CCMI, the Center for Telecommunications Management Information, today released a report showing that the total number of posted negotiated deals increased significantly in April with Sprint leading the way with 174 or over 40% of the new posted negotiated deals. SBC, with 62, continues to file the most deals of all the ILECs; however, BellSouth had a strong month as well with 44 new deals posted.

In April, the CCMI Long Distance (LD) Negotiated Price Index increased 1.44%, the first month-to-month increase we have seen since May 2004. This increase may be attributed to the relative large percentage of Sprint deals in this month's index. The LD Negotiated Price Index is based on all deals containing long distance services published in a given month. During the same period, Rack Rate prices have remained steady and Retail prices have been steadily rising.

"After a year of steady decreases in the LD Negotiated Price Index I was surprised to see an increase in this month's Index" commented CCMI's Director of Product Development, Glenn Powell. Continuing cautiously, Powell remarked "It's worth watching this Index closely over the next several months to see if this was a one-time anomaly or an indication of a new trend."

CCMI LD Negotiated Telecom Price Index Summary Report
LD Negotiated Telecom Price Index

Rack Rate Index:
April 2005 - 108.73 Index, +0.00% Change
March 2005 - 108.73 Index, +0.00% Change
February 2005 - 108.73 Index, +0.00% Change

Negotiated Rate Index:
April 2005 - 80.53 Index, +1.44% Change
March 2005 - 79.39 Index, -1.11% Change
February 2005 - 80.28 Index, -0.30% Change

Average MARC:
April 2005 - $378,881.52
March 2005 - $449,983.95
February 2005 - $377,999.40

During the same period of time retail telecom prices increased for all market baskets in April, with Small Business leading the way with a 0.28% increase followed closely by Large Business with a 0.25% increase. Medium Business only rose a modest 0.12%. Retail prices have increased twenty-one of the last twenty-four months. The price increases were driven by interstate private line and frame relay.

CCMI Retail Telecom Price Index Summary Report
Retail Telecom Price Index

Small Business:
April 2005 - 112.24 Index, +0.28% Change
March 2005 - 111.93 Index, +3.80% Change
February 2005 - 107.84 Index, +0.05% Change

Medium Business:
April 2005 - 102.29 Index, +0.12% Change
March 2005 - 102.17 Index, +0.59% Change
February 2005 - 101.56 Index, +0.10% Change

Large Business:
April 2005 - 113.41 Index, +0.25% Change
March 2005 - 113.12 Index, +0.05% Change
February 2005 - 113.06 Index, +0.02% Change

source: CCMI DealWatch, www.ccmi.com/dealwatch.html

About CCMI's Telecom Price Indexes Retail Telecom Price Index

The Retail Telecom Price Index consists of a market basket of services including local, long distance, frame relay and private line. Each profile was developed based on an annual survey of telecommunications spending habits conducted in cooperation with The Telecom Manager's Voice Report. May 2003 is the Telecom Price Index base month with an index of 100.

* Retail Small Business Profile - Monthly spend approximately $10,000 with regional orientation. Majority of spend is related to voice services with heaviest expenditures on local and outbound long distance services, little international traffic. Small amount spent on private line and frame relay services.

* Retail Medium Business Profile - Monthly spend approximately $45,000 with national orientation. Majority of spend is still related to voice services but with increasing expenditures on outbound and inbound long distance services. More international long distance and higher private line and frame relay spends.

* Retail Large Business Profile - Monthly spend approximately $175,000 with national and international operations. Heavy data and broadband use with significant increase in frame relay spending. Long distance services represent a majority of the voice service monthly spend.

Negotiated Telecom Price Index

The Negotiated Telecom Price Index measures two key benchmark prices. The Rack Rate Index tracks the undiscounted average cost per minute of long distance calling using the calling profile for a typical domestic large business user. The Negotiated Rate Index uses the same profile and calculates the average cost per minute based on negotiated service contracts between large users and major long distance service providers. January 2004 is the Negotiated Price Index base month with an index of 100.

CCMI publishes the Negotiated and Retail Price Indexes monthly.

About CCMI
Founded in 1971, CCMI is the telecom industry's leading source for telecom information and applications. Our products and services help thousands of telecom providers and end-users, in the US and abroad, compete effectively, meet deadlines, cut costs and work smarter. From our industry standard telecom databases to the most comprehensive online repository of rate and tariff documents, to the most flexible network design and pricing application on the market -- CCMI delivers reliable information & innovative, practical solutions. More information on CCMI's conferences, products, and services can be found at www.ccmi.com.

Contacts:
Glenn Powell
Director, Product Development
CCMI
301-287-2383
gpowell@ccmi.com

Michele Campbell
Marketing Manager
CCMI
301-287-2641
mcampbell@ccmi.com