APPENDIX 8CUSTOMER STATEMENTSIndex of Attached Customer Statements7 1;levcn, Inc.American Bureau of ShippingABX LogisticsI ,incoln Memorial UniversityA Cleaner WorldAccess World\vidcAcme Truck Line, Inc.J\ftlJialcd Computer Services, Inc.ACT TeleconferencingAdams Brothers Produce/\D(' Telecollllllunications, Inc.Advanced Cable CommunicationsAdventist Health SystemAllconncct, Inc.Ai. JamaicaAlmas Energy Corporation8ancorpSouthBank IndependentBallkPJus CorporationBarksdale Federal Credit UnionBest BuyBNSF Railway CompanyBossier Parish SchoolsBrasfield & Gonic, LLCBrevard County, FloridaBridgcstone Americas Holding Inc.BroadbandONE. Inc.Bryan-Alan StudiosBuncombe County, N.C.Cal Maine Foods, Inc.Carroll, EMCt atalina MarketingCharlotte-Mecklenburg SchoolsCbildren's Healtheare of AtlantaTbe Chlidren's Hospital of ALChoiccPoint Inc.City' of Hollywood, FloridaCity nf Opelika, AlabamaClear Channel Commc'ns, Inc.Cleveland County Public ScboolsCommand Alkon Inc.Commercial BankCOllllllunity EldercareCommunity First BancsharesCommunity Health SystemsRadiology AllianceCommunity Loans of America, Inc.Consolidated Systems, Inc.Crescent BankDcRoyal IndustriesDeSoto Family MedicalDialogic Communications Corp.East Feliciana Parish School BoardElon UniversityEMC, Inc.Miami-Dade County, FloridaER Snell Contractor, Inc.Exide TechnologiesFarmers Insurance GroupFayette County SchoolsFlorida Power & Light Co.Flowserve CorporationFred's, Inc.Gainesville Bank & TrustGaston County SchoolsGlobal ResponseGMPCS PersonalCommunications, Inc.Gwinnctt County Public SchoolsHarrison County (MS) EmergencyCommunications Comm'nHaywood County, N.C.Hilton Hotels, Inc.Historic Tours of AmericaILl. Russell & Co.Iberia Bank, Inc.Honda Precision Parts of GeorgiaIndian River Memorial HospitalI nnotrac CorporationJ 1\S WorldwideJewish Hospital and St. Mary'sHealtb CareKentucky BankKinetix Broadband, LLCLane FurnitureLife Care Centers of AmericaLouisiana MachineryMACTEC. Inc.Madison County, MississippiManagement Services NetworkMannington MillsMarriott InternationalMcGriff, Seibels & WilliamsMedQuest Associates, Inc.Member's Credit UnionMerchants CompanyMETCO/Milwaukee Electric ToolMctso CorporationMississippi Department of ITServicesMotor Coach IndustriesNACCO Materials HandlingGroup, Inc.National City CorporationNational Safety Associates, Inc.North Carolina Researcb andEducation Network, MCNCNortb Florida Obstetrical andGynecological Associates, P.A.North Mississippi Medical CenterNYC Logistics (Americas) Inc.State of LouisianaOpen Solutions Inc.Orthopaedic Specialists of ALPalm Beach County, FLPalmetto Primary Care PhysiciansPeachtree Settlement FundingPer-Se Technologies, Inc.Pensacola Christian CollegePickens County, S.c:.Place Properties, L.P.RARE Hospitality Int'l, Inc.RES Lynk IncorporatedRealtySolithSanofi-Aventis GroupSCS Transportation, Inc.Shaw IndustriesRoper S1. Francis HealthcareRichland County, S.c:.Savannah College of Art andDesignSecurity BankSoutheastern Freight Lines, Inc.Soutbem Ag CarriersSouthern Orthopaedic SpecialistsSt. Josepb's/CandlerSunshine Mortgage CorporationSawnee Electric Membersbip Corp.TalbotsTIC Federal Credit UnionTranstar Industries Inc.Los Angeles Times (Tribune Co.)Turbo Logistics, Inc.University of LouisvilleUS Wireless Online, Inc.Vesta Insurance Group, Inc.West Tennessee HealthcareYamaha Motor CorporationZoo Atlanta
Competitors Mentioned in Customer StatementsAAPTAceTelecomAccess TelecomAdvanced Communi ation SolutionsAGLNetworksAlcatelAlliel CorporationANS CommunicationsATX CommunicationsAvayaAvvidBirch TelecomBradenburg Telephone CompanyBright House NetworksBritish Telecom (BT)Broadwing CommunicationsCbeyond CommunicationsCeliularOneCellularSouthCenturyTel, Inc.Charter CommunicationsCinergy CommunicationsCIO CommunicationsCisco SystemsColt Telecom GroupCorneastComvest CorporationConterra Technical SystemsCovadCox CommunicationsCSIIeTC CommunicationsCypress CommunicationsData FoundryGeneral OataCommDeltacomDeutsche TelekornDigital AgentDirect TVDukeNet CommunicationsERe TelecommunicationsFlorida Digital NetworkFiberNet Telecom Group, Inc.French Telecom/EquantFrontierGlobal Crossing, ltd.Granite TelecommunicationsGlobeTel Communications Corp.IBM Telecom Industry SolutionsInsight CommunicationsInter-TelJackson Energy AuthorityKMC TelecomKnologyl.A.