While Qwest has skimped a bit when it has come to upgrading their network, they've been more than generous when it comes to executive compensation. According to the Associated Press, Qwest will be cutting back on extra $50-$70k yearly "flexible benefit payments" paid to the company's CEO and other executives which are used for "such things as financial counseling, physical exams and club memberships." Mueller received $11.4 million in 2008, $6 million less than in 2007. Also under fire by investors is the way the telcos pay for the homes of executives who move, notes Reuters. In AT&T CEO Randall Stephenson's case, that equated to an extra $1.7 million bonus in addition to the $11.6 million he earned last year in salary, stocks and other compensation.

Update: AT&T offers us a little more context on how they help executives with moves:

Unlike AT&T and Sprint, Qwest doesn't have a wireless division, and so they miss out on cash cows like overly expensive text message revenue, which in turn impacts their ability to upgrade their network and offer competitive bundles. They've tried to counter this by signing partnerships with wireless partners, with mixed results. For a while, Qwest was offering re-branded Sprint wireless phone and EVDO service as "Qwest Wireless" -- albeit with a $5 premium any user could avoid by simply signing up with Sprint directly. Qwest scuttled that partnership in May of 2008, and decided to simply offer Verizon Wireless services. They've now issued a press release reminding customers the original Sprint-based service will be shuttered in sixty days.

Wireless carriers have recently started subsidizing netbooks in much the same way they've subsidized smart phones -- assuming users are willing to sign long term contracts. Terrestrial operators are now getting into the act as well, with Verizon recently announcing a promotion that gives users a free Compaq Mini Netbook if they sign up for DSL. Qwest has now jumped on that bandwagon as well, their website now advertising that users who sign up for 7Mbps "fiber optic Internet" (Qwest code for DSL) get a Dell Mini Netbook for the subsidized price of $199. To get the discount, you of course need to sign a two year contract.

Qwest has unveiled a new $80 a month bundle package that includes 7Mbps DSL, DirecTV's "Choice Xtra" TV package, and unlimited and nationwide calling. As Bernie Arnason at Telecompetitor notes, there's a few caveats. Customers must sign a two-year contract, some of the bundle discount involved rebates, HD video content is $10 more per month, there's obviously a lease involved with the DirecTV gear, and you need to pay a $19.95 handling fee. Nudging the price below the fairly standard industry $99 fee is a good sign that Qwest, whose ability to upgrade their network is limited, is seeing increased competition from cable operators. One problem? Many Qwest customers still can't get faster than 1.5Mbps.

Qwest has issued their second quarter earnings, which indicate the baby bell reported a net income of $212 million, compared with $180 million one year ago. Revenue sunk slightly more than expected by 8.6%, down to $3.09 billion.

Given Qwest lacks the resources to deploy fiber to the home, and their recent ADSL2+ service only topped out at 896kbps upstream, they've been trying to argue that speed didn't matter and it's the broadband "experience" that counts. Last month, Qwest COO Tom Richards insisted that customers really didn't want faster speeds, and Qwest didn't want to get caught up in the "speed game." "What's important is the actual experience, and if they can discern the difference," proclaimed the COO.

Back in June we were the very first to report that Qwest was getting close to launching new VDSL2 service in select markets that would allow Qwest to offer faster broadband speeds, something that was important for a carrier whose ADSL2+ service offered top upstream speeds of just 896kbps. This morning Qwest finally confirmed the news, announcing via press release that they're offering new VDSL2 service to select markets that top out at 40Mbps downstream and 20Mbps upstream.

Last month, Qwest COO Tom Richards insisted that customers really didn't want faster speeds. That seems to be a new talking point for the company, given last week, in response to a question about the threat faster DOCSIS 3.0 speeds pose Qwest, company CFO Joe Euteneuer insisted "speed is almost a non-issue for the consumer." That's wishful thinking from Qwest, given their current next-generation service currently tops out at 896kbps upstream, and is only available to a fraction of their customer base. As we exclusively reported last week Qwest is preparing a jump to faster VDSL2 technology, but in a very limited capacity. The next twelve to twenty-four months are key for Qwest as DOCSIS 3.0 takes aim at their underpowered DSL footprint.

The past few weeks have seen a flood of rumors that Qwest is about to migrate from ADSL2+ to VDSL2, which should allow the carrier to offer faster speeds to select customers with shorter loop lengths. While Qwest's current fastest ADSL2+ speed tops out at 20Mbps/896kbps, the new VDSL2 services will top out at around 40Mbps downstream and 20Mbps upstream.

