Products and Services Revenues

6 Months Ended

Jun. 30, 2011

Products and Services Revenues

Products and Services Revenues

(9) Products and Services Revenues

We are an integrated communications company engaged primarily in providing an array of communications services, including local and long distance voice, wholesale network access, broadband, other data services and video services. We strive to maintain our customer relationships by, among other things, bundling our service offerings to provide our customers with a complete offering of integrated communications services. Currently, we categorize our products and services into the following four categories:

• Strategic services, which include primarily private line (including special access), broadband, MPLS, hosting, video, voice over Internet Protocol, or VoIP, services and Verizon Wireless services;

• Legacy services, which include primarily local, long-distance, access, integrated services digital network, or ISDN, services and traditional wide area network, or WAN, services; and

• Data integration, which is telecommunications equipment we sell that is located on customers' premises and related professional services. These services include network management, installation and maintenance of data equipment and building of proprietary fiber-optic broadband networks for our government and business customers.

• Affiliates and other services, which consist primarily of USF surcharges and services we provide to our affiliates. We provide to our affiliates data, local services and billing and collections services that we also provide to external customers. In addition, we provide to our affiliates: marketing, sales and advertising services; computer system development and support services; network support and technical services; and other support services, such as legal, regulatory, finance and accounting, tax and human resources.

Since the April 1, 2011 closing of the CenturyLink acquisition, our operations were integrated into and are reported as part of the segments of CenturyLink. CenturyLink's CODM has become our CODM and does not review Qwest-only segment information. Consequently, we no longer provide Qwest-only segment information.

Our operating revenues for our products and services consisted of the following categories for the successor three months ended June 30, 2011 and predecessor three months ended March 31, 2011 and predecessor three and six months ended June 30, 2010:

	Successor		Predecessor
	Three months ended June 30, 2011		Three months ended March 31, 2011		Three months ended June 30, 2010		Six months ended June 30, 2010
			(Dollars in millions)
Strategic services	$	1,206		1,201		1,149		2,287
Legacy services		1,317		1,395		1,499		3,056
Data integration		118		123		142		278
Affiliates and other services		128		127		140		275
Total operating revenues	$	2,769		2,846		2,930		5,896

Affiliates and other operating revenues include certain surcharges to our customers, including billings for our required contributions to several USF programs. Such amounts are reflected on a gross basis in our statements of operations (included in both operating revenues and expenses) and aggregated approximately $92 million for the successor three months ended June 30, 2011, $96 million for the predecessor three months ended March 31, 2011, $106 million for the predecessor three months ended June 30, 2010 and $207 million for the predecessor six months ended June 30, 2010.