Contract Tariff - AT&T Communications
AT&T COMMUNICATIONS CONTRACT TARIFF NO. 5776 Adm. Rates and Tariffs 1st Revised Title Page Bridgewater, NJ 08807 Cancels Original Title Page Issued: December 20, 1996 Effective: December 21, 1996 Original Tariff Effective: November 1, 1996 CONTRACT TARIFF NO. 5776 TITLE PAGE This Contract Tariff applies to AT&T Software Defined Network Services consisting of: AT&T Custom Software Defined Network Service and Global Software Defined Network Service; AT&T Distributed Network Service; AT&T MEGACOM Service; AT&T 800 Services consisting of: AT&T 800 Service-Domestic, AT&T 800 Service-Canada, AT&T MEGACOM 800 Service-Domestic, AT&T MEGACOM 800 Service-Canada, AT&T MEGACOM 800 Service-Mexico, AT&T MEGACOM 800 Service-Overseas, AT&T 800 READYLINE Service-Domestic, AT&T 800 READYLINE Service-Canada, AT&T 800 READYLINE Service-Mexico, AT&T 800 READYLINE Service-Overseas, AT&T 800 READYLINE Service-Puerto Rico and the U.S. Virgin Islands; AT&T ACCUNET T1.5 Service Access Connections; AT&T Primary Rate Interface Office Functions and AT&T Terrestrial 1.544 Mbps Local Channel Services for interstate or foreign communications in accordance with the Communications Act of 1934, as amended. Telecommunication services provided under this Contract Tariff are furnished by means of wire, radio, satellite, fiber optics or any suitable technology or combination of technologies. Printed in U.S.A. <PAGE> AT&T COMMUNICATIONS CONTRACT TARIFF NO. 5776 Adm. Rates and Tariffs 1st Revised Page 1 Bridgewater, NJ 08807 Cancels Original Page 1 Issued: December 20, 1996 Effective: December 21, 1996 CONTRACT TARIFF NO. 5776 CHECK SHEET The Title Page and Pages 1 through 26 inclusive of this tariff are effective as of the date shown. Original and revised pages as named below contain all changes from the original tariff that are in effect on the date shown. Number of Revision Number of Revision Page Except as Indicated Page Except as Indicated ---- ------------------- ---- ------------------- Title 1st* 7 1st* 1 1st* 8 1st* 3 1st* 9 1st* 3.1 Original 10 1st* 4 1st* 11 1st* 5 1st* 11.1 Original* 6 1st* 12 1st* 6.1 Original* 13 1st* * New or Revised Page TABLE OF CONTENTS Page ---- Check Sheet. ........................................... 1 List of Concurring, Connecting and Other Participating Carriers.............................................. 1 Explanation of Symbols - Coding of Tariff Revisions..... 1 Trademarks and Service Marks............................ 2 Explanation of Abbreviations............................ 2 Contract Summary........................................ 3 LIST OF CONCURRING, CONNECTING AND OTHER PARTICIPATING CARRIERS Concurring Carriers - NONE Connecting Carriers - NONE Other Participating Carriers - NONE EXPLANATION OF SYMBOLS - CODING OF TARIFF REVISIONS Revisions to this tariff are coded through the use of symbols. These symbols appear in the right margin of the page. The symbols and their meanings are: R - to signify reduction. I - to signify increase. C - to signify changed regulation. T - to signify a change in text but no change in rate or regulation. S - to signify reissued matter. M - to signify matter relocated without change. N - to signify new rate or regulation. D - to signify discontinued rate or regulation. Z - to signify a correction. Other marginal codes are used to direct the tariff reader to a footnote for specific information. Codes used for this purpose are lower case letters of the alphabet, e.g., x, y and z. These codes may appear beside the page revision number in the page header or in the right margin opposite specific text. Printed in U.S.A. <PAGE> AT&T COMMUNICATIONS CONTRACT TARIFF NO. 5776 Adm Rates and Tariffs Original Page 2 Bridgewater, NJ 08807 Issued: October 31, 1996 Effective: November 1, 1996 ** All material on this page is new.** TRADEMARKS AND SERVICE MARKS - The following marks, to the extent, if any, used throughout this tariff, are trademarks and service marks of AT&T Corp. Trademarks Service Marks ---------- ------------- None ACCUNET MEGACOM READYLINE EXPLANATION OF ABBREVIATIONS Adm. - Administrator Mbps - Megabits per second Printed in U.S.A. <PAGE> AT&T COMMUNICATIONS CONTRACT TARIFF NO. 5776 Adm. Rates and Tariffs 1st Revised Page 3 Bridgewater, NJ 08807 Cancels Original Page 3 Issued: December 20, 1996 Effective: December 21, 1996 CONTRACT TARIFF NO. 5776 1. Services Provided: A. AT&T Software Defined Network (SDN) Services (AT&T Tariff F.C.C. No. 1) con- sisting of: 1. Custom SDN 2. Global Software Defined Network (GSDN) Service B. AT&T Distributed Network Service (DNS) (AT&T Tariff F.C.C. No. 1) N C. AT&T MEGACOM Service (AT&T Tariff F.C.C. No. 1) D. AT&T 800 Services (AT&T Tariff F.C.C. Nos. 2 and 14) consisting of: 1. AT&T 800 Service-Domestic 2. AT&T 800 Service-Canada 3. AT&T MEGACOM 800 Service-Domestic 4. AT&T MEGACOM 800 Service-Canada 5. AT&T MEGACOM 800 Service-Mexico 6. AT&T MEGACOM 800 Service-Overseas 7. AT&T 800 READYLINE Service-Domestic 8. AT&T 800 READYLINE Service-Canada 9. AT&T 800 READYLINE Service-Mexico 10. AT&T 800 READYLINE Service-Overseas 11. AT&T 800 READYLINE Service-Puerto Rico and the U.S. Virgin Islands E. AT&T ACCUNET T1.5 Service Access Connections and the AT&T Primary Rate Interface Office Functions (AT&T Tariff F.C.C. No. 9) F. AT&T Terrestrial 1.544 Mbps Local Channel Services (AT&T Tariff F.C.C. No. 11) Printed in U.S.A. <PAGE> <TABLE> AT&T COMMUNICATIONS CONTRACT TARIFF NO. 5776 Adm. Rates and Tariffs Original Page 3.1 Bridgewater, NJ 08807 Issued: December 20, 1996 Effective: December 21, 1996 ** All material on this page is reissued except as otherwise noted. ** CONTRACT TARIFF NO. 5776 <S> <C> 2. CONTRACT TERM; RENEWAL OPTIONS - For the AT&T SDN Services and associated AT&T ACCUNET T1.5 Service Access Connections and AT&T Terrestrial 1.544 Mbps