Common use of APPLICABLE DISCOUNTS Clause in Contracts

APPLICABLE DISCOUNTS. The Telecommunications Services available for purchase by McLeodUSA for the purposes of resale to McLeodUSA End Users shall be available at the following discount off of the retail rate. * When a CLEC provides Resale service in a cross boundary area (areas that are part of the local serving area of another state’s exchange) the rates, regulations and discounts for the tariffing state will apply. Billing will be from the serving state. ** In Tennessee, if CLEC provides its own operator services and directory services, the discount shall be 21.56%. CLEC must provide written notification to BellSouth within 30 days prior to providing its own operator services and directory services to qualify for the higher discount rate of 21.56%. *** Unless noted in this column, the discount for Business will be the applicable discount rate for CSAs. . 1 Grandfathered Services (Note 1) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 5 Lifeline/Link Up Services Yes Yes Yes Yes Yes Yes Note 3 Note 3 Yes Yes 6 911/E911 Services Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 7 N11 Services Yes Yes Yes Yes Yes Yes No No No No 8 AdWatchSM Svc (See Note 6) Yes No Yes No Yes No Yes No Yes No 10 Mobile Services Yes No Yes No Yes No Yes No Yes No 11 Federal Subscriber Line Charges Yes No Yes No Yes No Yes No Yes No 12 Non-Recurring Charges Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 13 End User Line Charge– Number Portability Yes No Yes No Yes No Yes No Yes No 1 Grandfathered Services (Note 1) Yes Yes Yes Yes Yes Yes Yes Yes 5 Lifeline/Link Up Services Yes Yes Yes Yes Yes Yes Yes Note 3

APPLICABLE DISCOUNTS. The Telecommunications Services available for purchase by McLeodUSA OnePoint for the purposes of resale to McLeodUSA OnePoint End Users shall be available at the following discount off of the retail rate. * When a CLEC provides Resale service in a cross boundary area (areas that are part of the local serving area of another state’s exchange) the rates, regulations and discounts for the tariffing state will apply. Billing will be from the serving state. ** In Tennessee, if CLEC provides its own operator services and directory services, the discount shall be 21.56%. CLEC must provide written notification to BellSouth within 30 days prior to providing its own operator services and directory services to qualify for the higher discount rate of 21.56%. *** Unless noted in this column, the discount for Business will be the applicable discount rate for CSAs. . 1 Grandfathered Services (Note 1) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 5 Lifeline/Link Up Services Yes Yes Yes Yes Yes Yes Note 3 Note 3 Yes Yes 6 911/E911 Services Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 7 N11 Services Yes Yes Yes Yes Yes Yes No No No No 8 AdWatchSM Svc (See Note 6) Yes No Yes No Yes No Yes No Yes No 10 Mobile Services Yes No Yes No Yes No Yes No Yes No 11 Federal Subscriber Line Charges Yes No Yes No Yes No Yes No Yes No 12 Non-Recurring Charges Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 13 End User Line Charge– Number Portability Yes No Yes No Yes No Yes No Yes No 1 Grandfathered Services (Note 1) Yes Yes Yes Yes Yes Yes Yes Yes 5 Lifeline/Link Up Services Yes Yes Yes Yes Yes Yes Yes Note 3

APPLICABLE DISCOUNTS. The Telecommunications Services available for purchase by McLeodUSA Xspedius for the purposes of resale to McLeodUSA Xspedius End Users shall be available at the following discount off of the retail rate. * When a CLEC provides Resale service in a cross boundary area (areas that are part of the local serving area of another state’s exchange) the rates, regulations and discounts for the tariffing state will apply. Billing will be from the serving state. ** In Tennessee, if CLEC provides its own operator services and directory services, the discount shall be 21.56%. CLEC must provide written notification to BellSouth within 30 days prior to providing its own operator services and directory services to qualify for the higher discount rate of 21.56%. *** Unless noted in this column, the discount for Business will be the applicable discount rate for CSAs. . 1 Grandfathered Services (Note 1) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 5 Lifeline/Link Up Services Yes Yes Yes Yes Yes Yes Note 3 Note 3 Yes Yes 6 911/E911 Services Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 7 N11 Services Yes Yes Yes Yes Yes Yes No No No No 8 AdWatchSM Svc (See Note 6) Yes No Yes No Yes No Yes No Yes No 10 Mobile Services Yes No Yes No Yes No Yes No Yes No 11 Federal Subscriber Line Charges Yes No Yes No Yes No Yes No Yes No 12 Non-Recurring Charges Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 13 End User Line ChargeCharge – Number Portability Yes No Yes No Yes No Yes No Yes No 1 Grandfathered Services (Note 1) Yes Yes Yes Yes Yes Yes Yes Yes 5 Lifeline/Link Up Services Yes Yes Yes Yes Yes Yes Yes Note 3

