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story category Qwest Pondering Sale Of Long-Haul Network
Would help pay down company's $14 billion in debt
(old news - 08:49AM Thursday Apr 02 2009)
tags: business · alternatives · telco · Qwest.net
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."

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Forums » Qwest Pondering Sale Of Long-Haul Network
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Post a:
patcat88

join:2002-04-05
Jamaica, NY

corporate suicide

Corporate suicide, or its planning to be acquired by a private equity group or Fairpoint/ATT type company.

Or is Qwests business model munching off USF forever?
vinnie97

join:2003-12-05
Mesquite, TX

Re: corporate suicide

Please, no AT&T. They ballooned enough with the purchase of BellSouth.

TKJunkMail
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
Dumping the lucrative long lines business opens up the way for their last mile business to be taken over by Verizon or AT&T. Bye Bye Qwest.

MSauk
MSauk
Premium
join:2002-01-17
Sandy, UT

Re: corporate suicide

That is what happens when your business model is 10 years in the past! instead of the future.
--
MatthewSauk.com
jtel

join:2005-06-28
Bristol, RI

Staving Off Bankruptcy

I doubt either Verizon or AT&T would be foolish enough to purchase what's left of Qwest/US West.

The Qwest ld network though is a gem for a company with the right synergies and nationwide presence (what Qwest now lacks).

I would think T-Mobile is someone that could save money with this chip.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
·Time Warner Cable
·buckeye cable

Re: Staving Off Bankruptcy

I don't see AT$T or VZ being able to take over the company. Especially ATT. They already have how many states? That would just put MaBell back together again for them.

I could see them selling off markets to Embarq/CentTel or Windstream. Both have great luck with small rural markets.
openbox9

join:2004-01-26
Alexandria, VA
·AT&T Southeast

Re: Staving Off Bankruptcy

said by hottboiinnc See Profile :

I don't see AT$T or VZ being able to take over the company. Especially ATT. They already have how many states? That would just put MaBell back together again for them.
Honestly, given the current environment, what's wrong with that? It's not like T and Q are competitors. The consumers won't be harmed, and in fact may be helped.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
·Time Warner Cable
·buckeye cable

Re: Staving Off Bankruptcy

it means they control more of the network in whole. And yes they are armed. AT$T owns a GREAT share of the backbone and controls pricing for what others pay for Internet.

Sounds like you want MaBell back. And Current environment? HA! others can take Qwest without giving it to AT$T or VZ.

But then again you must think that AT$T will give the customers of Qwest something they don't already have? They already have DSL they don't want AT$T's over priced services.
openbox9

join:2004-01-26
Alexandria, VA
·AT&T Southeast

Re: Staving Off Bankruptcy

Other backbone providers exist, so I don't see the harm. I don't necessarily have a problem with ILEC consolidation if done correctly, especially since the situation is different now than it was when AT&T was divested. Personally, I don't think AT&T is interested in buying Qwest, so I think you're okay.

While we can debate AT&T's choice in VDSL, at least they have a vision and our deploying infrastructure? What's Qwest's vision? So yes, I think AT&T can give customers something that they don't already have with Qwest.

GenerationXYZ




Unless T-Mobile has changed directive, I doubt they'll want to dabble into old US wireline.

It is true that their parent company (DT) has a large landline presence in Germany, but that's a continent away.

The only way I could see a pure play wireless co like T-Mobile benefiting long term from such a sale would be for local capacity to fuel 3 or 4G endeavors. Other than that, I don't see any corralation.
jtel

join:2005-06-28
Bristol, RI

Re: Staving Off Bankruptcy

Its a high capacity national fiber network. They have a national cell network with long distance traffic and they sell T-Mo @Home which is VOIP so my thinking was cutting costs. I'm not sure if Qwest ever got into any metro fiber but that would come into play for backhaul if so. AT&T, Verizon and Sprint all have their own nationwide fiber networks.
viperlmw
Premium
join:2005-01-25
·Qwest.net

I guess I just don't understand

The whole classic Qwest/USWest 'merger' has been a mess, and it's finally getting cleaned up, company is profitable for the foreseeable future, company keeps saying the debt is ok, easily manageable, already sold off everything else (wireless, yellow pages, buildings, etc.). And only going to get a couple billion for classic Qwest? WTF is going on in Denver? My head is about to explode!
Metatron2008

join:2008-09-02
Stockbridge, GA

I thought Craig Moffett said Qwest was in the best position?

Of all the carriers? And Verizon and At&t were not going to last thru the recession?

Someone should seriously check the guy for fraud.

notnowhomer

@cox.net

Re: I thought Craig Moffett said Qwest was in the best position?

Qwest put out a lot of false statements during my tenure at the company. It is a fairly dysfunctional culture that was slow and disorganized. At every turn there was always something that would get in the way of putting a business deal together. It is such a small company compared to the larger rivals yet lacked the nimbleness that a smaller company inherently should have. One of our favorite falsehoods was the company's byline "get nimble with Qwest" which was so far from the truth. It was culture of slow and "no" and when you are in a sales environment that will not bode well in the market. There are some good people at Qwest but with management who are leftovers from the old Bell regime: egotistical, inept and inconsistent - its hard to do business.
Forums » Qwest Pondering Sale Of Long-Haul Network


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