Local Channel Services, the AT&T DNS Services and associated ACCUNET T1.5 N Service Access Connections and Terrestrial 1.544 Mbps Local Channel Services, the AT&T MEGACOM Services and the AT&T 800 Services and associated AT&T ACCUNET T1.5 Service Access Connections, AT&T Primary Rate Interface Office Functions N and AT&T Terrestrial 1.544 Mbps Local Channel Services provided under this Contract Tariff, the date on which the term of this Contract Tariff begins is referred to as the Customer's Initial Service Date (CISD). For the AT&T SDN Services and associated AT&T ACCUNET T1.5 Service Access Connections, and AT&T Terrestrial 1.544 Mbps Local Channel Services and the AT&T DNS Services and associated ACCUNET T1.5 Service Access Connections and Terrestrial 1.544 Mbps Local Channel Services provided under this Contract Tariff, the term is 18 months and the CISD is the first day of the Customer's first full billing month under this Contract Tariff. For the AT&T MEGACOM Services and associated AT&T N ACCUNET T1.5 Service Access Connections and AT&T Terrestrial 1.544 Mbps Local Channel Services, the term is 4 years and the CISD is the first day of the Customer's first full billing month under this Contract Tariff. For the AT&T 800 Services and associated AT&T ACCUNET T1.5 Service Access Connections, the AT&T N Primary Rate Interface Office Functions and AT&T Terrestrial 1.544 Mbps Local Channel Services, the term is 4 years and the CISD is the first day of the Customer's first full billing month under this Contract Tariff. No renewal option is available for this Contract Tariff. </TABLE> Printed in U.S.A. <PAGE> AT&T COMMUNICATIONS CONTRACT TARIFF NO. 5776 Adm. Rates and Tariffs 1st Revised Page 4 Bridgewater, NJ 08807 Cancels Original Page 4 Issued: December 20, 1996 Effective: December 21, 1996 3. MINIMUM COMMITMENTS/CHARGES <TABLE> <CAPTION> <S> <C> A. MINIMUM REVENUE COMMITMENTS - The Minimum Revenue Commitments (MRCs) for the AT&T SDN Services, the AT&T DNS Service, AT&T MEGACOM Service including the International Calling Capability and the AT&T 800 Services provided under this N Contract Tariff, after the application of the Discounts as specified in Section 5., following, have been applied, are as follows. The Domestic/International MRC will be satisfied by the usage charges for the AT&T SDN Services, the AT&T DNS Service, AT&T MEGACOM Service including the International Calling Capability and the AT&T 800 Services. Of the Domestic/International MRC, a portion, the International MRC, must be satisfied by usage charges for the combined total of AT&T 800 Service-Canada, AT&T MEGACOM 800 Service-Canada, AT&T MEGACOM 800 Service-Mexico, AT&T MEGACOM 800 Service-Overseas, AT&T 800 READYLINE Service-Canada, AT&T 800 READYLINE Service-Mexico, AT&T 800 READYLINE Service-Overseas, AT&T 800 READYLINE Service-Puerto Rico and the U.S. Virgin Islands, AT&T MEGACOM Service International Calling Capability, AT&T DNS International Calling Capability and AT&T GSDN Service. 1. INTERNATIONAL MRC Commitment Period MRC N Each Month $1,000,000 If in any month, the Customer has failed to satisfy the International MRC the Customer will be billed a shortfall charge equal to the difference of the MRC and the actual usage charges for that month for the combined total of AT&T 800 Service-Canada, AT&T MEGACOM 800 Service-Canada, AT&T MEGACOM 800 Service-Mexico, AT&T MEGACOM 800 Service-Overseas, AT&T 800 READYLINE Service-Canada, AT&T 800 READYLINE Service-Mexico, AT&T 800 READYLINE Service-Overseas, AT&T 800 READYLINE Service-Puerto Rico and the U.S. Virgin Islands, AT&T MEGACOM Service International Calling Capability, AT&T DNS International Calling Capability and AT&T GSDN Service after the application of all discounts as specified in Section 5., following. 2. DOMESTIC/INTERNATIONAL MRC Commitment Period MRC C Months 1-18 $120,000,000 Months 19-24 $40,000,000 Months 25-36 $70,000,000 Months 37-48 $70,000,000 C If, at the end of any Commitment Period, the Customer has failed to satisfy the Domestic/International MRC applicable for that Commitment Period, the Customer will be billed a shortfall charge equal to the difference between the Domestic/International MRC for that Commitment Period and the actual usage charges, for that Commitment Period, for the combined total of AT&T SDN Services, AT&T DNS Service, AT&T MEGACOM Service including the International Calling Capability and the AT&T 800 Services provided under this Contract Tariff, after the application of the Discounts as specified in Section 5., N following, including any shortfall charge(s) paid by the Customer pursuant to Section 3.A.1., preceding during the same months of such Commitment Period. The shortfall charge shall be calculated after the completion of each Commitment Period and billed the following month. Printed in U.S.A. <PAGE> AT&T COMMUNICATIONS CONTRACT TARIFF NO. 5776 Adm. Rates and Tariffs 1st Revised Page 5 Bridgewater, NJ 08807 Cancels Original Page 5 Issued: December 20, 1996 Effective: December 21, 1996 4. Contract Price - AT&T reserves the right to increase from time to time the rates for the Services Provided under this Contract Tariff, regardless of any provisions in this Contract Tariff that would otherwise stabilize rates or limit rate increases, as a result of charges imposed on AT&T stemming from an order, rule or regulation of the Federal Communications Commission or a court having competent jurisdiction relating to compensation of payphone service providers. If necessary, revisions will be filed in this Contract Tariff to reflect the actual rates. A. AT&T SDN Services - The Contract Price for the AT&T SDN Services provided under this Contract Tariff is the same as the undiscounted Recurring and Nonrecurring Rates and Charges specified in AT&T Tariff F.C.C. No. 1, as amended from time to