-TelLevel 3 CommunicationsLiberty Bell TelecomMasergyMcLeod USAMegapath Networks, Inc.MiTel NetworksMotorolaNAP of the Americas (Terre mark Worldwide)NetDoorNetifaceNew Edge NetworksNortelNorth State CommunicationsNOS CommunicationsNuVox CommunicationsPaetec CommunicationsPaging Network, Inc. (PageNet)PositronPriority CommunicationsProgress TelecomQwest CommunicationsRed Gap CommunicationsReserve TelecommunicatinsRogers Communications Inc.SiemensAGSingTelSITASkyPort Global CommunicationsSolarcomSoutheastern TelecomSouthern TelecomSpaceNet, Inc.Spirit TelecomSpringboard TelecomSprinUNextelTalkSouthTampaBay OSLTCI TelecomTechnology Solutions of SCTelcoveTeligentTelstar TelecomThe Home Telephone Co.Time Warner CableT- obileTNS TelecomTrillion Digital CommunicationsTriton TelecomT-SystemsUniversity of LouisvilleUS LECUSA Telecom WirelessVartec TelecomVentureNetVerizon/MCIVocera CommunicationsVonageWire One CommunicationsWWISPXfone/155/EBI CommXO CommunicationsXspediusZetron Inc.
DECLARA nON Of PATH BARNESI.I am Patti Barnes, Telecommunications Director of7-Eleven, Inc. I am responsiblefor the procurement of telecommunications services for the company's telecommunicationsneeds nationwide. I have been in the telecommunications business for twenty years. Prior tojoining 7-Eleven in August 2005, I was employed by AT&T for 19 years.2.7-Eleven purchases data and long distance services from AT&T on a national basisand procures local service from the various RBOCs throughout the country. Thus, in its ninestate footprint, 7-Eleven purchases local voice service from BellSouth. Additionally, 7-Elevenpurchases wireless service from Cingular. A small amount of services also are purchased fromILECs, such as Granite Telecommunications.3.The company purchases its data and long distance services from AT&T under a 5year agreement, which was very recently renewed without engaging in a competitive biddingprocess. 7-Eleven has maintained a longstanding relationship with AT&T, having done businesswith the company for 14 years. Indeed, AT&T provides 7-Eleven with a Solutions ManagementOutsource Team which has served the company in-house for a number of years. 7-Elevenpurchases its local voice service from BellSouth under' a three-year agreement, which also wasvery recently renewed without engaging in a competitive bidding process due to our satisfactionwith the service offered by BellSouth. If 7-Eleven were ever to grow dissatisfied by the termsand service provided to us by AT&T or BellSouth, however, we would have ample alternativeoptions, including Verizon/MCI and the numerous competitive LEes who are always knockingon our door.4.7-Eleven is moving toward IP based telecommunications and has adopted Videoover!P. The company will also be moving toward VolP due to benefits in portability and otheradvantages ofVoIP,5.A general concern with telecommunications procurement is that so many discreteservices are billed and provided separately in their own silos. 7-Eleven negotiates differentagreements with Cingular, AT&T, and BellSouth. This wastes time and causes unnecessaryfrustration. Additionally, it would be helpful to have all of the various RBOC local servicesconsolidated and coordinated by my in-house AT&'I' team, rather than having to call differentcustomer support and operations teams for different parts of our network.6.Should AT&T and BellSouth be able to integrate all of their local, long distance,data, and wireless businesses, with coterminous contracts and a single support team, I am of theopinion that the merger would be of great benefit to 7-Eleven due to the efficiencies inherent indealing with one integrated provider for all of the company's telecommunications needs. S'J, DPatti BarnesTelecommunications Director7-Eleven, Jnc.
