| reply to iansltx
Re: When will Qwest DIE? said by iansltx:it's telling that the company really doesn't want to invest to keep abreast of the current technology. I think you have to draw a distinction between unwilling and unable. Qwest (nee USWest) was always the weak sister of the regional operating companies. The population density was far lower in their territory than any of the other regionals. That makes their return on capital investment far lower.
Combine that with some critical mismanagement (financial and wireless), and Qwest can't raise the money to do anything. They'd be better off sold to someone better managed, but who would buy them? You get a bunch of expensive regulated wire with a declining user base to maintain and you inherit the low density that makes upgrades expensive. |
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iansltx
join:2007-02-19
Golden, CO
kudos:2 | CenturyLink seems to be pretty well off, and they're more rural on average than Qwest. The only big market I know of is Las Vegas (legacy Sprint/Embarq). CL is doing bonded ADSL2+ and FTTH in some places... |
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| said by iansltx:CenturyLink seems to be pretty well off, and they're more rural on average than Qwest. The only big market I know of is Las Vegas (legacy Sprint/Embarq). CL is doing bonded ADSL2+ and FTTH in some places... There's a scale factor involved, right? I haven't looked up the numbers, but I suspect that CenturyTel is a fraction the size of Qwest in lines or sq miles served. I have relatives in North Dakota, 60 miles from nowhere that will be getting fiber from their local coop this year as well. I'll bet that if you compared the number of VDSL homes served by Qwest to CenturyTel, they might be be pretty close.
The problem is that Qwest is limited to financing any upgrades from internal cashflow (no one will lend them anything on commercial terms because of the poor business case). |
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 davoice
join:2000-08-12
Saxapahaw, NC
 ·Comporium
| Oh there are people who will loan them money on commercial terms... just at very high rates because Qwest is already so far in debt from previous mergers, acquisitions, poor performance and short-sighted cash management that there is a high probability the loans/financing would never be repaid in full. Sucks to be a telecom company that is highly leveraged and late paying your bills and vendors!
}Davoice |
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| said by davoice:Sucks to be a telecom company that is highly leveraged and late paying your bills and vendors! Sucks to be a CUSTOMER of a telecom company that is highly leveraged and late paying their bills and vendors. I wish Comcast would come to my neighborhood to provide choice and spur some competition. |
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