time, except for those Usage Rates as specified in Section 7., following. B. AT&T DNS Service - The Contract Price for the AT&T DNS Service provided under N this Contract Tariff is the same as the undiscounted Recurring and Nonrecurring Rates and Charges specified in AT&T Tariff F.C.C. No. 1, as amended from time to time. N C. AT&T MEGACOM Service - The Contract Price for the AT&T MEGACOM Service provided under this Contract Tariff is the same as the undiscounted Recurring and Nonrecurring Rates and Charges specified in AT&T Tariff F.C.C. No. 1, as amended from time to time, except for those Usage Rates as specified in Section 7., following, which apply for AT&T MEGACOM Service calls that originate at no more than 15 Customer Switches, and at no more than 2 Customer Premises (not a Customer Switch) designated by the Customer prior to the CISD. A Customer Switch is a telecommunications switch (including all remote switching modules under common control of the same central switch) with the following characteristics: (a) it is owned and operated by the Customer or an Affiliate of the Customer, or by an entity in which the Customer or an Affiliate of the Customer holds an ownership interest of at least 33%, or by an entity that holds an ownership interest in Customer or Affiliate of the Customer of at least 33%; (b) it is used for the transmission of calls that are routed by a Local Exchange Carrier to the Customer Switch using Feature Group D Access or a functional equivalent; (c) it is capable of interconnecting circuits or transferring calling between circuits; (d) it has a maximum capacity of at least 100,000 access lines and 16,000 trunk lines; (e) it is predominantly used to provide switched telecommunications service on a Common Carrier basis; and (f) it has the capability to provide signaling interfaces at CCITT standards of SS7 signaling. Provided the Customer Switch meets the foregoing definition, it is not necessary that all calls routed through the Customer Switch satisfy characteristic (b). D. AT&T 800 Services - The Contract Price for the AT&T 800 Services provided under this Contract Tariff is the same as the undiscounted Recurring and Nonrecurring Rates and Charges specified in AT&T Tariff F.C.C. Nos. 2 and 14, as amended from time to time, except for those Usage Rates as specified in Section 7., following. Printed in U.S.A. <PAGE> AT&T COMMUNICATIONS CONTRACT TARIFF NO. 5776 Adm. Rates and Tariffs 1st Revised Page 6 Bridgewater, NJ 08807 Cancels Original Page 6 Issued: December 20, 1996 Effective: December 21, 1996 4. Contract Price (continued) D. AT&T ACCUNET T1.5 Service Access Connections and the AT&T Primary Rate Interface - The Contract Price for the AT&T ACCUNET T1.5 Service Access Connections and the AT&T Primary Rate Interface provided under this Contract Tariff is the same as the undiscounted Recurring and Nonrecurring Rates and Charges specified in AT&T Tariff F.C.C. No. 9, as amended from time to time, except for those Rates for the AT&T Primary Rate Interface as specified in Section 7., following. E. AT&T Terrestrial 1.544 Mbps Local Channel Services - The Contract Price for the AT&T Terrestrial 1.544 Mbps Local Channel Services provided under this Contract Tariff is the same as the undiscounted Recurring and Nonrecurring Rates and Charges specified in AT&T Tariff F.C.C. No. 11, as amended from time to time. 5. Discounts - The following discounts are the only discounts that apply to the Services Provided under this Contract Tariff. No other discounts apply. A. AT&T SDN Services 1. Base Discounts - The Customer will receive the following discounts, each month, in lieu of those specified for the SDN Term and Volume Plan (TVP) in AT&T Tariff F.C.C. No. 1. These discounts will be applied in the same manner as the SDN TVP as specified in AT&T Tariff F.C.C. No. 1, as amended from time to time. For Gross Monthly Domestic SDN Services Usage on Amounts: Discount ----------------- -------- Between $0 up to $13,000,000 46.5% No discount will apply for any Gross Monthly Domestic SDN Services Usage in excess of $13,000,000. D 2. Additional Discounts - The Customer will receive an additional 32% discount, N each month, in lieu of the discounts specified for the AT&T SDN International Term Plan (ITP) in AT&T Tariff F.C.C. No. 1. This discount will be applied in the same manner as the ITP as specified in AT&T Tariff F.C.C. No. 1, as amended from time to time. No discount will apply for any Gross Monthly International SDN Services Usage in excess of $2,400,000. N Printed in U.S.A. </TABLE> <PAGE> AT&T COMMUNICATIONS CONTRACT TARIFF NO. 5776 Adm. Rates and Tariffs Original Page 6.1 Bridgewater, NJ 08807 Issued: December 20, 1996 Effective: December 21, 1996 ** All material on this page is new. ** 5. Discounts (continued) B. AT&T DNS Discounts - The following discounts for AT&T DNS are applied to AT&T DNS usage charges in the billing month in which the AT&T DNS charges are billed. 1. Base Discounts - The following discounts will be applied monthly using the same method as specified in Section 6.12. of AT&T Tariff F.C.C. No. 1 (Method Of Determining Discount). (a) The Customer will receive the following discounts, each month, on all domestic direct dialed (1+) AT&T DNS monthly usage charges. 