STATEMENT OFBRETT BIDINGERABS1. I am the Manager of Data Voice Communications for the American Bureau ofShipping (ABS). In my position, I am in charge of selecting vendors to provide dataand internet frame-relay and well as thc voice services. I have held this position forSIXyears. Prior to this position, I worked as a network analyst for ABS for threeyears.-2-c--Aggis-anon-pm-fit corporation- that-establishes and applies technical standards-in relation to the design, construction and survey of marine related facilities includingships and offshore structures. Our headquarters are in Houston, Texas but we havelocations in nearly every port in the world.3. We have over 150 offices in 70 countries located throughout the world. These officesare responsible for purchasing their local telecom services but I provide them withguidance.4. ASS spends approximately 3 million armually on telecom services - 2 million forour offices based in the United States and approximately 1 million a year forinternational service.5. Approximately 70% of ASS telecom expenses are spent on data services, withanother 30% being spent on voice services. We rely on a variety oftelecom vendorsto supply these services.6. ABS procures telecom services through an informal process. We generally use thelarger, major player telecoms and I typically requests bid from existing vendors thathave good reputations and that have performed well in the past. These vendorsinclude Verizon/MCI, AT&T, Global Crossing and Covad.7. I find the market to be highly competitive. We regularly use this competition to ouradvantage. In addition, the market provides adequate products to serve our needs. Iam presently working on the framework to convert our system to using VoIP. I amconfident that we will use VoIP services in the future.8. ASS does not use AT&T and BellSouth for similar services. In fact, ABS only usesBcllSouth for minimal local calling plans in a few locations in the southeast.
9. I think that the merger of AT&T and BellSouth will be beneficial to ABS and I do notthink it will hurt competition. The biggest benefit for ABS will be the ability to haveone-stop-shopping. As long as the main players are there, competition will be healthyand we will get good service and save money at the same time. I also think that themerger may better enable AT&T to invest in network systems and research anddevelopment.I declare under penalty of perjury that the foregoing is true and correct to the best ofmy kno",ledge. ZOfp6DateManager of Data Voice Communications, ABS2
Statement of Mark Baker (ABX Logistics)I. I am the Director of Information Technology for North America at ABX Logistics. ABXLogistics is a worldwide transportation and logistics service provider headquartered inBrussels, Belgium. The North America operation, which includes the United States andCanada, is primarily Air and Sea import/export.2. I am responsible for all Information and Telecommunications systems in North America,including purchasing decisions. I have been in this position for three years, and beforethat I had similar duties with other global companies. I have eighteen years of experiencein Information Technology Management.3. ABX purchases several millions of dollars in telecommunications services annually,including managed Internet, wireless, and local and long distance telephone services.ABX North America buys Internet services from AT&T under a contract entered into inDecember of 2005, and use AT&T for some, but not all, of our local and long distanceservice.4. I would like to consolidate all of our telecommunications services under one serviceprovider. AT&T is view as the primary candidate of being such a provider. Where we canuse one carrier to serve multiple regions, we have tried to do so, but this is difficult giventhe current industry structure. Third-party consultants can help to build a package thatincludes necessary services in all regions, but in using such services one loses some ofthe benefits of dealing with primary carriers.5. I support and look forward to the merger of AT&T and BellSouth because it could makeAT&T more viable as a tme single-provider solution. Where BellSouth has localpresence, it is our local provider. It has an excellent account team that is very customerfocused. In general, BellSouth is a very proactive company -- recently when someonehacked into our voicemail system, BellSouth's fraud division immediately detected it andsent technicians on site to resolve the problem. We would have liked to use BellSouth'sservice in other parts of the country, but due to the limitations of its regional network, wecouldn't do that. Instead, we have had to deal with individual providers in variousregions -- SBC, PacBell, Verizon and others.6. The necessity of using a patchwork of providers has imposed tangible costs on us. Forexample, with a single provider and single point of contact, we could eliminate theequivalent of a full-time accountant dealing with telecom billing services. The lack of atrue single-source provider also imposes costs in the form of additional IT staff that musthave knowledge of all our services and service providers. Having multiple providers,many of whom must outsource significant parts of their service, also creates additionalcosts when problems arise, as it can be difficult to pinpoint the source of the problem. Asa practical example, we suffered a network outage after an ice storm in Chicago. Toidentify the problem, which existed within the subcontractor for our local provider, wehad to contact so many companies and divisions of companies that we lost an entire
