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story category Qwest a 'Sitting Duck'
Still waiting and thinking about next-gen broadband
(old news - 01:30PM Tuesday Jun 19 2007)
tags: dsl · Video · competition · bandwidth · content
"We've made it clear that we're watching AT&T to see what the market acceptance is like," says Qwest's Dan Yost to Dow Jones, speaking about next-gen broadband and broad entry into the TV market. Qwest has been taking a "wait and see" approach when it comes to telcoTV and network upgrades, though they did recently issue an RFP exploring their options. One analyst in the piece calls Qwest "a sitting duck" until they decide on an upgrade path (and possibly after, if the plan isn't robust).

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Forums » Qwest a 'Sitting Duck'
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LiamJunket
Premium
join:2002-03-03
Ocean City, NJ
·Comcast

Advantages to waiting; but risks too

There are some definite advantages to waiting until the market is ready:
Costs of hardware are lower
Bugs have been identified and fixed
Best practices on implementation have been identified
Stockholder acceptance will be easier
etc.

But there are risks too:
Wait too long and your competitors(not other telcos(due to regional hegemony), but cable companies) may have taken many of your customers.
Getting access to vendor equipment(whose output may be locked up with contracts to other providers).
Costs of maintaining old equipment goes up.
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@qwest.net

Re: Advantages to waiting; but risks too

you have to invest to profit but we already know this...
flushls

join:2004-11-02
Joyce, WA

They have already lost the rural & commercial Markets

Here in W. WA they have only 20% of the market share outside of POTS which is a heavily subed money loser.
If it is like this everywhere their DOA.
dynodb
Premium,VIP
join:2004-04-21
Minneapolis, MN

Re: They have already lost the rural & commercial Markets

said by flushls See Profile :

Here in W. WA they have only 20% of the market share outside of POTS which is a heavily subed money loser.
If it is like this everywhere their DOA.
Uhh... dude- POTS is the bread and butter of any of the ILECs. "Money loser"? More like cash cow.

jinjimbob
Troy Mcclure

join:2001-11-13

Re: They have already lost the rural & commercial Markets

said by dynodb See Profile :

said by flushls See Profile :

Here in W. WA they have only 20% of the market share outside of POTS which is a heavily subed money loser.
If it is like this everywhere their DOA.
Uhh... dude- POTS is the bread and butter of any of the ILECs. "Money loser"? More like cash cow.
Yes, and Qwest gets a LOT of money from the USF funds in rural Washington.

hmmk

@comcast.net

hmmm

qwest should come out with a fiber service similar to fios or come out with vdsl in more areas. just my 2 cents
ShadezeRO

join:2006-04-24
Fort Lauderdale, FL

Didn't they...

Doesn't quest have a relatively new infrastructure? I figure they would want to wait a little bit so they can get some more cash flow going...

kapil
The Kapil

join:2000-04-26
Chicago, IL

To be fair...

Qwest does have some pretty sparsely populated western states in its territory that are going to be expensive to wire with little or no upside.

But that doesn't change the fact that qwest is still an ILEC, and that means it has no idea what the hell it's doing or where it's going on any given day.
dynodb
Premium,VIP
join:2004-04-21
Minneapolis, MN

Re: To be fair...

And you know this from your vast experience with Qwest in Illinois, which isn't in their territory?

Though they are taking a "wait and see" attitude with regards to video, upgrades- including those that could potentially support video- are going on right now at this very moment.
jester121

join:2003-08-09
Lake Zurich, IL
Rather, at least Qwest has the courage to admit that all the hell they're doing is sitting still, and thereby not going anywhere.

JamesPC

join:2005-10-12
Orange, CA
Yep, just thinking of the area they have to connect. This will be a much harder to wire than say some of the fully developed east coast.

ib50MbSoon
Formerly TwoKDialup
Premium
join:2002-06-07
Coloma, MI

1 edit

Don't do anything drastic...

'cuz this whole internet thing is just a fad that will go away any day now! Ten years from now we'll all be back on dialup.
--
Meet Bill and Karolyn at www.theslowskys.com

comcast_customer

@raf.com

"Wait and see"

"Business has only two functions - marketing and innovation." - Peter Drucker

"We've made it clear that we're watching AT&T to see what the market acceptance is like" - Qwest's Dan Yost

So, the customers are already ASKING, YouTube/Skype/BitTorrent is flooding the 'internet tubes' (as Congressman Stevens put it) but Qwest wants to play 'wait and see'...

What exactly is there to wait and see for? There's no going BACKWARDS or standing still. It's not an 'if' question, it's a 'when' question. Why not lead, instead of follow? Qwest isn't smalltime - they can handle this!
gworkman7

join:2005-10-18
Vail, AZ
·magicjack.com
·Qwest.net
·Broadvox Direct

Re: "Wait and see"

AT&T has shown that:

1) Demand for IPTV is not there right now
2) Cutting edge folks willing to go with AT&T quickly drop the service after realizing they can only get one HD stream at a time.

