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Qwest: Who Needs FiOS or U-Verse?
CEO says DirecTV, YouTube is enough...
by Karl Bode 04:33PM Thursday Aug 02 2007
Qwest has released their quarterly earnings, and the telco reports that it doubled its second-quarter net income while cutting operating expenses by 4%. Net income rose to $246 million, or 13 cents a share, while revenue slipped to $3.46 billion from $3.47 a year earlier. The company added 100k DSL customers, with landline losses at 7%.

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As we've mentioned, Qwest is the only major telco that hasn't dedicated itself to offering video services, either over fiber or VDSL. The company seems eager to let DirecTV and Microsoft Live videos pass as their TV platform.

CEO Richard Notebaert had this to say on the conference call with investors and analysts:
quote:
"Why in the world would you go do that and incur all that expense when you've got YouTube and the direction the world is heading and can still do the broadcast model with more HD than anywhere else with DirecTV. I can't find any logic for us doing it."
Notebaert is on his way out, and told investors that his successor (to be announced soon) would share the same philosophy.

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Jodokast96
Stupid people really piss me off.
Premium
join:2005-11-23
Erial, NJ
kudos:2

Forget VOIP...

These guys will be the next to vanish.
amungus
Premium
join:2004-11-26
America

1 recommendation

phone company

Wow, a phone company selling ...phone service... and data service... what a concept.

Cheers to them for doing what they do and not trying to funnel tv through a straw.

Jodokast96
Stupid people really piss me off.
Premium
join:2005-11-23
Erial, NJ
kudos:2

Re: phone company

That's fine, but as a business, where will it leave them?

klamer

join:2000-06-09
Fort Worth, TX
said by amungus:

Cheers to them for doing what they do and not trying to funnel tv through a straw.
Just don't get this whole fiber concept do you.
--
But where does the meat go?

Omega
Displaced Ohioan
Premium
join:2002-07-30
Somerset, NJ
said by amungus:

Wow, a phone company selling ...phone service... and data service... what a concept.

Cheers to them for doing what they do and not trying to funnel tv through a straw.
If fiber is a straw then cable must be a coffee stirrer.

jgkolt
Premium
join:2004-02-21
Avon, OH

Re: phone company

Actually Omega I believe he is referring to U-verse which thinks they will push 2 HD channels by ip using a straw. ATT also thinks that we will never need more than 6mbps internet speed. From the beta tests in this area with the Microsoft based software most people wanted to go back to normal cable.
--
www.LakeSemaJ.com
Help me get free trades.3 free if you sign up, $7 after. PM Me
amungus
Premium
join:2004-11-26
America
Reviews:
·Cox HSI
·KCH Cable

Re: phone company

yeah, that's what I was meaning just didn't feel like going through the trouble of explaining it.

Fiber's awesome. Wish more of it were more places!

...I just think TV from the phone company is like buying a car from a grocery store. Now, buying phone from cable is more like getting a free lunch from a car salesman... I still wouldn't really want phone from my cable co, even though it is a nifty idea - just like tv from a telco. ...Just making comparison's here, not trying to pick on either one so much as point out my opinions by means of analogy

supergirl

join:2007-03-20
Pensacola, FL
said by amungus:

Wow, a phone company selling ...phone service... and data service... what a concept.

Cheers to them for doing what they do and not trying to funnel tv through a straw.
Qwest is smart letting ATT & VZ explore their UVerse & FIOS before moving ahead. It also doesn't hurt its a moral rural provider. If they are not having line losses and such, sticking with what they know best is smart. They are also still getting over Nacchio's crooked dealings at the company too.
--
Saving the world keeps me busy. However, I find Earth very primitive from my home planet of Krypton.
-Supergirl
ShadezeRO

join:2006-04-24
Fort Lauderdale, FL

Hang in there kitty!

Quest has a good amount of money coming in.

If they can hold on for a few years, I'm sure they'll be smart enough to adopt FTTH.

They're the only company I know of that offers a 7Mbit DSL connection.

