[1st-mile-nm] Qwest cost cutting on fiber, while Verizon spends

Richard Lowenberg rl at 1st-mile.com
Thu Jun 12 11:14:40 PDT 2008


(Editted for brevity.  rl )

Qwest CEO Says Cost Cutting Will Continue
JUNE 09, 2008

Qwest Communications International Inc.'s plans for organic growth may be on
hold a while as CEO Ed Mueller says the economy is going to make for tough
sledding in the weeks and months ahead.

?We?re holding our own,? said Mueller. ?With the economic trends, while
[wireless] substitution continues, we now see that by the end of the year,
we?ll be at the lower end of our guidance.?

Mueller also said Qwest isn?t done cutting costs. ?A big part of our expense
reduction is facility costs, and I do believe there is more room there."

He pointed out that in the first quarter of this year Qwest added 13,000
subscribers to its recently upgraded fiber-to-the-node (FTTN) network and that
future pair bonding upgrades will allow the company to deliver four to five HD
streams to each individual home and, as a result, bring in even more new
customers.

But despite what Mueller says has been a successful foray into FTTN, he
cautioned that further capex investments in the network should not be expected.
?We?re not going to change our capex without a really compelling case."

Instead, Qwest will focus more on its partnerships to bring in new revenues, as
it hopes its new relationship with Verizon Wireless will allow it to sell more
wireless data to its customers.

www.lightreading.com/document.asp?doc_id=155948&site=nxtcomm

-------

Verizon says FiOS buildout may exceed plans

Telephony Online
By Ritsuko Ando

Verizon Communication Inc said on Tuesday it could build out its all-fiber
Internet and video network to more than its target of 18 million homes by the
end of 2010, despite a weaker U.S. housing market and softer consumer spending.

Verizon President and Chief Operating Officer Denny Strigl said the company
could expand FiOS, delivered over an advanced network that will cost more than
$20 billion to build, at a faster pace than the original plan without a big
hike in spending.

http://www.reuters.com/articlePrint?articleId=USN1036567020080610


-- 
Richard Lowenberg
1st-Mile Institute
P.O. Box 8001, Santa Fe, NM 87504
505-989-9110;   505-603-5200 cell
rl at 1st-mile.com  www.1st-mile.com

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