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@Link intends to make use of fiber leasing and an MPLS infrastructure to provide IP video, IP access to an underlying LD carrier as well as data products to both the ILEC industry as well as a means to provide these same functions as an IP-based CLEC. The transport of these services would be costly, requiring OC-48 level circuitry, but @Link has created an opportunity to move IXC dedicated transport circuits over to its leased fiber so that the cost of the transport is paid by the IXC’s in the form of direct trunk transport, replacing the transiting carrier, usually SBC, with revenue based on rates that are reduced from the incumbent carrier’s tariff levels. This incentive to IXC’s provides @Link with either reduced transport costs or, at the most, a profit center for providing transiting services between IXC’s and rural ILEC’s. This features eliminates the need for charging transport to ILEC networks, so that this cost of providing IP video excludes this very expensive element.

By virtue of the core IP network, @Link can cost effectively provide an alternative to traditional Bell terminated traffic through a unique hubbing capability. @Link’s hubbing product:

• Subsidizes (in most cases pays for) the fiber transport network connection necessary for Video traffic.


• Enables new revenue to its participating companies. Instead of IXCs paying Bell for use of their network, @Link will terminate traffic and distribute revenue normally received by Bell to its participating companies at less cost than the current Bell tariffs.

The hubbing project is not without some level of risk. It requires the cooperation from the Inter-exchange Carriers. @Link is currently discussing a proposal with WilTel, AT&T, Sprint and soon MCI. WilTel has already agreed to certain terms and the Company has high confidence in its ability to secure others as well.

@Link is not the first company to take advantage of this type of business arrangement. Other examples include: Great Lakes Comnet, Inc., Minnesota Equal Access Network, as well as others in Indiana, Iowa, Ohio, Wisconsin.

Hubbing incrementally improves the cost recovery for @Link’s transport with the addition of more participating carriers. With several carriers, the hubbing program greatly exceeds the cost of the transport links and generates significant recurring revenue for the Company.

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