0% discount on the amounts over $0 up to $10,000.00 10% discount on the amounts over $10,000.00 up to $20,000.00 9% discount on the amounts over $20,000.00 (b) The Customer will receive the following discounts, each month, on international direct dialed (1+) AT&T DNS monthly usage charges: 0% discount on the amounts over $0 up to $5,000.00 12% discount on the amounts over $5,000.00 up to $15,000.00 16% discount on the amounts over $15,000.00 up to $60,000.00 18% discount on the amounts over $60,000.00 up to $200,000.00 20% discount on the amounts over $200,000.00 2. Additional Discounts - None. Printed in U.S.A. <PAGE> AT&T COMMUNICATIONS CONTRACT TARIFF NO. 5776 Adm. Rates and Tariffs 1st Revised Page 7 Bridgewater NJ, 08807 Cancels Original Page 7 Issued: December 20, 1996 Effective: December 21, 1996 5. Discounts (continued) C. AT&T MEGACOM Service T 1. Base Discounts (a) The Customer will receive a 35.1% discount, each month, on domestic AT&T MEGACOM Service usage. (b) The Customer will receive one of the following discounts, each month, on all AT&T MEGACOM Service International Calling Capability usage charges for that month, based on the total Gross Monthly Usage Charges for AT&T MEGACOM Service International Calling Capability, AT&T 800 Service-Canada, AT&T MEGACOM 800 Service-Canada, AT&T MEGACOM 800 Service-Mexico, AT&T MEGACOM 800 Service-Overseas, AT&T 800 READYLINE Service-Canada, AT&T 800 READYLINE Service-Mexico, AT&T 800 READYLINE Service-Overseas, AT&T SDN International Calling Capability, and AT&T GSDN Service. Gross Monthly Usage Charges Discount --------------------------- -------- At least $0 up to $1,500,000 5.0% At least $1,500,000 up to $2,000,000 7.5% At least $2,000,000 up to $3,000,000 10.0% No discount will apply to any Gross Monthly Usage Charges in excess of $3,000,000. 2. Additional Discounts - None. D. AT&T 800 Services T 1. Base Discounts - The Customer will receive the following discounts as specified below, each month, in lieu of those specified for the Customer Specific Term Plan II (CSTP II) and the Revenue Volume Pricing Plan (RVPP) in AT&T Tariff F.C.C. No. 2. These discounts will be applied in the same manner as the CSTP II as specified in AT&T Tariff F.C.C. No. 2, as amended from time to time. (a) The Customer will receive one of the following discounts, each month, on all AT&T 800 Services usage charges. Gross Monthly AT&T MEGACOM 800 Service-Domestic, AT&T 800 READYLINE Service-Domestic, and AT&T 800 Service-Domestic Usage Charges Discount ------------- -------- At least $0 up to $2,000,000 0.0% At least $2,000,000 up to $15,000,000 45.0% No discount will apply to any Gross Monthly AT&T MEGACOM 800 Service-Domestic, AT&T 800 READYLINE Service-Domestic and AT&T 800 Service-Domestic Usage Charges in excess of $15,000,000. 2. Additional Discounts - None. Printed in U.S.A. <PAGE> AT&T COMMUNICATIONS CONTRACT TARIFF NO. 5776 Adm. Rates and Tariffs 1st Revised Page 8 Bridgewater, NJ 08807 Cancels Original Page 8 Issued: December 20, 1996 Effective: December 21, 1996 6. Classifications, Practices and Regulations ------------------------------------------ A. Except as otherwise provided in this Contract Tariff, the rates and regulations that apply to the Services Provided specified in Section 1., preceding, are as set forth in the AT&T tariffs that are referenced in Section 1., preceding, as such tariffs are amended from time to time. B. Monitoring Conditions - The Customer must satisfy the following Service Requirements. The Service Requirement in 6.B.1.(e), 6.B.1.(f) and 6.B.1.(g) will be monitored on each monthly anniversary of the CISD and the Monitoring Period is the billing month immediately preceding each monthly anniversary of the CISD. The Service Requirements in 6.B.1.(a), 6.B.1.(b), 6.B.1.(c) and 6.B.1.(d) will be monitored at each six-month anniversary of the CISD, and the Monitoring Period is the six billing months immediately preceding each six-month anniversary of the CISD. The Service Requirement in 6.B.1.(h) will be monitored at the six-month anniversary of the CISD, and the Monitoring Period is the first six months of the Contract Tariff term. 1. AT&T SDN, AT&T DNS, AT&T MEGACOM and AT&T 800 Services N (a) At least 95% of the total inbound and outbound interLATA services obtained by the Customer and its Affiliates from common carriers (not including Customer or its Affiliates) must be obtained by the Customer directly from AT&T, including any future inbound and outbound interLATA services the Customer obtains as a result of a merger or acquisition for which the Customer directly or indirectly controls the choice of Interexchange Carrier. Services under commitment to another Interexchange Carrier at the time of such merger or acquisition shall not be subject to this provision for the term of such commitment, unless the charges the Customer would incur to terminate such commitment would be less than $10,000. (b) No more than 40% of the Customer's total AT&T MEGACOM Service-International Calling Capability minutes of use provided under this Contract Tariff may terminate in Argentina. (c) At least 60% of the Customer's AT&T MEGACOM Service minutes of use from Customer Switches and Customer Premises at which AT&T MEGACOM Service is provided under this Contract Tariff must be interstate. Printed in U.S.A. <PAGE> AT&T COMMUNICATIONS CONTRACT TARIFF NO. 5776 Adm. Rates and Tariffs 1st Revised Page 9 Bridgewater, NJ 08807 Cancels Original Page 9 Issued: December 20, 1996 Effective: December 21, 1996 6.B.1. AT&T SDN, AT&T DNS, AT&T MEGACOM and AT&T 800 Services (continued) N (d) At least 50% of the Customer's AT&T SDN Services minutes of use from Customer Switches and Customer Premises at which AT&T SDN Service is provided under this Contract Tariff must be interstate. (e) No more than 20% of the Customer's total Intrastate AT&T SDN Services minutes of use from Customer Switches and Customer Premises at which AT&T SDN Services are provided under this Contract Tariff may be generated in any one state. (f) No more than 13% of the Customer's total Intrastate AT&T SDN Services minutes of use from Customer Switches and Customer Premises at which AT&T SDN Services are provided under this Contract Tariff may be from the following group of states: Colorado, Idaho, Maine, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, South Dakota, Utah and Vermont. (g) At least 20% of the Customer's total Intrastate AT&T SDN Services minutes of use from Customer Switches and Customer Premises at which AT&T SDN Services are provided under this Contract Tariff must be from the following group of states: California, Illinois, Michigan, Massachusetts and New Jersey. (h) By the end of the sixth month of the Contract Tariff term, the Customer must have placed service orders for the installation of service under this Contract Tariff at locations not currently served by AT&T that the Customer demonstrates will generate monthly charges under this Contract Tariff of at least $333,333. <TABLE> <S> <C> If the Customer, during the Monitoring Period, has failed to satisfy the Service Requirement in 6.B.1.