Qwest Blames Bad 2nd Quarter on Competition - And announces fiber optic milestone to counter news about decline in income
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Corydon @ 6th Aug 01:23PM:
As of today...
The shiny new "fiber optic" (basically FTTN) service isn't available in my neighborhood, which is a bit disappointing, considering that median home prices in my neighborhood are about $375k and the place is crawling with younger professional couples...exactly the people who Qwest should be targeting.
One side effect of this is that, while Comcast is still running the Slowskys in Denver, Qwest is now claiming that they offer the fastest residential internet connection in town (if you live in the right neighborhood, I guess).
Perhaps this will help speed deployment of DOCSIS 3.0 here, or at the very least inspire Comcast to roll out 16 Mbps service and give their 6 Mbps flagship customers a boost—Qwest is offering 7 Mbps DSL in my neighborhood for about the same price ($41.99 vs. $42.95 for 6 Mbps with Comcast)
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"Think for yourselves and let others enjoy the privilege to do so too."
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nasadude @ 6th Aug 01:44PM:
for FCC to hear?
Quest was just turned down by the FCC for price forbearance in their markets.
maybe this is just public posturing to try to get the FCC to change their minds.
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insomniac84 @ 6th Aug 01:45PM:
Time for some service enhancements.
Current Qwest customers can expect many service enhancements in the future to keep the stock price ever increasing. Such as a 40gb download limit, 1 dollar per gigabyte overage charges, increased internet connection prices for existing customers and the offering of 3 month deals for new customers so they can still advertise the lower price, etc. And Qwest will blame all the "enhancements" on the cost of network upgrades to continue to provide their customers with the quality of service they expect, instead of just admitting it's because of the low stock price and the network is more than capable of handling all of the customers traffic.
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rolljak @ 6th Aug 01:50PM:
Re: As of today...
US Cable in my area offers 10Mbps/1Mbps for $44.95 but Qwest only offers the 1.5/896K for $37 (qwest.net service w/o email NOT MSN. MSN blocks ports for $27 for life).
In Colorado Springs -25min away- Qwest has the 20Mbps for most areas for $99 or the 12Mbps for $46.
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needforspeed59 @ 6th Aug 02:06PM:
Re: Time for some service enhancements.
Ever increasing stock prices? I think you are being sarcastic, right? Q stock is on a downhill Nantucket sleigh ride!
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Great success! High five!
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fiberguy @ 6th Aug 02:20PM:
Re: As of today...
Their "fiber optic internet" is nothing more than "marketing" same as their "digital home phone service" was when they tried to combat cable tv's VOIP and switched digital phone services. Its probably the very same "marketing" that they use where they say they'll fix their service when it goes down, too.*
If there was ever any one company that was grasping at straws, it's Qwest...
(*speaking of my last experience where my line was cut and it took 3 days and a call to the corporate office to get them to dispatch a tech)
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Transmaster @ 6th Aug 02:27PM:
I wondered about all of the fiber optics Qwest
is crowing about so I looked it up and found what they are talking about.
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Send a prayer to Allah, eat Beans.
A Qwest Fiber Optic Christmas Tree |
Jonbo298 @ 6th Aug 02:29PM:
Re: Time for some service enhancements.
said by needforspeed59 :
Ever increasing stock prices? I think you are being sarcastic, right? Q stock is on a downhill Nantucket sleigh ride!
This reminds me of Mad Money's Cramer last year saying Qwest would be the first to $12 out of 3 stocks he had chosen to compare. I was still working at Qwest at that time so I just remember him saying it, and then watching Qwest landslide.
Jockeying for Position: Dynegy (DYN), Brocade Communications (BRCD), Qwest (Q)
Cramer suggested three "horse racing stocks" under $10 to keep investors interested. These are just temporary plays and should be sold when they reach $12. He notes DYN was "trashed" because of its former CEO Chuck Watson, but has been rescued by current CEO Bruce Williamson. He notes that DYN could be an attractive takeover target. "Brocade has momentum but is scary -- which is exciting," Cramer said about his second-favorite pick, which recently bought out its competitor and is in a position to raise prices. Cramer's favorite "horse" is Qwest which is around $9, but should be the first to reach the finish line at $12, because of its big federal contract.
»seekingalpha.com/article/32129-j···april-11
Qwest Communications(Q - Cramer's Take - Stockpickr): "Upward and upward some more ... 22 million shares traded today ... part of a major ramp. I'm sticking by Qwest. I'd even like to buy more." Qwest is sharing in a huge government contract, too.
Another comment from Cramer on a different episode :D
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jester121 @ 6th Aug 02:36PM:
Re: for FCC to hear?
Their publicly released financial statements are "public posturing"? :uhh:
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Camelot One @ 6th Aug 03:24PM:
You can't blame lousy sales on "Competition"
But you can blame lousy sales on having a crappy product that can't compete with your competitors offerings.
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insomniac84 @ 6th Aug 03:45PM:
Re: Time for some service enhancements.
said by needforspeed59 :
Ever increasing stock prices? I think you are being sarcastic, right? Q stock is on a downhill Nantucket sleigh ride!
They work to try to make it ever increasing and the more they fail, the more "enhancements" customers will receive.
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jinjimbob @ 6th Aug 06:02PM:
in rural areas
The is NO competition.