If a company is going to "invest" in a product, there needs to be a belief that there is a demand for the product. I know that, in my situation, I would not go with a Qwest provided service. I've used DirecTV for many years and I'm looking forward to their impending boom on HD.

Qwest will need to be satisfied with phone, dsl, wireless and a partnership with a satellite provider.
ricep5
Premium
join:2000-08-07
Jacksonville, FL
·AT&T CallVantage
·Comcast Formerly ..

Qwest has significant debt. They would have to merge with another entity to get that debt redone.

Verizon sold a lot of bonds to build FiOS and the short termers have been griping ever since. So I can't see Qwest taking on anything more.

Qwest would probably LOVE to build out advanced services but they chose to take on that debt load when they leveraged themselves to buy US West.

That means they must take an incremental approach to where the capital dollars are spent and watch how the market shakes out. There are few ways for Qwest to be able to fund a new service offering with the debt they carry; (w/o selling out)

- Sell a service region
- Eliminate other services
- Reduce costs farther than normal
- Raise prices
dmconwa

join:2007-04-19
Phoenix, AZ

Re: "Wait and see"

Honestly I would prefer to see Qwest focus on higher internet speeds and keeping the DirecTV partnership intact. They will never be able to put a product together as well built as DirecTV does currently, and with Sunday ticket and the boom in HD they should be able to swing a lot of customers their way in the next couple years if they can keep pace speed wise with cable companies.

A mix of FTTN and ADSL2+ is already out there. The FTTN can handle 50meg, and from what I've heard the ADSL2+ can handle about 25meg. I think they would be in good shape for a long period of time in their region if they focused the bandwidth to internet use and continued to work with DirecTV for their bundle. I don't think the cost would justify the means in their case to offer their own TV product.
nonymous

join:2003-09-08
Glendale, AZ

Qwest VDSL

In Phoenix and Denver Qwest does have a very competitive rollout of VDSL.
This was started by US West before the merger so the experience is there. This was not just started yesterday to just a select few in Phoenix metro. There are of course gaps in coverage but it is very broad and covers upscale new to older poorer neighborhoods.
Of course Qwest will watch what the other telcos do but it has in house hands on experience also.
The adsl2 is there. It may be mostly idle with a very small rollout but most newer equipment I believe is compatible.

fonzbear2000
Premium
join:2005-08-09
Saint Paul, MN

with their price for life deal on internet....

you would think everyone would be signing up

plk
bo may sleep in loft
Premium
join:2002-04-20
Ogden, IA

Gravy train has ended

How life for the Bells has changed in 20 years. They have made their own bed.
Without a lot of thought about the issue.....If I was Qwest, I would buy DirectTV

It gives them a Nation wide foot print. (which will piss off the other Bells)

Helps solve the deployment of IPTV especially is high cost rural areas.

Makes vdsl2 etc go much further w/o having to cram HD in the stream.

It would allow them to milk copper for another 20 years.

What's your thoughts on this? Can they afford to buy it? Can they afford not to?
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MM

@iauq.com

Qwest a 'Sitting Duck'

Wow I love to hear speculation like this. I love to be able to look back over my shoulder and say I told you so. But I'm not going to actually tell you anything about the company...being an employee. I suggest you take a look at the revolution the cable TV industry has been spending millions to delay. There are requirements that Comcast has spent millions, maybe even a billion to delay. They have a proprietary product and the FCC is requiring them to open it up and they don't like it. Wha wha for cable companies. It's about time the FCC opened up the TV markets for competition like they did the local phone service market.

And who would buy 25 meg DSL anyway. Most people don't want more than 1.5. We do offer a 7 meg service but don't sell a lot of it. Rural areas are another story entirely...believe me the business case doesn't make a whole lot of sense yet we still continue to build to those areas. It's not available everywhere but if you were to actually collect some facts rather than writing conjecture you might know this.

Karl Bode
News Guy
join:2000-03-02

Re: Qwest a 'Sitting Duck'

quote:
Most people don't want more than 1.5
Good thing we're busy avoiding conjecture.
petesgalaxy

join:2007-06-20
Seattle, WA

a sitting duck...NOT

Dick Notebart said it best when he said were just not sure people want TV from the telephone co. let directv do TV, thay do it better than qwest cause thats what they do,and let qwest do broadband and pots. pots is all but dead, it was predicted long ago that all service would evetually be digital. and were close now, pots (voip) will become just another add-in like call waiting. As for mergers, the only one that made sense for qwest was alltel wireless. Alltel serves mostly rural as does qwest. Alltel want more urban which qwest has. qwest needs its own wireless play to stop piggybacking on sprint. But Alltel went private equity, so that deal has passed. merge w/Sprint, thats as good as it gets. FWIW pete
Forums » Qwest a 'Sitting Duck'


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