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:7

Re: Hang in there kitty!

said by ShadezeRO:

They're the only company I know of that offers a 7Mbit DSL connection.
And if they keep up avoiding any type of fiber, they will be the only ISP still offering 7mbit DSL. Everyone else will have upgraded well beyond that. In some FiOS markets, 10mbits is the SLOWEST speed that Verizon offers.

And Verizon Online has long offered a 7.1mbit package albeit through their business division.
--
Go Colts

nfixit2004
Premium
join:2004-01-06
Brooklyn, NY

who needs FIOS

I do! and soon
Nuts65

join:2006-04-27
Forest, OH

Re: who needs FIOS

Same here

TScheisskopf
World News Trust

join:2005-02-13
Belvidere, NJ

Apparently...

This genius studied at the feet of the Lucent CEO who drove the country into the ground when he decided really fast internet speeds wouldn't be going anywhere and let Redback eat Lucent's lunch.

Ahh, but he makes the big bucks and I eat beans.

Subaru
1-3-2-4
Premium
join:2001-05-31
Greenwich, CT
kudos:1

Best part of story...

"Why in the world would you go do that and incur all that expense when you've got YouTube and the direction the world is heading and can still do the broadcast model with more HD than anywhere else with DirecTV. I can't find any logic for us doing it."

Thats the sound of a company that does not have the cash to spend like Verizon over upgrading your services.
MeKuN

join:2004-07-21
Eugene, OR

Qwest WTF?

They keep taking more and more from employee's and giving less in return. Way to drive revenue.Can they pinch the employee's any harder?
gworkman7

join:2005-10-18
Laveen, AZ
Reviews:
·PHONE POWER

I agree with CEO

AT&T's efforts at video have been costly and has netted around 200k subs. If I were to sub, I would be extremely unhappy with the lack of HD through the house.

Qwest has been a good experience for me. Lightening struck in my neighborhood and I couldn't sync above 1MBPS. Called on Sunday afternoon, tech came Monday afternoon. After determining it was a problem with the DSL modem, he pulled one from his truck and installed it for free. My phone service works, at a decent price. With bundles, I pay $34.95 for 7 down / 896 up. Unlimted Long Distance for $15.

I would rather they spend the money on the data side and not blow away cash on a service that very few will take.
radougherty

join:1999-07-23
Austin, TX
Reviews:
·Time Warner Cable

Re: I agree with CEO

Hate to say it but I tend to agree with him, if all he's worried about is being able to provide video services to he can say Qwest has a triple play package. Besides the cost of building out the infrastruture they'd also have to put into place all the backend services to get the content on the fiber/wire, another big expense. IMHO he should just contrate on building up the network to handle higher data speeds, especially on the upload side (which everyone except FIOS seems to ignore).
MeKuN

join:2004-07-21
Eugene, OR

To late.

They are already starting to roll out video in tier 1 areas. They have to compete with cables package deals.Its sink or swim time for Qwest.

plk
Premium
join:2002-04-20
united state

Qwest should buy DTV

I think Qwest should buy DirectTV.

SolarPup
Hardware God
Premium
join:2002-03-07
Greeley, CO

Re: Qwest should buy DTV

Then it would be.. QwesTV

Jim Kirk
Premium
join:2005-12-09

Re: Qwest should buy DTV

No, it would be QworsTV

SolarPup
Hardware God
Premium
join:2002-03-07
Greeley, CO

Re: Qwest should buy DTV

That too!
wstwrdho

join:2007-03-15
Riverton, UT

Re: Qwest should buy DTV

LOL, knowing John Malone it'll be the other way around. Something like DirectQwesTCILibertyrainbowtv. Old John will have to get a bigger boat just to fit the name on the bow (or is it stern).

Fox McCloud
Crazy like a fox.

join:2006-07-23

oh boy...

if he keeps this attitude up, then it'll put a huge hole in their ship; one that AT&T will be more than happy to patch....

