Rockville, MD -- October 26, 2004

CCMI, the Center for Telecommunications Management information, reported today that the number of negotiated telecom deals dropped significantly in September to 247 from August's 350, with the average minimum annual revenue commitment (MARC) for long distance deals falling as well to an average just under $800,000. The net effect was a 9.06% increase in the CCMI Negotiated Rate Index which is based on all deals containing long distance services published in the month of September 2004.

"While volume and price are not always directly linked - oftentimes the preparation and skills of the negotiations teams is a larger determinant - the increase in the Index is primarily a reflection of the smaller scale of most of the deals posted in September.", said Glenn Powell, CCMI's Director of Product Development. "Whether this is a trend, or just a result of the normal business slow down during August vacation season remains to be seen." Average negotiated deal term length is steady around 24 months for all carriers.

CCMI Telecom Price Index Summary Report

LD Negotiated Telecom Price Index

Rack Rate Index:
September 2004 - 108.73 Index, +0.00% Change
August 2004 - 108.73 Index, +0.00% Change
July 2004 - 108.73 Index, +5.28% Change

Negotiated Rate Index:
September 2004 - 91.51 Index, +9.06% Change
August 2004 - 83.9 Index, -5.23% Change
July 2004 - 88.54 Index, -1.43% Change

Average MARC:
September 2004 - $772,844
August 2004 - $1,695,838
July 2004 - $1,324,935


Retail Telecom Price Index

Small Business:
September 2004 - 107.28 Index, +0.0% Change
August 2004 - 107.28 Index, +0.00% Change
July 2004 - 107.28 Index, -0.05% Change

Medium Business:
September 2004 - 106.41 Index, +0.05% Change
August 2004 - 106.35 Index, +0.03% Change
July 2004 - 106.32 Index, +0.00% Change

Large Business:
September 2004 - 112.56 Index, +0.14% Change
August 2004 - 112.40 Index, +0.01% Change
July 2004 - 112.39 Index, +1.93% Change

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

Meanwhile, CCMI's Retail Price Index of telecom prices rose slightly in September for medium and large business markets, while the small business market remained unchanged for the second month in a row. The increases in September were driven by intrastate price increases for both inbound and outbound long distance. September is the second month in a row that the large and medium business basket price index increased as a result of higher intrastate long distance prices. The Retail Price Index measures telecom service price trends for standard, non-negotiated service offerings.

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



info@ccmi.com
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