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Discounts

Network Pricing Plans

Under these plans, a Customer commits to a minimum monthly revenue level of combined usage over a selected term, and receives the corresponding NPP discounts for IXCs under the plan to which the Customer has committed. Network Pricing Plans are available at various minimum monthly IXC revenue levels over terms of 1, 2, 3, 4 or 5 years. For NPPs entered into on or after November 1,1998, the monthly minimum revenue may include recurring charges for Company‑provided local loops. Network Pricing Plans with domestic minimum monthly IXC revenue levels of $75,000 or greater are available only under NPPs executed prior to November 1, 1998.

Customers who subscribe to service as part of the Commercial Affinity Program Plus (CAP Plus) or the Qualified Industry Affinity Program (INAP) are eligible to receive the NPP discounts associated with the 4 year, $2,000 minimum monthly IXC revenue level. The NPP discounts apply only to Company-provided IXCs, and customers receiving these discounts cannot receive discounts provided under any Network Pricing Plan Data Promotion. Customers who subscribe to service as part of the Commercial Affinity Program are not eligible for these discounts.

The monthly recurring IXC charges under a particular plan are determined by deducting the respective NPP discounts from the monthly charges calculated for each service using the applicable Monthly Plan rates. IXC revenues, calculated using the applicable Monthly Plan rates for each service plus any applicable intrastate and international revenues as explained below, are totaled and compared to the minimum monthly commitment amount. Except as explained below under, "Commencing An NPP," if the aggregate revenue applicable towards the minimum monthly revenue commitment is less than the committed amount, a charge equal to the difference is applied.

Revenues from the Company-provided portion of international dedicated leased line circuits that are enrolled in a selected International Network Pricing Plan, which revenues are calculated at the undiscounted monthly or base international rates, will be counted toward a selected domestic NPP IXC minimum. The customer may choose the Network Pricing Plan to be associated with these international revenues, subject to the terms of Notification Required from Customers.

Intrastate IXC revenue, at the applicable intrastate rates, may also be counted towards a selected NPP IXC minimum.

Except as noted below, relative to commencing a plan, the commitment to a Network Pricing Plan is independent of the circuits in the plan. Circuits may be added or deleted from a Network Pricing Plan subject to the terms for Notification Required From Customers. Other circuit specific regulations, including minimum service interval and notice of discontinuance, are defined elsewhere in this tariff.

Customers who enroll in a Network Pricing Plan shall not be entitled to any other discount, except for City Pair Discounts, or for any promotion offered by the company on IXC charges arising from services furnished under the NPP.

For NPPs entered into prior to November 1, 1998, the monthly minimum commitment must be satisfied by the customer's gross billing before the application of NPP discounts. For NPPs entered into on or after November 1, 1998, the monthly minimum commitment must be satisfied by the customer's net billing after the application of NPP discounts.

Commencing An NPP: Subject to the terms for Notification Required From Customers, the customer must select: the desired NPP term and month in which the plan is to commence; the monthly minimum IXC revenue commitment; and the circuits, which will initially be part of the plan, including ordered circuits which are due for installation within the first three months of the desired plan commencement.

The NPP commences on the first day of the calendar month selected by the customer, or the first day of a subsequent month in which the first circuit can be billed under the plan.

During the first three months of the plan, the Customer is not charged the difference if the aggregate revenue applicable towards the minimum monthly revenue commitment is less than the committed amount. The obligation to satisfy the minimum actually commences in the fourth month of the plan, unless a circuit due within the first three months of the plan has not been made available by the Company to the customer. In that case, the minimum will not apply until the circuit is made available.

Terminating a Network Pricing Plan

A customer may terminate a Network Pricing Plan before the end of its committed term without liability, if:

the Customer replaces the existing Network Pricing Plan or Plans with a Network Pricing Plan having a minimum monthly IXC revenue commitment equal to or greater than the total monthly IXC minimum revenue commitment of the customer's existing Plan or Plans and which expires on or after the expiration date of the Plan or Plans being replaced;

a rate revision results in lower plan charges for the Plan to which the customer is committed such that the Customer is caused to fall below the committed minimum monthly IXC revenue level, and the customer replaces the existing Plan by committing to a new Plan having the next lower NPP minimum monthly IXC revenue level and which expires on or after the date of the Plan being replaced. For purposes of applying this provision, the Customer will not be penalized for falling below the minimum under the existing Plan and can receive the new Plan charges from the date the rate revision takes effect, if the customer enters into the new Plan within three months of the rate effective date; or,

the Customer replaces the existing Network Pricing Plan or Plans with an MCI Vision VIP Plus, MCI Vision Customized Business Program or networkMCI One Term Plan which increases its existing MCI Vision or networkMCI One commitment by at least 150 percent of its existing annualized NPP commitment and commits to an MCI Vision or networkMCI One term length equal to or greater than their existing MCI Vision term and which expires after the date of the plan being replaced.

