osewalrus (osewalrus) wrote,

Link Harvest: Qwest's Falling Profits

Qwest's profits fell significantly (49%) in Q4.

A couple of things to note for the telecom world. Some factors are unique to Qwest. Qwest is in a region that is particularly suffering from significant foreclosures and business failures, which contribute to a loss of lines and data customers. Qwest has also always been the weakest of three major telcos, because it's more extensive rural coverage area drives up cost and reduces rate of return. So when decline is spread among all industry participants, it is particularly precipitous for Qwest.

Qwest also lacks two things that have softened the blow for AT&T and Verizon: it lacks wireless and significant video offerings. AT&T and Verizon offset losses in landlines (which have been steadily declining for the last decade as customers dropped second lines in favor of DSL, "cut the chord" and relied solely on wireless, or switched to cable triple play packages).

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