(a), the Customer will be billed an amount equal to 15% of the Customer's total billed usage charges for the AT&T SDN, AT&T DNS, AT&T MEGACOM and AT&T 800 Services, after the application of the Discounts in Section 5., preceding, for that Monitoring Period. If the Customer, during the N Monitoring Period, has failed to satisfy the Service Requirement in 6.B.1.(b), the Customer will be billed an amount equal to $0.08 per minute for each minute of such use above the 40%. If the Customer, during the Monitoring Period, has failed to satisfy the Service Requirement in 6.B.1.(c), the Customer will be billed an amount equal to .351 multiplied by the total undiscounted usage charges for AT&T MEGACOM service for that Monitoring Period in excess of the 60% threshold. If the Customer, during the Monitoring Period has failed to satisfy the Service Requirement in 6.B.1.(d), the Customer will be billed an amount equal to .465 multiplied by the total undiscounted usage charges for AT&T SDN services for that Monitoring Period in excess of the 50% threshold. If the Customer has failed to satisfy the Service Requirement in 6.B.1.(e) for any two consecutive Monitoring Periods, the Customer will be billed, for each state Printed in U.S.A. <PAGE> AT&T COMMUNICATIONS CONTRACT TARIFF NO. 5776 Adm. Rates and Tariffs 1st Revised Page 10 Bridgewater, NJ 08807 Cancels Original Page 10 Issued: December 20, 1996 Effective: December 21, 1996 6.B.1. AT&T SDN, AT&T DNS, AT&T MEGACOM and AT&T 800 Services (continued) N for which the 20% threshold is exceeded, an amount equal to $0.20 multiplied by the Customer's total Intrastate AT&T SDN Services minutes of use from Customer Switches and Customer Premises at which AT&T SDN Services are provided under this Contract Tariff generated in that state in excess of the 20% threshold. If the Customer has failed to satisfy the Service Requirement in 6.B.1.(f) for any two consecutive Monitoring Periods, the Customer will be billed an amount equal to $0.20 multiplied by the Customer's total Intrastate AT&T SDN Services minutes of use from Customer Switches and Customer Premises at which AT&T SDN Services are provided under this Contract Tariff from the specified group of states in excess of the 13% threshold. If the Customer has failed to satisfy the Service Requirement in 6.B.1.(g) for any two consecutive Monitoring Periods, the Customer will be billed an amount equal to $0.20 multiplied by the Customer's total Intrastate AT&T SDN Services minutes of use from Customer Switches and Customer Premises at which AT&T SDN Services are provided under this Contract Tariff from the specified group of states by which the Customer failed to meet the 20% minimum requirement. In calculating any charges due for failure to meet the Service Requirements 6.B.1.(e), 6.B.1.(f), and 6.B.1.(g), the Customer will not be required to pay more than once for a failure to meet any one such Service Requirement in a given Monitoring Period (i.e., it the Customer fails to meet a Service Requirement for three consecutive Monitoring Periods, the Customer will be billed only once with respect to the failure to meet the Service Requirement in the second month). If the Customer, during the Monitoring Period, has failed to satisfy the Service Requirement in 6.B.1.(h), the AT&T MEGACOM 800 Service and AT&T 800 READYLINE Service base discount pursuant to section 5.C.1.(a), preceding, for Gross Monthly AT&T MEGACOM 800 Service-Domestic and AT&T 800 READYLINE Service-Domestic usage on amounts of at least $2,000,000 up to $15,000,000 will be decreased from 45% to 42% for the remainder of the Contract Tariff Term. Any charge for amounts billed under this section must be paid by the Customer within 30 days. C. Promotions, Credits and Waivers The Customer is ineligible for any promotions, credits or waivers for the Services Provided under this Contract Tariff, which are filed or which may be filed in the AT&T tariffs specified in Section 1., preceding. The following credits and waivers will be applied to the Customer's bill for the Services Provided under this Contract Tariff. If the sum of all credits applied in the final month of service under this Contract Tariff exceeds the amount of the Customer's final bill, the amount in excess will be refunded to the Customer. If at the end of the Contract Tariff Term the Customer has not fully used any or all of the waiver(s) specified in this Section, the residual value of any such waiver(s) will be set to zero and will not be applied to any other AT&T services. Printed in U.S.A. <PAGE> AT&T COMMUNICATIONS CONTRACT TARIFF NO. 5776 Adm. Rates and Tariffs 1st Revised Page 11 Bridgewater, NJ 08807 Cancels Original Page 11 Issued: December 20, 1996 Effective: December 21, 1996 ** All material on this page is new. ** 6.C. Promotions, Credits and Waivers (continued) 1. AT&T MEGACOM Service, AT&T SDN Service and AT&T 800 Services N </TABLE> <TABLE> <S> <C> (a) AT&T will waive the Nonrecurring Installation Charges for AT&T Primary Rate Interface (PRI) Office Functions; AT&T Terrestrial 1.544 Mbps Local Channels, associated AT&T ACCUNET T1.5 Service Access