business day -- thousands of dollars in revenue that we will never recover. In my view,this would not have happened with a more solidified network.7. I do not believe the merger will have an impact on pricing. In negotiating our recentcontract for Internet services, we considered numerous providers, including AT&T, TMobile, MCI, and Sprint as well as BellSouth. We got aggressive pricing from AT&Tprimarily because of competition from T-MobiJe's T-Systems. Even after theAT&T/BellSouth merger, there will be enough competition from companies like TSystems, MCI and Sprint to keep the marketplace competitive. We have also exploreduse of VoW services -- in fact; we've built VoIP capacity into our local systems and areactively pursuing this option.8. ln addition, competitimLbetween AT&T-and BeliSnuthhas beenJess impmtanLtoll&because we don't view the two companies' services as substitutes. AT&T lays on top ofthe system, providing services those regional companies like BellSouth cannot provide ona national level. For these reasons, I do not have competitive concerns about this merger.DATE
Sheree A. Schneider Statement1.IamShereeA.Schneider,Director of AcademicComputer Support for Lincoln Memorial University in Harrogate,Tennessee.Lincoln Memorialisafour-year nBusiness,Education, and Nursing.We are located in the Cumberland Gap, arural area at the intersection of Tennessee,Kentucky, andVirginia.2.I am responsible for purchasing all telecommunicationsservices and infrastructure for Lincoln Memorial.We currentlybUy local PRIs, long distance, TIs, and DS3 from BellSouth.Cingular provides our wireless voice service.Some of ourequipment and maintenance is provided by CIS, Inc., a localvalue-added reseller of communications hardware.3.Lincoln Memorial used to purchase long distance fromAT&T.About five years ago, I took responsibility for upgradingand organizing the school's communications infrastructure, whichwas a complete mesS due to years of unplanned and haphazardinstallations.I found BellSouth to be a helpful partner inthat process and, based on our good relationship, I transitionedall of our business from AT&T over to BellSouth.4.I frequently get calls from MCI and Sprint expressinginterest in our business.To date, I have not followed up ontheir inquires because I am satisfied with BellSouth.5.Lincoln Memorial is part of two consortia of smallcolleges,the dependent Colleges and Universities Association("TICUA") .The State of Tennessee has suggested in the elecommunications services.At the time, I did not believethat would confer an advantage on Lincoln Memorial, because weare pleased by BellSouth's pricing and' services.If, however,we were forced to look for other options, I would work with ACAor TICUA to develop new solutions from a larger pool of vendors,including among others Global Crossing, Sprint, and Verizon/MCI.6.Overall,Ihave a positive view of the proposedcombination of AT&T and BellSouth.I expect that the expandedcompany will be positioned to give us more "bang for our buck,"particularly in the area of data technology.I also love echnologies, resulting from the integration of Cingular intothe new company.It will be convenient to have one teamsupporting both sets of services and I would expect us to getNYDOCS:26509.1
epurchases in one vendor.Date:Sheree A. SchneiderDirector of Academic Computer SupportLincoln Memorial UniversityNYDOCS:26509.1
ACW MANAGEMENT CORPORATION2334 English Rd.High Point, NC 27262Phone (336) 841A188 Fax (336) 841-4117STATEMENT OF CHRlS EDWARDS (A CLEANER WORLD)ACleanerWorld'L I am the President of A Cleaner World and have been in this position since 1996. Ihave been working at A Cleaner World since 1982, A Cleaner World is based inHigh Point, North Carolina, and we provide dry cleaning services at 44 outletslocated mostly in North Carolina as well as in Virginia. In my role as President, Ihave the responsibility for selecting telecommunications services for A CleanerWorld.2. A Cleaner World spends around I 00,000 per year on telecommunications-Servu;es:--Approxnnately a qUliiteTtiftBatamount is spent on cellUlar services forour business- 95% of that spend goesloAlltel and 5%10 Verizon Wireless. Weuse BellSouth for local phone service and Internet access services at about 60% ofour North Carolina-based locations, which constitutes roughly 45% of our annualtelecom spend. We use North State Communications for local service and Internetaccess services at our High Point headquarters. We use other regional phonecompanies for local service at some of our outlying locations. Sprint provides us a'service bundle (local, long distance and Internet) for our Kernersville, NorthCarolina location. We use AT&T for long distance services at all of our otherNorth Carolina locations as well as at our Virginia locations.3. In order to ensure that we continue to receive competitive rates, we look atalternative telecommunications service providers every three or four years. Forexample, about four years ago, we switched our local service at our WinstonSalem and Greensboro, North Carolina locations from BellSouth to a companycalled BTl Communications because BTl was offering lower rates. We found,however, that BTl's quality of service was not as good as BellSouth's so weswitched back to BellSouth later. Price and service are both importantconsiderations we look at in selecting telecommunications providers.4. I believe there's a very, very open market for business telecommunicationsservices today because there are so many different options for communicatingnow, with VolP, cellUlar, cable companies and many different carriers -like BTl that provide services. Wireless service definitely competes with traditionalwireline phone networks and long distance providers. Our company uses cellphones with unlimited nationwide calling, and as such, we are increasingly usingcell phones for long distance business calls rather than landline phones. By thesame token,