Except as specified above, the Customer will be billed and required to pay a termination charge equal to 100 percent of the NPP revenue commitment amount for any unexpired portion of the remaining months in the term plan.

Inter‑Office Channel Rates: The following discounts are applicable to domestic charges only for monthly recurring IXC charges.

VGPL and DS0

Monthly

Commitment

Level 1 Year 2 Years 3 Years 4 Years 5 Years

$ 500 1% 2% 3% 4% 5%

1000 1 2 3 4 5

2000 2 5 6 8 10

3000 2 5 6 8 10

4000 2 5 6 8 10

5000 3 6 7 9 11

7,000 3 6 7 9 11

10,000 4 7 8 10 12

15,000 4 7 8 10 12

25,000 5 8 9 11 13

50,000 8 11 12 14 16

75,000 7 10 11 13 15

100,000 8 11 12 14 16

200,000 9 12 13 15 17

350,000 10 13 14 16 18

500,000 10 13 14 16 18

750,000 10 13 14 16 18

Fractional DS1 (for Speeds 64 Kbps and below)

Monthly

Commitment

Level 1 Year 2 Years 3 Years 4 Years 5 Years

$ 500 1% 2% 3% 4% 5%

1,000 1 2 3 4 5

2,000 2 5 6 8 10

3,000 2 5 6 8 10

4,000 2 5 6 8 10

5,000 3 6 7 9 11

7,000 3 6 7 9 11

10,000 4 7 8 10 12

15,000 4 7 8 10 12

25,000 5 8 9 11 13

50,000 8 11 12 14 16

75,000 7 10 11 13 15

100,000 8 11 12 14 16

200,000 9 12 13 15 17

350,000 10 13 14 16 18

500,000 10 13 14 16 18

750,000 10 13 14 16 18

Fractional DS1 (for Speeds 112 Kbps up to 1472 Kbps)

Monthly

Commitment

Level 1 Year 2 Years 3 Years 4 Years 5 Years

$ 500 1% 2% 3% 4% 5%

1,000 1 2 3 4 5

2,000 10 16 17 18 19

3,000 10 16 17 18 19

4,000 11 17 18 19 20

5,000 12 18 19 20 21

7,000 15 19 20 21 22

10,000 19 20 21 22 23

15,000 20 21 22 23 24

25,000 21 22 23 24 25

50,000 23 24 25 26 27

75,000 25 26 27 28 29

100,000 26 27 28 29 30

200,000 28 29 30 31 32

350,000 29 30 31 32 33

500,000 30 31 32 33 34

750,000 31 32 33 34 35

DS1

Monthly

Commitment

Level 1 Year 2 Years 3 Years 4 Years 5 Years

$ 1,000 4% 5% 6% 8% 10%

2,000 15 17 19 20 21

3,000 17 19 21 22 23

4,000 19 21 23 25 26

5,000 23 28 32 33 35

7,000 27 32 34 35 36

10,000 34 35 36 37 38

15,000 35 36 37 38 39

25,000 36 37 38 39 40

50,000 38 40 41 42 45

75,000 41 42 43 44 47

100,000 44 45 46 47 49

200,000 47 48 49 50 51

350,000 48 49 50 51 52

500,000 49 50 51 52 53

750,000 50 51 52 54 56

DS3

Monthly

Commitment

Level 1 Year 2 Years 3 Years 4 Years 5 Years

$ 2,000 1% 2% 6% 7% 8%

3,000 1 2 6 7 8

4,000 1 2 6 7 8

5,000 2 7 11 12 14

7,000 2 7 11 12 14

10,000 13 14 15 16 17

15,000 13 14 15 16 17

25,000 15 16 17 18 19

50,000 17 18 19 20 21

75,000 18 19 20 21 22

100,000 19 21 22 23 24

200,000 21 23 24 25 29

350,000 25 27 28 29 33

500,000 32 35 38 42 45

750,000 33 36 39 43 47
SONET

Monthly

Commitment

Level 1 Year 2 Years 3 Years 4 Years 5 Years

$ 25,000 9% 14% 17% 18% 19%

50,000 11 16 19 20 21

75,000 13 18 20 21 22

100,000 15 20 22 23 24

200,000 17 22 24 25 29

350,000 19 24 26 27 31

500,000 29 34 38 42 45

750,000 31 36 39 43 48

Mileage Band (IXC Length)

The airline mileage between two cities can be calculated using the Vertical (V) and Horizontal (H) Coordinates of the serving wire centers associated with the Companys Terminal Locations.