Connections, and Access Coordination Functions (ACF). Also, AT&T will reimburse the Customer for any other vendor's Nonrecurring Charges for obtaining access comparable to Terrestrial 1.544 Mbps Local Channels (not to exceed charges specified in AT&T Tariff F.C.C. No. 11), and waive the Nonrecurring Charge for the ACF and the AT&T Tariff F.C.C. No. 9 Access Connection Charge. Such Local Channels and AT&T PRI must: (1) be used with the AT&T MEGACOM Service, AT&T SDN Service and/or the AT&T MEGACOM 800 Service-Domestic provided under this Contract Tariff (2) for the Local Channels, not be connected to an Office Function (except for AT&T PRI Office Functions). If any of these Local Channels are connected to an Office Function, AT&T will bill the Customer for the amount of the Installation Charges N that had been waived under this section for each Local Channel connected to an Office Function (except for AT&T PRI Office Functions). The maximum amount of waived Nonrecurring Installation Charges shall not exceed $200,000. (b) AT&T will reimburse the Customer the local exchange company Carrier Change N Charge up to a maximum of $5.00 for each local exchange service access line converted, subject to a maximum reimbursement of $750,000 in any billing month; any excess may not be carried into following months and the Customer must provide evidence of all charges incurred in order to qualify for the reimbursement. There is an allowance of two reimbursements per local exchange company service access line for SDN. The reimbursed charge(s) will be a credit applied to the Customer's future SDN usage charges. (c) AT&T will provide a monthly credit in the amount of $200 per AT&T PRI Office Function utilized by the Customer. The maximum amount of the monthly credit will be $10,000. N (d) AT&T will waive the Service Establishment Charge, not to exceed a total of $10,000 for the Contract Tariff Term for the AT&T MEGACOM Service provided under this Contract Tariff and AT&T will waive the Service Establishment Charges for new AT&T MEGACOM 800 Service-Domestic Routing Arrangements. </TABLE> 2. AT&T MEGACOM Service (a) For the first through eighteenth months of the term, AT&T will apply a monthly credit, not to exceed $250,000 per month, equal to: (1) the total billed usage charges for AT&T MEGACOM Service International Calling Capability which terminates in Mexico, after the application of the Discounts in Section 5.B., preceding, in the month for which the credit is to be applied, minus (2) $0.475 multiplied by the Customer's total minutes of use for AT&T MEGACOM Service International Calling Capability which terminates in Mexico for that same month. Printed in U.S.A. <PAGE> AT&T COMMUNICATIONS CONTRACT TARIFF NO. 5776 Adm. Rates and Tariffs Original Page 11.1 Bridgewater, NJ 08807 Issued: December 20, 1996 Effective: December 21, 1996 ** All material on this page is new. ** 6.C. Promotions, Credits and Waivers (continued) 3. AT&T DNS Service (a) AT&T will reimburse the Customer the local exchange company Carrier Change Charge up to a maximum of $5.00 for each local exchange service access line converted, subject to a maximum reimbursement of $5,000 in any billing month; any excess may not be carried into following months and the Customer must provide evidence of all charges incurred in order to qualify for the reimbursement. There is an allowance of two reimbursements per local exchange company service access line for SDN. The reimbursed charge(s) will be a credit applied to the Customer's future SDN or DNS usage charges. (b) AT&T will apply a credit to the Customer's DNS bill, each month, for all domestic DNS Direct Dial (1+) usage charges in the billing month following the initial application of the discounts in Section 5.B.1.(a), preceding, in an amount, not less than zero, equal to: (a) the Customer's total undiscounted domestic DNS Direct Dial (1+) usage charges from such locations for the preceding month multiplied by 43%, minus (b) the previously applied DNS discounts under Section 5.B.1.(a), preceding, for such usage in that month. (c) AT&T will apply a credit, each month, in an amount not less than zero, equal to (a) the Customer?s total billed interstate usage charges during the preceding month, after the application of the previously applied DNS discounts under Section 5.B.1.(a), preceding, and the credit specified in Section 6.3.C (b), preceding, minus (b) the number of minutes for AT&T DNS interstate service usage during the preceding month multiplied by (c) $0.105. (d) AT&T will apply a credit, each month, equal to 38% of the Customer's international direct dial (1+) AT&T DNS billed usage charges, after the discount specified in Section 5.B.1.(b), preceding. This credit will be applied to the Customer's DNS bill in the 1st billing month following the month in which the international direct dial (1+) AT&T DNS usage charges, after the discount specified in Section 5.B.1.(b), preceding, has been applied, were incurred. Printed in U.S.A. <PAGE> AT&T COMMUNICATIONS CONTRACT TARIFF NO. 5776 Adm. Rates and Tariffs 1st Revised Page 12 Bridgewater, NJ 08807 Cancels Original Page 12 Issued: December 20, 1996 Effective: December 21, 1996 6. Classifications, Practices and Regulations (continued) D. Discontinuance - In lieu of any Discontinuance With or Without Liability provisions that are specified in AT&T Tariff F.C.C. Nos. 1 and 2, the following provisions shall apply. 