APPLICABLE DISCOUNTS. The Telecommunications Services available for purchase by McLeodUSA Xspedius for the purposes of resale to McLeodUSA Xspedius End Users shall be available at the following discount off of the retail rate. * When a CLEC provides Resale service in a cross boundary area (areas that are part of the local serving area of another state’s exchange) the rates, regulations and discounts for the tariffing state will apply. Billing will be from the serving state. ** In Tennessee, if CLEC provides its own operator services and directory services, the discount shall be 21.56%. CLEC must provide written notification to BellSouth within 30 days prior to providing its own operator services and directory services to qualify for the higher discount rate of 21.56%. *** Unless noted in this column, the discount for Business will be the applicable discount rate for CSAs. . 1 Grandfathered Services (Note 1) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 5 Lifeline/Link Up Services Yes Yes Yes Yes Yes Yes Note 3 Note 3 Yes Yes 6 911/E911 Services Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 7 N11 Services Yes Yes Yes Yes Yes Yes No No No No 8 AdWatchSM Svc (See Note 6) Yes No Yes No Yes No Yes No Yes No 10 Mobile Services Yes No Yes No Yes No Yes No Yes No 11 Federal Subscriber Line Charges Yes No Yes No Yes No Yes No Yes No 12 Non-Recurring Charges Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 13 End User Line ChargeCharge – Number Portability Yes No Yes No Yes No Yes No Yes No 1 Grandfathered Services (Note 1) Yes Yes Yes Yes Yes Yes Yes Yes 5 Lifeline/Link Up Services Yes Yes Yes Yes Yes Yes Yes Note 33 8 AdWatchSM Svc (See Note 6) Yes No Yes No Yes No Yes No 10 Mobile Services Yes No Yes No Yes No Yes No 11 Federal Subscriber Line Charges Yes No Yes No Yes No Yes No 12 Non-Recurring Charges Yes Yes Yes Yes Yes Yes Yes No 13 End User Line Charge – Number Portability Yes No Yes No Yes No Yes No 1 Grandfathered services can be resold only to existing subscribers of the grandfathered service.

APPLICABLE DISCOUNTS. The Telecommunications Services available for purchase by McLeodUSA Premiere for the purposes of resale to McLeodUSA Premiere End Users shall be available at the following discount off of the retail rate. * When a CLEC provides Resale service in a cross boundary area (areas that are part of the local serving area of another state’s exchange) the rates, regulations and discounts for the tariffing state will apply. Billing will be from the serving state. ** In Tennessee, if CLEC provides its own operator services and directory services, the discount shall be 21.56%. CLEC must provide written notification to BellSouth within 30 days prior to providing its own operator services and directory services to qualify for the higher discount rate of 21.56%. *** Unless noted in this column, the discount for Business will be the applicable discount rate for CSAs. . 1 Grandfathered Services (Note 1) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 5 Lifeline/Link Up Services Yes Yes Yes Yes Yes Yes Note 3 Note 3 Yes Yes 6 911/E911 Services Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 7 N11 Services Yes Yes Yes Yes Yes Yes No No No No 8 AdWatchSM Svc (See Note 6) Yes No Yes No Yes No Yes No Yes No 10 Mobile Services Yes No Yes No Yes No Yes No Yes No 11 Federal Subscriber Line Charges Yes No Yes No Yes No Yes No Yes No 12 Non-Recurring Charges Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 13 End User Line Charge– Number Portability Yes No Yes No Yes No Yes No Yes No 1 Grandfathered Services (Note 1) Yes Yes Yes Yes Yes Yes Yes Yes 5 Lifeline/Link Up Services Yes Yes Yes Yes Yes Yes Yes Note 3

