from the recent Verizon acquisition. We appreciate that your joining us today with call and we look forward to speaking with you in the upcoming months.

威斯康星州的監管問題對我們影響很大，但應該在年底前解決。阿肯色州因無限通話計劃而遭受的損失，我們希望在今年第三季度之前也能解決。總的來說，這些監管問題代表每股約 15 美分。在分析的基礎上的改進機會，它們很重要。我們確實相信它們是可控的並且會得到解決。此外，我們看到我們的合作夥伴關係的合併銷售收入顯著下降，至少在第一季度再次反映了我們對當前經濟的看法，即當今經濟存在的問題。最後，我們選擇和 DSL 增長狀況的錯覺正在影響收益，但我們認為，儘管這些增長計劃產生的初始損失被這些業務提供的長期增長潛力所抵消。我們完全專注於解決未來幾個月的監管問題和推動收入流，我們有能力在未來幾個月內取得重大進展，到年底我們將有望實現我們的增長目標並滿足最近收購 Verizon 的回報。感謝您今天通過電話加入我們，我們期待在接下來的幾個月中與您交談。