1. The Customer may discontinue this Contract Tariff: <TABLE> <S> <C> (a) effective at the end of the 18th month following the CISD, provided the Customer provides at least 30 days prior written notice of discontinuance; is current in payment to AT&T for all telecommunication services; and has generated at least $120,000,000 in usage charges, after the application of the Discounts as specified in Section 5., preceding, for the AT&T SDN Services, AT&T DNS C Service, AT&T MEGACOM Service including the International Calling Capability and the AT&T 800 Services provided under this Contract Tariff (including at least N $15,000,000 in usage charges for the AT&T 800 Service-Canada, AT&T MEGACOM 800 Service-Canada, AT&T MEGACOM 800 Service-Mexico, AT&T MEGACOM 800 Service-Overseas, AT&T 800 READYLINE Service-Canada, AT&T 800 READYLINE Service-Mexico, AT&T 800 READYLINE Service-Overseas, AT&T 800 READYLINE Service-Puerto Rico and the U.S. Virgin Islands, AT&T MEGACOM Service International Calling Capability, AT&T SDN International Calling Capability, and AT&T GSDN Service provided under this Contract Tariff); or (b) prior to the 18th month following the CISD, provided the Customer replaces the Services Provided under this Contract Tariff: I. with service under a new AT&T Contract Tariff having all of the following characteristics: (i) revenue commitment(s) equal to or greater than an average of at least $7,500,000 per month; (ii) a new term of at least the difference between 18 months and the number of months the Customer was in this Contract C Tariff; and (iii) having the same Service Requirement as specified in Section 6.B.1.(a), preceding, or II. with service under a new contract entered into between AT&T and the Customer for the provision of telecommunications service by AT&T to the Customer having all of the following characteristics: (i) revenue commitment(s) equal to or greater than an average of at least $7,500,000 per month; (ii) a new term of at least the difference between 18 months and the number of months the Customer was in this Contract Tariff; and (iii) having the same Service Requirement as C specified in Section 6.B.1.(a), preceding. If the Customer discontinues this Contract Tariff pursuant to this Section 6.D.1.(b), the Customer will also be billed an amount equal to the difference between: (i) the MRC for the Commitment Period in which the Customer discontinues divided by the number of months in the Commitment Period, times the number of months the Customer was in this Contract Tariff for that Commitment Period and (ii) the actual usage charges, after the application of the Discounts as specified in Section 5., preceding, incurred in that Commitment Period for the AT&T SDN Services, AT&T DNS Service, AT&T MEGACOM Service including the International Calling Capability and the AT&T 800 Services, provided the amount in (ii) is less than the amount in (i). N N </TABLE> Printed in U.S.A. <PAGE> AT&T COMMUNICATIONS CONTRACT TARIFF NO. 5776 Adm. Rates and Tariffs 1st Revised Page 13 Bridgewater, NJ 08807 Cancels Original Page 13 Issued: December 20, 1996 Effective: December 21, 1996 6.D. Discontinuance (continued) <TABLE> <S> <C> If the Customer discontinues this Contract Tariff for any reason other than specified above, prior to the expiration of the Contract Tariff Term, Termination Charges will apply. The Termination Charge for the AT&T SDN Services, AT&T DNS Service, AT&T MEGACOM Service including the International Calling Capability and the AT&T 800 Services will be an amount equal to: (1) the MRC for the Commitment Period in which the Customer discontinues minus the N actual usage charges, after the application of the Discounts as specified in Section 5., preceding, incurred in that Commitment Period for the AT&T SDN Services, AT&T MEGACOM Service including the International Calling Capability and the AT&T 800 Services, provided the actual usage charges, are less than the MRC for that Commitment Period and (2) 100% of the MRCs for each remaining year of the Contract Tariff Term. </TABLE> E. Other Requirements 1. Use of Services Provided for Resale or Shared Use - When the Services Provided under this Contract Tariff are resold or shared, the Customer may advise its User that a portion of the Customer's service is provided by AT&T. However, the Customer shall not publish or use any advertising, sales promotions, press releases or other publicity matters which use AT&T's corporate or trade names, logos, trademarks, service marks, trade dress, or other symbols that serve to identify and distinguish AT&T from its competitors (or which use confusingly similar corporate or trade names, logos, trademarks, service marks, trade dress or other symbols), and the Customer may not conduct business under AT&T's corporate or trade names, logos, trademarks, service marks, trade dress, or other symbols that serve to identify and distinguish AT&T from its competitors (or under any confusingly similar corporate or trade names, logos, trademarks, service marks, trade dress or other symbols), except to the limited extent as is permissible under contract or applicable law. If AT&T finds that the Customer, in connection with its resale of the Services Provided under this Contract Tariff, is using AT&T's corporate or trade names, logos, trademarks, service marks, trade dress or other symbols that serve to identify and distinguish AT&T from its competitors, in a manner inconsistent with the provisions specified above, AT&T shall provide reasonable notice of such inconsistent use to the Customer. If the Customer fails, within 30 days after the receipt of such notice, to substantiate to AT&T that such inconsistent use has ended or has been corrected, the Discounts specified in Section 5., preceding, will not apply until such time as the inconsistent use has ended or has been corrected and substantiated to AT&T. Any such suspension of the Discounts specified in Section 5., preceding, shall not relieve the Customer from its obligations to comply with any other conditions contained in this Contract Tariff, including the Minimum Revenue Commitments. If it is finally determined by adjudication (or, if agreed by AT&T and the Customer, by arbitration) that AT&T's initial finding of