APPLICABLE DISCOUNTS. The Telecommunications Services available for purchase by McLeodUSA OnePoint for the purposes of resale to McLeodUSA OnePoint End Users shall be available at the following discount off of the retail rate. * When a CLEC provides Resale service in a cross boundary area (areas that are part of the local serving area of another state’s exchange) the rates, regulations and discounts for the tariffing state will apply. Billing will be from the serving state. ** In Tennessee, if CLEC provides its own operator services and directory services, the discount shall be 21.56%. CLEC must provide written notification to BellSouth within 30 days prior to providing its own operator services and directory services to qualify for the higher discount rate of 21.56%. *** Unless noted in this column, the discount for Business will be the applicable discount rate for CSAs. . 1 Grandfathered Services (Note 1) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 5 Lifeline/Link Up Services Yes Yes Yes Yes Yes Yes Note 3 Note 3 Yes Yes 6 911/E911 Services Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 7 N11 Services Yes Yes Yes Yes Yes Yes No No No No 8 AdWatchSM Svc (See Note 6) Yes No Yes No Yes No Yes No Yes No 10 Mobile Services Yes No Yes No Yes No Yes No Yes No 11 Federal Subscriber Line Charges Yes No Yes No Yes No Yes No Yes No 12 Non-Recurring Charges Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 13 End User Line Charge– Number Portability Yes No Yes No Yes No Yes No Yes No 1 Grandfathered Services (Note 1) Yes Yes Yes Yes Yes Yes Yes Yes 5 Lifeline/Link Up Services Yes Yes Yes Yes Yes Yes Yes Note 33 8 AdWatchSM Svc (See Note 6) Yes No Yes No Yes No Yes No 10 Mobile Services Yes No Yes No Yes No Yes No 11 Federal Subscriber Line Charges Yes No Yes No Yes No Yes No 12 Non-Recurring Charges Yes Yes Yes Yes Yes Yes Yes No 13 End User Line Charge– Number Portability Yes No Yes No Yes No Yes No 1 Grandfathered services can be resold only to existing subscribers of the grandfathered service.

APPLICABLE DISCOUNTS. The Telecommunications Services available for purchase by McLeodUSA Teligent for the purposes of resale to McLeodUSA Teligent End Users shall be available at the following discount off of the retail rate. * When a CLEC provides Resale service in a cross boundary area (areas that are part of the local serving area of another state’s exchange) the rates, regulations and discounts for the tariffing state will apply. Billing will be from the serving state. ** In Tennessee, if CLEC provides its own operator services and directory services, the discount shall be 21.56%. CLEC must provide written notification to BellSouth within 30 days prior to providing its own operator services and directory services to qualify for the higher discount rate of 21.56%. *** Unless noted in this column, the discount for Business will be the applicable discount rate for CSAs. . 1 Grandfathered Services (Note 1) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 5 Lifeline/Link Up Services Yes Yes Yes Yes Yes Yes Note 3 Note 3 Yes Yes 6 911/E911 Services Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 7 N11 Services Yes Yes Yes Yes Yes Yes No No No No 8 AdWatchSM Svc (See Note 6) Yes No Yes No Yes No Yes No Yes No 10 Mobile Services Yes No Yes No Yes No Yes No Yes No 11 Federal Subscriber Line Charges Yes No Yes No Yes No Yes No Yes No 12 Non-Recurring Charges Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 13 End User Line ChargeCharge – Number Portability Yes No Yes No Yes No Yes No Yes No 1 Grandfathered Services (Note 1) Yes Yes Yes Yes Yes Yes Yes Yes 5 Lifeline/Link Up Services Yes Yes Yes Yes Yes Yes Yes Note 33 8 AdWatchSM Svc (See Note 6) Yes No Yes No Yes No Yes No 10 Mobile Services Yes No Yes No Yes No Yes No 11 Federal Subscriber Line Charges Yes No Yes No Yes No Yes No 12 Non-Recurring Charges Yes Yes Yes Yes Yes Yes Yes No 13 End User Line Charge – Number Portability Yes No Yes No Yes No Yes No 1 Grandfathered services can be resold only to existing subscribers of the grandfathered service.

