Newsmaker: A Qwest for survival

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This kind of integration between wireline and wireless services sounds great. But AT&T and Verizon (Wireless), which own their own wireless infrastructure, haven't been able to do this fully yet. It's also proven difficult for Sprint and the cable operators, which are in a partnership somewhat similar to what you are suggesting, to really achieve tight integration between wireline services and wireless services. So why do you think that Qwest can do it?
Mueller: First, we are good partners. Second, I think it's way too early to say it can't be done. Just because others have not done it doesn't mean it's something we shouldn't look at. I think it's something yet to come.

I'm not saying that because others haven't done it, it's impossible. But it's proven to be a difficult task for even one company that owns both wireless and wireline assets. So why would Qwest, which doesn't own any wireless infrastructure and will have to rely entirely on a partner for that piece of the service, be able to deliver this better or quicker than the others?
Mueller: I think there is more to come. Broadband wireless is going to change the face of the way we do business. We haven't even seen the applications to come. We don't even have the bandwidth in wireless yet to have a significant go at it.

I think that's coming. It's within our eyesight. You've got the 700MHz auction. You've got WiMax--Sprint and Clearwire, whatever they decide to do, if they do it together or on their own. That is going to enable a lot.

I like our position there because it really isn't out there yet. We get to play at the front end of this and not the back end.

Qwest sold the last of its wireless assets in 2004. Looking back, was that a mistake? You say you like your position, and yet your position is that you don't own any of your own infrastructure.
Mueller: I like our position in the market. But one is an economic choice, and one is a market choice, OK? Now, I can't comment on whether it was a mistake. I wasn't here when the assets were sold.

Richardson: The assets had such limited coverage and didn't meet the needs of the marketplace because it didn't have nationwide coverage.

You mentioned Sprint and Clearwire, and their efforts to build nationwide WiMax networks. Would you be willing to invest in helping them build a nationwide WiMax network?
Mueller: I doubt it. I mean, it would have to be powerful economics for us.

You also mentioned earlier today wanting to partner with whoever wins spectrum in the Federal Communications Commission's 700MHz spectrum auction. What kind of partnership would Qwest have with a company that wins this spectrum? Would Qwest lease the capacity and put together its own network?
Mueller: All I meant by that is that there could possibly be another wholesale network that comes out of that auction. We obviously aren't bidding on the spectrum, so we aren't looking to be an investor in the spectrum or the build-out.

We just think there are going to be more big wireless-broadband networks. It won't be just Sprint or Clearwire and WiMax. Possibly, it could be AT&T and Verizon, or a third party that comes out of this. So we would look for anybody that we could be partners with and retail off their network.

Let's shift gears here for a minute to broadband. You talked about Qwest's commitment to upgrading its network by taking fiber to the node or fiber to the neighborhood. Why doesn't Qwest follow Verizon's lead and just take fiber to the home?
Mueller: It's too expensive. We don't see the return.

But Wall Street seems to have looked favorably on Verizon's strategy, and it's starting to pay off. They seem to have a long-term vision.
Mueller: We don't have the resources.

Aren't you worried about commoditizing your network by not offering services like TV?
Mueller: No, that is what we have DirecTV for.

Yes, but you are relying on another company to offer a service to your customers. And you are just providing the transport.
Mueller: We like them.

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[Source00]

Wow... if only they stayed the course...

As a former employee (I had a low level position but with some high level exposure), this article gives me pleasure to no end... the discussion on how Qwest is going to get into the wireless game, how it will integrate their wireline and wireless services and the nature of their partnerships. All of this is ground that was covered back in 1998/1999 and investors have Mr. Joe Naccio and his tiny vision (obscured by his giant ego) to thank for screwing that up royally.

Qwest Wireless (then US West and US West Wireless) was building out a best of breed wireless network following a "make it the best network in the market" strategy (every market they had wireless network in, they dominated market share and had the best coverage and capacity by far), starting in their wireline 14 state region and then growing from there. Network buildouts were gaining in efficiency and had capabilities INCLUDING broadband (2.5 and 3G speed) wireless data (using CDMA technologies) baked in. They also had a very close and positive relationship/partnership with the network infrastructure providers... so they got access to emerging technologies that the other networks simply didn't bother with (e.g. Wireless data, Wireless E 911, Location based services, Wireline integration, Wireless local loop services, etc.). Back then, the vision was convergence of services and Qwest's current consumer offering is a mere echo of the capability they had when they held their wireless assets (that strategy was basically moving all the consumer voice traffic off the copper network to free up the bandwidth for video and data over copper).

The new leadership needs to swallow their pride and look backward in order to move forward. The "I wasn't here when that happened" excuse just doesn't cut it. They need to learn what IP, people, knowledge, etc. it already has in house or nearby to formulate a truly innovative strategy, not just make minor improvements to duct tape and bailing wire crap bundles they are dishing out today. Peter Mannetti (Former president of US West Wireless) is still in Denver and I am confidant Sol Trujillo (President & CEO of US West at that time) could even be lured back to renew this once great company to its former grandeur. Granted it?s a very different company these days (US West was very profitable and flush with cash before Qwest sucked it dry) but these are two leaders who knew what they were doing and were executing on a vision... That vision was clipped short by the greed of an antsy board and a bombastic jackass convict named Joe. Maybe they would be willing to help bring some of that magic back.

The US wireless market is retarded at least... and in some cases seems like it's going backwards. We need a (renewed) champion of emerging technology, not just another crappy reseller who is following the herd. Take a look at Europe and the Pacific Rim countries and try to tell me we are leading this charge in any way shape or form... that needs to change. US West/Qwest used to be that company... maybe it could be again.

[nataliepodkaminer]

this is a great article

this is a great article

[nataliepodkaminer]

reply to this is great

reply to this is great

[nataliepodkaminer]

replying to my own comment?

is this allowed

[nataliepodkaminer]

this is a great article

this is a great article

[jshuffie]

Nice article, but there are other survival options

For starters, it is one thing to have a tag line exhorting customer service, it's another to put actual customer service into practice.
I found this article while searching for a way to communicate with Qwest management. Qwest has done a good job of building a firewall between management and customers.
My family has been loyal Qwest customers for over a decade. Recently, my daughter dropped her phone in a bucket of water. Trying to reach a workable solution with Qwest customer service has been frustrating at best. Now, after all these years of loyalty, we are considering another service provider. Qwest, you need to give your customers a reason to brag about your customer service, develop some flexibility instead of rigidity, and create a communication path to your management team. Your survival depends on it.