UBS said in a report Thurs. that the Bells have signed commercial...
UBS said in a report Thurs. that the Bells have signed commercial agreements with 30-50% of their UNE-P base of 16 million lines. The report provided some of the most complete numbers yet on commercial agreements to replace UNE-P.…
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Not all Bells have provided complete numbers. BellSouth didn’t give a line count for a contract it signed with AT&T citing a confidentiality agreement with the CLEC. UBS said UNE-P contracts will give Bells a “modest boost” of $95 million in EBITDA or roughly 35 basis points of wireline margins for the Bells collectively. The Bells obtained deals about $4 per line higher than under UNE-P regulation, UBS said. On the negative side, UBS sees a base dwindling by 6.5 million to 9.8 million over 5 years based on 3.5% monthly churn. Qwest likely has agreements on the highest percentage of lines, UBS said. UBS said BellSouth, following a deal with AT&T, has 38% of its UNE-P lines under agreements. For SBC the percentage is about 50% and for Verizon 38%, UBS said.