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Qwest Will Keep Long Haul Network
Couldn't get the more than $2 billion they were hoping for...
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. However, the efforts didn't go particularly well. Earlier this month, Cogent Communications CEO Dave Schaeffer pulled his company out of the running, saying the asking price was too steep. AT&T and Verizon only hinted at interest should the bidding result in a real steal. In an un-surprising move, Qwest this morning announcing that after "strategic review," they're keeping the network -- and the debt they were hoping to eliminate by selling it.
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pnh102
Reptiles Are Cuddly And Pretty
Premium Member
join:2002-05-02
Mount Airy, MD

pnh102

Premium Member

No Surprise

Long Distance phone service hasn't been a cash cow since most wireless, VoIP and even some landline providers have been including unlimited long distance at no additional cost to subscribers.

no_one
@qwest.net

no_one

Anon

Re: No Surprise

It is also backhaul for dsl and data. Larger businesses still use lots of data. Just because Qwest doesn't know how to compete doesn't mean the backhaul isn't needed.
If it had been sold it would have been the end .
iansltx
join:2007-02-19
Austin, TX

iansltx

Member

Re: No Surprise

Wouldn't necessarily have been "the end". Though they would have lost all their ISP customers (Charter is a big one) bandwidth in big cities is cheap enough now that they could have still worked thing out just fine. I'm sure they'd be keeping their regional networks.

If they had gotten $2B for the network, sure they would've had to have start paying for some stuff, but even if they had to pay $1M per month for bandwidth due to selling that network, it'd still take a few dozen years for them to be on the raw end of the deal.
cyclone_z
join:2006-06-19
Ames, IA

cyclone_z to pnh102

Member

to pnh102
said by pnh102:

Long Distance phone service hasn't been a cash cow since most wireless, VoIP and even some landline providers have been including unlimited long distance at no additional cost to subscribers.
VoIP, yes; wireless, not really. Most wireless operators just don't distinguish between local and long distance. If you have unlimited minutes, then yes, you have unlimited long distance, but if you have finite minutes, then you don't have unlimited long distance. Qwest does offer an unlimited calling package for local and long-distance. If they sold their long distance fiber network, I don't see how they could competitively offer such a service.

longstreet
join:2004-11-14
Plano, TX

longstreet

Member

.

Good, hopefully this dinosaur will bite the bullet - just like GM

Mose
@visi.com

Mose

Anon

They should hold out for more

Q has fiber into strategic cities that would provide enormous value to either T, Vz or another global carrier. I don't agree with many of Q's decisions, but this is one move that will pay off in the long term.

NormanS
I gave her time to steal my mind away
MVM
join:2001-02-14
San Jose, CA

NormanS

MVM

Re: They should hold out for more

Unless those strategic cities are not currently reached by AT&T Worldnet Services, or Verizon Business (in the same business as Qwest long haul fiber), it would just be duplication of their existing infrastructure.