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Transmaster @ 6th Aug 06:16PM:
Re: in rural areas
Qwest has been so busy getting rid of what they call under performing area's, in other words large part of Wyoming Nebraska, etc. The funny thing about some of those areas US West, then Qwest got rid of. They are thanking their lucky stars because they have better service now then with Qwest.
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Send a prayer to Allah, eat Beans.
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dynodb @ 6th Aug 06:21PM:
Re: Time for some service enhancements.
said by insomniac84 :
Current Qwest customers can expect many service enhancements in the future to keep the stock price ever increasing. Such as a 40gb download limit, 1 dollar per gigabyte overage charges, increased internet connection prices for existing customers and the offering of 3 month deals for new customers so they can still advertise the lower price, etc. And Qwest will blame all the "enhancements" on the cost of network upgrades to continue to provide their customers with the quality of service they expect, instead of just admitting it's because of the low stock price and the network is more than capable of handling all of the customers traffic.
Way to make things up without the slightest clue what you're talking about.
They're not going to institute a 40GB cap, and no provider's network can handle an unlimited amout of traffic.
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dynodb @ 6th Aug 06:38PM:
Yet another dishonest, unresearched article at BBR
I have to wonder if KatherynV actually read the earnings report instead of just skimming a newspaper summary.
This are the sections in the report that directly cite competition:
Total voice services revenue of $1.8 billion declined 9 percent year over year as access lines continued to be impacted by increased competition, wireless substitution and deteriorating economic trends. At the end of the second quarter, total access lines were 12.2 million - a decline of 8.2 percent from the end of the second quarter of 2007...
Voice and wireless services revenue declined 8 percent compared to the second quarter of 2007 and 3 percent sequentially due to competition, technology substitution and economic pressures.
They didn't blame competition as THE reason for the decline in revenue, but as one of several factors. They did cite it as a reason for loss of POTS and wireless revenue.
In terms of the revenue decline from the previous year, they cited taxes as the most significant factor:
Net income for the quarter was $188 million compared to $157 million in the first quarter of 2008 and $246 million in the year-ago quarter. The sequential increase in net income is due to the recognition of a severance charge in the first quarter. The year-over-year decline in net income was largely the result of the reversal of the valuation allowance against deferred tax assets in 2007 leading to higher income tax expense year over year.
Not that I expect BBR to act like a legitimate news organization (they aren't), but perhaps spending 5 minutes of reading the actual earnings statement before posting would've been in order?
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dvd536 @ 6th Aug 07:42PM:
Re: Time for some service enhancements.
said by insomniac84 :
Current Qwest customers can expect many service enhancements in the future to keep the stock price ever increasing. Such as a 40gb download limit, 1 dollar per gigabyte overage charges, increased internet connection prices for existing customers and the offering of 3 month deals for new customers so they can still advertise the lower price, etc. And Qwest will blame all the "enhancements" on the cost of network upgrades to continue to provide their customers with the quality of service they expect, instead of just admitting it's because of the low stock price and the network is more than capable of handling all of the customers traffic.
Don't you HAVE to upgrade the network before you can CLAIM you spent money on network upgrades?
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When I gez aju zavateh na nalechoo more new yonooz tonigh molinigh - Ken Lee
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dvd536 @ 6th Aug 07:48PM:
Re: You can't blame lousy sales on "Competition"
said by Camelot One :
But you can blame lousy sales on having a crappy product that can't compete with your competitors offerings.
Pretty much sums it up. then to offer 20mbit service of which 3+mbps is consumed by an archaic PPP protocol and then they unlike verizon DON'T compensate you by setting the link rate 3+mbps higher than what they're hawking
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When I gez aju zavateh na nalechoo more new yonooz tonigh molinigh - Ken Lee
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TACSPEED @ 6th Aug 07:54PM:
Re: Yet another dishonest, unresearched article at BBR
quote:
In terms of the revenue decline from the previous year, they cited taxes as the most significant factor:
I don't think Qwest is getting revenue from from a valuation allowance.
I suspect the only revenue Qwest is getting from taxes is from the universal slush fund.
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Fiber Optics is the future of high-speed internet access. Stop by the BBR Fiber Optic Forum.
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dynodb @ 6th Aug 08:17PM:
Re: Time for some service enhancements.
FTTN and GigE trunks associated with them don't qualify as upgrades?
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dynodb @ 6th Aug 08:21PM:
Re: Yet another dishonest, unresearched article at BBR
More taxes = less revenue. It's not complicated.
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rawgerz @ 6th Aug 11:36PM:
Re: Time for some service enhancements.
If he was always right, he wouldn't be working at CNBC :D
But that is one hell of a loss! Reminds me of Sprint.
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insomniac84 @ 7th Aug 12:11AM:
Re: Time for some service enhancements.
said by dynodb :
They're not going to institute a 40GB cap, and no provider's network can handle an unlimited amout of traffic.
There is no such thing as unlimited. You are limited by megabits a second times the amount of seconds in a month. When an ISP offers a speed you can use that to find out what you your maximum total bandwidth per month can be.
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anon @ 7th Aug 01:21AM:
Re: in rural areas
Yep, they still have me at 256/256 just 1 mile outside of Omaha, Nebraska. They are way behind. Cox Cable internet is just out of reach for me as well.
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