MalibuMaxx
Premium
join:2007-02-06
Chesterton, IN

F.I.O.S.

Fast
Internet
Objective
Started

But thats all it is, is started. Just run the dang cables already to everyone... unfortunatly I know its not that simple but I wish it was...

batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ

Not enough people too many miles.

It would be difficult to make a profit deploying broadband in Qwest's area. Maybe Utopia will come to the hog pens and chicken coops for the good of the great unwashed.

alanhdsl
Premium
join:1999-10-09
Phoenix, AZ

Limited TV

They do offer TV over VDSL in the Phoenix and Denver areas, but this is a carryover from US West. They've expanded the geographical areas where it's offered in those cities, but have not moved into other areas. They recently added HDTV, but in filings with the FCC (for waivers of CableCard compatibility) they've indicated they're moving off this platform.

Mrq5
The Fab Four

join:1999-08-21
Warren, MI

Telcos Have no Choice!

"Why in the world would you go do that and incur all that expense when you've got YouTube and the direction the world is heading and can still do the broadcast model with more HD than anywhere else with DirecTV. I can't find any logic for us doing it."

Because the Cable Carriers are chewing away at the traditional Telco customers with their VoIP offerings. Verizon & AT&T and all telcos will need to offer more services to compete with Cable Carriers and Cell Phone carriers. They have been loosing land-lines left & right. 20 yrs ago almost everyone had a landline. This is no longer the case with cellphones and VoIP.

Brendan
Warr Guitar is here

join:2000-07-14
Littleton, CO

Re: Telcos Have no Choice!

To the guy who mentioned Qwest's VDSL rollout: It hasn't expanded since at least 2001, maybe even farther back. It is only offered in one neighborhood of the Denver area (more thorougly built out in Phoenix and Omaha).

As for VoIP, I am using Comcast for my TV/Internet/Phone and it works great. Best call clarity I have ever experienced from a "landline". Getting Phone, digital cable with premium channels and 6/384 Internet access, for $150/month. Not the best deal in the world, but I can't complain - the service has been solid since day 1.
TheWade7

join:2007-02-03
South Saint Paul, MN

4% of a downward spiral!

The two ways Qwest was able to cut it's operating expenses is the answer to why it is hard to get good customer service. The first is Qwest has a brilliant strategy in place for is call center sales division - which may or may not also be the reason for the abysmal J.D. Power and Associates employee results - It is called turn over or more accurately put "Rotating stock". The sales office objectives are so grossly over inflated that less than 10% of fully compensated employee's actually make monthly goal - with occasional adjustments in policy to maintain at least a 90% failure rate. The genius is in the process never having to payroll fully compensated employees in that newly hired representatives, which also represent more than 70% of operating staff - generate revenue but are not compensated, which is up to a 5 month process, with ever increasing goals that also ensure failure levels are maintained. The second is that Qwest is also replacing is customer service "care" employee's at wages half of what was previously paid and are held to sales objectives.

free market

@qwest.net

DTV and Qwest relationship good

I have seen FIOS, U-verse, etc, etc. I firmly believe that in the long term VOIP services from cable will diminish with the fact that there are many many customers with cell phones. I have Verizon Wireless for the dependability, Qwest DSL for the price (I don't need to spend more time on the internet than I already do) and I have Directv for various reasons (one I am a rabid sports fanactic and I cannot get sports packages from FIOS, which is not available where I live and I will not pay Comcast on principal).

Qwest has done a great job of marketing DIRECTV with their services. They let an already established video provider to provider (Directv is about to have more HD than all their competitors into the 30 to 50 HD channel range) so it works for them. Verizon has been successful but they spending a lot of capitol outlay to get the fiber run where they want it. Again I think it is good for competition and there are many hybrid relationships that both Directv and Dish Network have. Personally I am going to get Clearwire once it goes Wi-max and then I will have the services I need. I will dump Qwest and have a wireless internet and Directv bundle from Clearwire. Again it will be interesting to see where things go but the telecommunications industry is always changing.