Since Qwest is hemorrhaging landline customers at an amazing pace (259,000 last quarter alone), they're eager to rebrand themselves as a next-generation broadband company. The problem is that Qwest is still nursing last-gen copper technology, their "next-gen" ADSL2+ upgrades (when they're available to consumers) offering downstream speeds up to 20Mbps, but upstream speeds limited to a paltry 896kbps.

In April, rumors surfaced that Qwest was trying to sell off their long-haul fiber network, which connects long distance calls to other carriers. Qwest was hoping to net about $2-3 billion from the deal -- and use it to pay down the company's $14 billion in debt.

In April, rumors surfaced that Qwest was trying to sell off their long-haul fiber network, which connects long distance calls to other carriers. Qwest was apparently hoping to net about $2-3 billion from the deal -- and use it to pay down the company's $14 billion in debt.

Since Qwest is hemorrhaging landline customers at an amazing pace (they lost 259,000 last quarter alone), they're eager to rebrand themselves as a next-generation broadband company via a spiffy new ad campaign. The problem is Qwest is still nursing last-gen copper technology, their "next-gen" ADSL2+ upgrades (when they're available to consumers) offer downstream speeds up to 20Mbps, but upstream speeds limited to a paltry 896kbps.

Qwest has struck an agreement with AT&T that allows Qwest broadband customers to access 17,000 of AT&T's 20,000-strong hotspot network -- for free. According to the Qwest press release, Qwest broadband customers can begin accessing AT&T Wi-Fi starting today, and this Qwest website highlights how and where you can get service. AT&T of course offers their own broadband and mobile customers access to these hotspots, and Verizon is also rumored to be working on a deal to b ring free Wi-Fi to their own broadband subscribers.

According to the Wall Street Journal, Qwest is launching a new public relations campaign aimed at rebranding the company as a more broadband-centric provider. The company, which lost 259,000 residential phone customers last quarter, wants to lessen the emphasis on Qwest the phone company -- through ads highlighting the company's online backup and other broadband-centric services.

Except outside of ad land, Qwest isn't particularly cutting edge. Qwest's "next-gen" ADSL2+ upgrades (when they're available to consumers) offer downstream speeds up to 20Mbps, but upstream speeds limited to a paltry 896kbps. With no wireless phone division to cross-subsidize revenues, next-gen upgrades are limited -- and Qwest is rumored to be considering a sale of their national long distance fiber network.

Back in 2007, our resident Qwest users noticed that the telco had changed its "excessive use policy," or "EUP". Like many operators, Qwest will boot any user who consistently consumes more than their "fair share" of bandwidth for a residential connection.

Qwest issued their first quarter earnings this morning, which indicate the carrier added 42,000 new broadband customers on the quarter, but lost 259,000 residential phone customers. Still, Qwest net income was $206 million, up from $150 million a year ago -- in large part due to employee cuts over the past year. Total revenues were $3.2 billion, down 7% from a year ago. Qwest tells the Associated Press that they're still testing technology that will allow them to offer speeds faster than their 20Mbps FTTN/ADSL2+ "Quantum" service, though reports of Qwest testing 35Mbps+ line bonding technology are now several years old, likely plagued by the same kind of hardware vendor issues that have impeded AT&T's interest in bonded DSL.

While Comcast has been getting the most attention for the move, most major broadband carriers are now reaching out to customers via micro-blogging service Twitter. It offers massive companies to put a more personal face on their product, while giving customers a way to break through customer support red tape. Qwest is the latest, the company announcing a new plan called "Talk To Qwest" on Twitter. A team of Qwest representatives in Boise and Idaho Falls, Idaho, as well as Sioux Falls, S.D., utilize the TalkToQwest account.

According to reports this morning in the Wall Street Journal, Qwest is considering sale of their long-haul network, which connects long distance calls to other carriers. The deal, if completed, would net Qwest about $2-3 billion -- used to pay down Qwest's $14 billion in debt. Likely bidders include companies like Time Warner Telecom and Level3 -- though the obvious and most likely suitors will be AT&T and Verizon. It's a bit of a desperation move for a carrier that's bleeding landline customers but lacks a wireless unit to prop up revenues. For now, Qwest's only comment is "We're not commenting on rumors and speculation."

Nearly seven years after he resigned under a cloud of accusations, former Qwest CEO Joe Nacchio will soon be headed to prison to begin serving his six year sentence for insider trading and cooking the books. As of March 23, Nacchio's new home will be the minimum security Schuylkill Federal Correctional Institution in Pennsylvania. The former CEO was found guilty a year ago in Denver, but has delayed the prison sentence through a series of appeals. Nacchio attorney Maureen Mahoney has repeatedly stated she's "optimistic" the U.S. Supreme Court will review the case