APPLICABLE DISCOUNTS. The Telecommunications Services available for purchase by McLeodUSA OnePoint for the purposes of resale to McLeodUSA OnePoint End Users shall be available at the following discount off of the retail rate. * When a CLEC provides Resale service in a cross boundary area (areas that are part of the local serving area of another state’s exchange) the rates, regulations and discounts for the tariffing state will apply. Billing will be from the serving state. ** In Tennessee, if CLEC provides its own operator services and directory services, the discount shall be 21.56%. CLEC must provide written notification to BellSouth within 30 days prior to providing its own operator services and directory services to qualify for the higher discount rate of 21.56%. *** Unless noted in this column, the discount for Business will be the applicable discount rate for CSAs. . 1 Grandfathered Services (Note 1) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 5 Lifeline/Link Up Services Yes Yes Yes Yes Yes Yes Note 3 Note 3 Yes Yes 6 911/E911 Services Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 7 N11 Services Yes Yes Yes Yes Yes Yes No No No No 8 AdWatchSM Svc (See Note 6) Yes No Yes No Yes No Yes No Yes No 10 Mobile Services Yes No Yes No Yes No Yes No Yes No 11 Federal Subscriber Line Charges Yes No Yes No Yes No Yes No Yes No 12 Non-Recurring Charges Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 13 End User Line ChargeCharge – Number Portability Yes No Yes No Yes No Yes No Yes No 1 Grandfathered Services (Note 1) Yes Yes Yes Yes Yes Yes Yes Yes 5 Lifeline/Link Up Services Yes Yes Yes Yes Yes Yes Yes Note 3

APPLICABLE DISCOUNTS. The Telecommunications Services available for purchase by McLeodUSA Verizon Avenue for the purposes of resale to McLeodUSA Verizon Avenue End Users shall be available at the following discount off of the retail rate. * When a CLEC provides Resale service in a cross boundary area (areas that are part of the local serving area of another state’s exchange) the rates, regulations and discounts for the tariffing state will apply. Billing will be from the serving state. ** In Tennessee, if CLEC provides its own operator services and directory services, the discount shall be 21.56%. CLEC must provide written notification to BellSouth within 30 days prior to providing its own operator services and directory services to qualify for the higher discount rate of 21.56%. *** Unless noted in this column, the discount for Business will be the applicable discount rate for CSAs. . 1 Grandfathered Services (Note 1) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 5 Lifeline/Link Up Services Yes Yes Yes Yes Yes Yes Note 3 Note 3 Yes Yes 6 911/E911 Services Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 7 N11 Services Yes Yes Yes Yes Yes Yes No No No No 8 AdWatchSM Svc (See Note 6) Yes No Yes No Yes No Yes No Yes No 10 Mobile Services Yes No Yes No Yes No Yes No Yes No 11 Federal Subscriber Line Charges Yes No Yes No Yes No Yes No Yes No 12 Non-Recurring Charges Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 13 End User Line ChargeCharge – Number Portability Yes No Yes No Yes No Yes No Yes No 1 Grandfathered Services (Note 1) Yes Yes Yes Yes Yes Yes Yes Yes 5 Lifeline/Link Up Services Yes Yes Yes Yes Yes Yes Yes Note 3

APPLICABLE DISCOUNTS. The Telecommunications Services available for purchase by McLeodUSA PaeTec for the purposes of resale to McLeodUSA PaeTec End Users shall be available at the following discount off of the retail rate. * When a CLEC provides Resale service in a cross boundary area (areas that are part of the local serving area of another state’s exchange) the rates, regulations and discounts for the tariffing state will apply. Billing will be from the serving state. ** In Tennessee, if CLEC provides its own operator services and directory services, the discount shall be 21.56%. CLEC must provide written notification to BellSouth within 30 days prior to providing its own operator services and directory services to qualify for the higher discount rate of 21.56%. *** Unless noted in this column, the discount for Business will be the applicable discount rate for CSAs. . 1 Grandfathered Services (Note 1) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 5 Lifeline/Link Up Services Yes Yes Yes Yes Yes Yes Note 3 Note 3 Yes Yes 6 911/E911 Services Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 7 N11 Services Yes Yes Yes Yes Yes Yes No No No No 8 AdWatchSM Svc (See Note 6) Yes No Yes No Yes No Yes No Yes No 10 Mobile Services Yes No Yes No Yes No Yes No Yes No 11 Federal Subscriber Line Charges Yes No Yes No Yes No Yes No Yes No 12 Non-Recurring Charges Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes 13 End User Line ChargeCharge – Number Portability Yes No Yes No Yes No Yes No Yes No 1 Grandfathered Services (Note 1) Yes Yes Yes Yes Yes Yes Yes Yes 5 Lifeline/Link Up Services Yes Yes Yes Yes Yes Yes Yes Note 3