TO: Editors, News Directors

DATE: January 29, 2002

FOR: Immediate Release

Qwest Cancels Plans to Share Customer Data
Commissioners Call Decision a Win for Consumers

PHOENIX - Qwest Communications told Arizona regulators that the company no longer plans to use private account information from its customers. At a special open meeting of the Arizona Corporation Commission, Qwest Regional Vice President Teresa Wahlert told Commissioners that the company is withdrawing its notice and reversing its plans.

"We are expressly stating that we will not share our customers' private information with others - or among Qwest companies," Wahlert stated. She cited concerns from customers and tough questions from the Commissioners as some of the reasons behind Qwest's change in policy.

While the Commission meeting was taking place, Qwest Chairman Joseph P. Nacchio held a press conference in Denver to announce the shift in policy. Qwest is suspending the sharing of information indefinitely and will wait for final rules from the Federal Communications Commission (FCC).

"We have stated loud and clear that we do not want Qwest to use customer data for their own - or anyone else's - marketing purposes," stated Commission Chairman Bill Mundell.

Commissioner Jim Irvin claimed today's announcement by Qwest "a victory for the consumers of Arizona. We are pleased that Qwest has heard our message and has agreed not to disclose customer account information - even within their family of companies."

"We are continuing with our plans to send a letter to the FCC expressing support for a policy that would require phone companies to get permission from customers before sharing private account information," Commissioner Marc Spitzer explained.

At the meeting, the Commissioners approved a draft letter to the FCC with the addition of text referencing the Arizona State Constitution. The document includes the right to privacy as one of the state's founding principles.

All three Commissioners also voted to begin the formal rulemaking process. This will allow the Commission to hear from all telecommunication companies in Arizona and work toward a formal policy for sharing proprietary customer information. The Commissioners suggested that they want an "opt in" rule. Such a policy would require the express, verifiable permission of the phone customer before any information could be shared.

"The consumer should not have to bear the burden of proof," Commissioner Spitzer explained. "An 'opt in' rule would place the burden on the phone company to get permission from its customers. In America, the right to privacy is a fundamental value."

"You, the consumer, have expressed your displeasure with Qwest's policy," Chairman Mundell said in an interview following the meeting. "And the full weight of public opinion has come down on Qwest. From a corporate standpoint, I am sure Qwest didn't want to reverse course but Arizona consumers should be glad they did."

Commissioner Irvin added: "I am pleased that Qwest has reversed its policy and look forward to the rulemaking process so we can protect consumers by requiring all phone companies to play by the same rules."

Qwest's policy came under fire from Commissioners, members of the public and consumer groups at a standing-room-only hearing on January 16. All three Commissioners said that Qwest's notice to customers - mailed with December bills - was poorly worded, confusing and badly timed. Qwest's Vice President, Teresa Wahlert, told the Commissioners that a new notice would be sent to customers to make them aware that Qwest will not be disclosing customer information or using the data for marketing purposes.