√((V₁-V₂)²+(H₁-H₂)²)/10

where V₁ and H₁ correspond to the V & H coordinates of City 1 and V₂ and H₂ correspond to the V & H coordinates of City 2.

Example: V H

City 1 ‑ New York 4997 1406

City 2 ‑ Chicago 5986 3426

V₁V₂H₁H₂

√((4997-5986)²+(1406-3426)²)/10

√(505852.1)=711.2328

Airline Mileage = 712 miles*

* Result will always be rounded to the next highest mile.

U.S. Private Line Service Level Agreement

I. Overview: U.S. Private Line Service Level Agreement (SLA) provides Service Performance standards (Performance Standards) that the Company is required to meet or exceed. The Performance Standards guarantee Network Availability, Mean Time to Repair and Service Installation, provided that certain requirements are satisfied. The Performance Standards for Network Availability and Mean Time to Repair apply to circuits ordered on or after September 25, 1999 and the Performance Standard for Service Installation applies to circuits ordered on or after July 14, 2001.

II. Definitions:

· Mean Time to Repair (MTTR): MTTR is the period of time commencing with the date and time the Customer first informs the Company of a circuit Service Outage (i.e., opens a Trouble Ticket) and ending on the date and time that service on that circuit is restored.

· Service Availability: Service Availability is the total number of minutes in a monthly billing period during which service on that circuit is available for use by the Customer, divided by the total number of minutes in that monthly billing period. For the purposes of this SLA, Service Availability will be calculated by taking into account the time between the initiation of a Trouble Ticket for a Service Outage and reductions in time for factors or conditions that are not the Companys service responsibility.

· Service Installation Period: The span of time commencing on the date the Company accepts a completed Customer order for installation of a circuit located in the U.S. Mainland (with associated Company-provided access at 1.536 Mbps or less) and ending on the date the Company completes service installation and the service becomes available for Customer use.

· Service Outage: An unscheduled period of time when service is unavailable for use by the Customer. A Service Outage is defined as 60 or more seconds of service unavailability within a 15-minute period measured by the Company. A Service Outage may occur as a result of the Companys failure to meet its performance obligations or for factors or conditions that are not the Companys service responsibility, including those specified in the Exclusions section below.

· Trouble Ticket: The result of reporting by a Customer to the Company of a perceived Service Outage.

· Network Service Configuration:

Type 1 circuits are those for which the local loop is furnished wholly via Company or Company-affiliate facilities;

Type 2 circuits are those for which the local loop is furnished in part via Company or Company-affiliate facilities; and,

Type 3 circuits are those for which the local loop is not furnished via Company or Company-affiliate facilities.

III. Qualifications

To be eligible to receive an SLA credit for a Service Outage, a Customer must: (i) initiate a Trouble Ticket within four hours of first learning of an Outage; and, (ii) make a written request for SLA credit to the Company within five days of initiating the Trouble Ticket. When making an SLA credit request, the Customer must provide the Company with the following information: (1) the Trouble Ticket number; (2) the date and tie the Trouble Ticket was initiated; and (3) the circuit ID number for each circuit that experienced the Service Outage.

To receive an SLA credit for a Service Installation Period SLA, an eligible Customer must make a written request for credit to the Company within five days of completed installation of the qualifying service. When making this credit request, the Customer must provide the Company with the following information: (1) the date the Service Installation Period commenced; (2) the date specified for installation in the Customer order; (3) the date Installation was completed; (4) the circuit ID number for each circuit that was not installed within the SLA; and, (5) the Customers order number.

IV. Performance standards for Domestic Circuits

1. Service Availability: The number of minutes that a service is available to the Customer for use during a billing period.

Calculation: To calculate the percentage of Network Availability, or the time during which service was available to the Customer, determine the total number of minutes service was available to the Customer during a billing period, divide that amount by the total number of minutes in the billing month, and multiply the quotient by 100.

Example:

(

Total number of minutes in a monthly billing period of service availability

)

X 100

Total number of minutes in the billing month

An SLA credit will not be given for a Network Outage:

for which a Trouble Ticket was not timely opened and for which a written credit request was not timely made by the Customer ; or

resulting from any of the occurrences specified in Section VI.

If the Customer is ineligible for a SLA, the Customer will receive a credit equal to the pro-rated charge for monthly service based on the Monthly Recurring Charge for the circuit affected by the Network Outage.

