Rockville, MD -- September 30, 2004

CCMI, the Center for Telecommunications Management Information, reported today that its Negotiated Price Index continued its 2004 trend with the undiscounted "rack rate" index holding steady or increasing each month while the negotiated price index has shown steady or declining prices throughout the year. The Negotiated Price Index monitors telecom service price trends for contracts negotiated between telecom service providers and large and medium sized domestic U. S. businesses.

Meanwhile, CCMI's Retail Price Index of telecom prices rose slightly in August for the medium and large business markets, while the small business market index remained unchanged. August's increase marked the fifteenth time in the last sixteen months that retail prices moved upward. The medium business index increases in August were driven largely by advances posted for outbound and inbound long distance services. The large business increase was driven, as in prior months, by higher rates for inbound long distance services. August is the second month in a row that the large business basket price index increased as a result of higher inbound long distance prices. The Retail Price Index measures telecom service price trends for standard, non-negotiated service offerings.

CCMI Telecom Price Index Summary Report

Negotiated Telecom Price Index

Rack Rate Index:
August 2004 - 108.73 Index, +0.00% Change
July 2004 - 108.73 Index, +5.28% Change
June 2004 - 103.28 Index, +0.27% Change

Negotiated Rate Index:
August 2004 - 88.60 Index, +0.07% Change
July 2004 - 88.54 Index, -1.43% Change
June 2004 - 89.82 Index, -5.65% Change

Retail Telecom¿¿Price Index

Small Business:
August 2004 - 107.28 Index, +0.00% Change
July 2004 - 107.28 Index, -0.05% Change
June 2004 - 107.33 Index, +0.27% Change

Medium Business:
August 2004 - 106.35 Index, +0.03% Change
July 2004 - 106.32 Index, +0.00% Change
June 2004 - 106.32 Index, +0.00% Change

Large Business:
August 2004 - 112.40 Index, +0.01% Change
July 2004 - 112.39 Index, +1.93% Change
June 2004 - 110.26 Index, +0.13% 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



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