an inconsistent use was in error, then the Customer shall receive a credit equal to the amount of the discounts that were not applied as a result of AT&T's initial finding, and AT&T's initial finding will have no further effect. Printed in U.S.A. <PAGE> AT&T COMMUNICATIONS CONTRACT TARIFF NO. 5776 Adm. Rates and Tariffs Original Page 14 Bridgewater, NJ 08807 Issued: October 31, 1996 Effective: November 1, 1996 **All material on this page is new** 6.E.1. USE OF SERVICES PROVIDED FOR RESALE OR SHARED USE (CONTINUED) The Customer shall take such steps as are reasonably possible to ensure that no other Carrier to which the Customer directly or indirectly resells the Services Provided under this Contract Tariff, takes any action that, if done directly by Customer, would violate this Section 6.E.1., and if such other Carrier does take such actionm the Customer shall take such steps as are reasonbly possible to cause the inconsistent use by such other Carrier to be ended or corrected, to AT&T's reasonable satisfaction. If AT&T finds that the Customer has failed to take such action as is required pursuant to the preceding paragraph, AT&T shall provide reasonable notice of such failure to the Customer. If the Customer fails, within 30 days after the receipt of such notice, to substantiate to AT&T that the inconsistent use by the other Carrier has ended or has been corrected or the Customer has taken the steps required under the preceding paragraph. The Discounts specified in Section 5., preceding, will not apply, with respect to the billing partition that includes such other Carrier, until such time as the Customer has substantiated to AT&T that it has taken the required steps. Any such suspension of the Discounts specified in Section 5., preceding, shall not relieve the Customer from its obligations to comply with any other conditions contained in this Contract Tariff, including the Minimum Revenue Commitments. If it is finally determined by adjudication (or, if agreed by AT&T and the Customer, by arbitration) that AT&T's initial finding of a failure by Customer to take required steps was in error, then the Customer shall receive a credit equal to the amount of the discounts that were not applied as a result of AT&T's initial finding, and AT&T's initial finding will have no further effect. 2. The Vertical Features of AT&T Tariff F.C.C. No. 2, Section 3.3.2.L are not available for use with the Services Provided under this Contract Tariff when an entity other than AT&T is the Resp Org. 3. Beginning February 1, 1997, the bills for the Services Provided under this Contract Tariff will be sent to one Customer Premises designated by the Customer. Printed in U.S.A. <PAGE> AT&T COMMUNICATIONS CONTRACT TARIFF NO. 5776 Adm. Rates and Tariffs 1st Revised Page 15 Bridgewater, NJ 08807 Cancels Original Page 15 Issued: December 20, 1996 Effective: December 21, 1996 6. Classifications, Practices and Regulations (continued) F. Availability - This Contract Tariff was developed pursuant to a contract with an Interexchange Carrier Customer who: (1) will order this Contract Tariff only once, either by the Customer or any Affiliate of the Customer, which is any entity that owns a controlling interest in either the Customer or an Affiliate of the Customer, or any entity in which a controlling interest is owned by either the Customer or an Affiliate of the Customer; (2) as of the time the Customer orders service, has obtained required operating authority in the states in which it conducts business and files tariffs, when required by law, with state and federal authorities; (3) as of the time the Customer orders service, has been assigned its own Carrier Identification Code by the code administrator, which code is used by one or more Local Exchange Carriers to route calls originated by an end user on a 1+ basis to each Customer Switch as defined in Section 4.B., preceding; (4) has incurred at least $10,000,000 in AT&T Private Line Services, applicable to Contract Tariffs, during the 12-months immediately preceding the date the Customer orders this Contract Tariff; (5) has incurred at least $55,000,000 in AT&T SDN Services and AT&T 800 Services, applicable to Contract Tariffs, during the 12-months immediately preceding the date the Customer orders this Contract Tariff; and (6) provides service as a Common Carrier to at least 300,000 locations. This Contract Tariff is available to any similarly situated Customer who ordered service in a previous availability period or who orders service within 30 days after December 21, 1996 for initial installation of the Services Provided under this Contract Tariff within 30 days after the date ordered. <TABLE> <S> <C> G. Abuse of the Services - Willfully using the Services to carry calls that originate on the network of a facilities-based Interexchange carrier other than AT&T or the Customer or an Affiliate of the Customer and terminate disproportionately to locations for which the incumbent Local Exchange Carrier?s rate for terminating switched access is higher than $0.049 per minute constitutes abuse of service. In the event that AT&T believes in good faith that C such abuse is occurring, AT&T will provide written notice of such abuse to Customer, including as much detail as is reasonably sufficient to enable Customer to investigate the matter. If, within five (5) business days after its C receipt of such notice, the abuse has not ended, or Customer has not demonstrated to AT&T?s reasonable satisfaction that the abuse is not in fact occurring, AT&T may terminate, restrict, or suspend Service to the location(s), and only the location(s) at which such abuse is occurring. This section applies in addition to any other provision of the tariffs referenced in Section 1., preceding, that may apply with respect to abuse of service. </TABLE> Printed in U.S.A.