2. Mean Time to Repair (MTTR): The period of time commencing on the date and time the Customer informs the Company of service interruption (i.e., opens a Trouble Ticket) and ending on the date and time of service restoration (i.e., close of a Trouble Ticket).

Calculation: MTTR is calculated as the average time to repair a Network Outage affecting service. The length of each Network Outage is totaled at the end of each billing month and divided by the corresponding number of Network Outages as reflected in Trouble Tickets opened for that billing month.

Example:

(

Cumulative length of Network Outage(s) for circuit

)

Total number of Trouble Tickets per billing month per each circuit

3. Service Installation: For this provision only, this standard does not include Saturdays, Sundays or national holidays.

V. Credits: For any billing month in which the Company fails to meet or exceed any Performance Standard other than the Service Installation SLA, a credit will be applied to the net Monthly Recurring Charges (MRCs) for the Customers non-compliant service. Credits will not apply to any local access or backhaul charges.

For circuits ordered on or before August 31, 2001:

For a one month failure, the Company will provide a credit equal to 5 percent of the monthly recurring circuit charges, after application of all discounts.

For a failure of two consecutive months, the Company will provide a credit equal to 10 percent of the monthly recurring circuit charges, after application of all discounts, for the second month.

For a failure of three consecutive months, either (1) the Company will provide a credit equal to 15 percent of the monthly recurring circuit charges, after application of all discounts, for the third month and each consecutive month thereafter that the Customer remains subscribed to the circuit and the Company fails to satisfy the SLA; or (2) the Customer may terminate service for that circuit without incurring liability, except for charges incurred prior to service termination, provided that the Customer notifies the Company in writing of its intent to terminate the circuit no later than 30 days after the conclusion of the third month or any consecutive month thereafter. For a failure of three consecutive months or more, the Company upon written notice to a Customer, may terminate its performance obligations under this SLA, which will result in the application to circuit performance of the credit outage allowance provisions contained in the General Terms and Conditions.

For circuits ordered after August 31, 2001:

For a one month failure, the Company will provide a credit equal to 25 percent of the monthly recurring circuit charges, after application of all discounts.

For a failure of two consecutive months, the Company will provide a credit equal to 50 percent of the monthly recurring circuit charges, after application of all discounts, for the second month.

For a failure of three consecutive months, either (1) the Company will provide a credit equal to 100 percent of the monthly recurring circuit charges, after application of all discounts, for the third month and each consecutive month thereafter that the Customer remains subscribed to the circuit and the Company fails to satisfy the SLA; or (2) the Customer may terminate service for that circuit without incurring liability, except for charges incurred prior to service termination, provided that the Customer notifies the Company in writing of its intent to terminate the circuit no later than 30 days after the conclusion of the third month or any consecutive month thereafter. For a failure of three consecutive months or more, the Company upon written notice to a Customer, may terminate its performance obligations under this SLA, which will result in the application to circuit performance of the credit outage allowance provisions contained in the General Terms and Conditions.

If the Company fails to satisfy the Service Installation Period SLA, the Company will provide a credit equal to 50 percent of the monthly recurring circuit charges, after application of all discounts, for qualifying service.

In addition, the Company will not issue credits pursuant to a SLA for more than six months in any 12-month period.

VI. Exclusions:

Exclusions: Calculations to determine SLA credits will not include time during which a Service Outage results from, or a Service Installation Period SLA is not satisfied as the result of, any of the following circumstances or conditions:

For Service Availability and MTTR:

· Scheduled service maintenance;

· Labor strikes affecting service;

· Force majeure events beyond the reasonable control of the Company (including, but not limited to, acts of God, government regulation, and national emergency);

· Service Outages attributable to the installation of a new circuit;

· Services Outages attributable to: customer premises equipment (CPE); any third party equipment other than equipment furnished by LECs as part of their access services; or any Customer application on a covered circuit; or,

· Any act or omission on the part of the Customer, its contractors, agents or vendors, including any refusal to release the circuit to the Company for maintenance, testing or repair.

For Service Installation Period:

· A Customer-ordered installation date that is within the Service Installation Period;

· Any act or omission on the part of the Customer, its contractors, agents or vendors, including changing a previously accepted service order;

· Delays due to causes beyond the control of the Company;

· Delays resulting from an order suspension due to credit issues involving the Customer;

· Delays resulting from extension of the access circuit demarcation point;

· Delays resulting from inaccurate or incorrect order information from the Customer;

· Installations associated with an individual case basis (ICB) or other special service arrangement;

· Force majeure events beyond the reasonable control of the Company (including, but not limited to, acts of God, government regulation, and national emergency).

· Labor strikes or work stoppages affecting service; or,

· Unavailability of Customers premises, CPE or facilities required to install service.