Home » Broadband Speed »CenturyLink »Competition »Public Policy & Gov't »Qwest »Rural Broadband »Video » Currently Reading:

Qwest’s Chief Financial Officer: “There Needed to Be More Industry Consolidation, Like Cable TV”

Phillip Dampier December 6, 2010 Broadband Speed, CenturyLink, Competition, Public Policy & Gov't, Qwest, Rural Broadband, Video No Comments

Qwest’s head of financial matters told Bloomberg News the company’s decision to sell out to CenturyLink made good financial sense because the telecommunications industry needs more industry consolidation.

Chief Financial Officer Joe Euteneuer said the time was right for Qwest to sell operations in the north-central and mountain west region because there were too many competitors in the marketplace.  Euteneuer said the telecommunications market needs to resemble the cable-TV business, which has been heavily concentrated into two huge powerhouses — Comcast and Time Warner Cable.

Qwest’s merger with independent telephone company CenturyLink continues the consolidation underway among independent phone companies not affiliated with AT&T or Verizon Communications.  The merged entity will challenge Frontier Communications’ position in the landline marketplace.  Regulators in Qwest’s service area have been giving cursory review of the proposed merger and the company expects few problems in getting the merger deal approved in every state affected.

Euteneuer

The merged entity, tentatively to be called CenturyLink, has been spending most of its public relations efforts talking up the reshuffling of its management and executive office operations.

CenturyLink is promoting executives to new regional management positions the company unveiled Friday.  CenturyLink’s new regional structure:

  • Eastern, headquarters in Wake Forest: President Todd Schafer, current president of Century Link’s Mid-Atlantic region. Member states are Georgia, New Jersey, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee and Virginia.
  • Midwest, headquarters in Minneapolis: President Duane Ring, current president of CenturyLink’s Northeast region; Illinois, Indiana, Iowa, Michigan, Minnesota, Nebraska, North Dakota, South Dakota, Wisconsin.
  • Mountain, headquarters in Denver: President Kenny Wyatt, current president of CenturyLink’s South Central region; Colorado, Montana, Utah, Wyoming.
  • Southern, headquarters in Orlando: President Dana Chase, current president of CenturyLink’s Southern region; Alabama, Arkansas, Florida, Kansas, Louisiana; Mississippi, Missouri, Oklahoma, Texas.
  • Northwest, headquarters in Seattle: President Brian Stading, current vice president of network operations and engineering for Qwest; California, Idaho, Oregon, Washington.
  • Southwest, headquarters in Phoenix: President Terry Beeler, current president of CenturyLink’s Western region; Arizona, New Mexico, Nevada.

For both companies’ tens of thousands of employees, there is some trepidation about “cost savings” (translation: job losses) that are also expected from this deal.

In Nebraska, more than one thousand employees remain unsure whether they’ll still have jobs after the merger.

Qwest’s president for Nebraska operations, Rex Fisher, is not waiting around to find out.  He’s leaving, saying CenturyLink’s plan to restructure management roles “weren’t opportunities I was interested in,” the 53-year-old executive said.

A Qwest spokeswoman told the Omaha World-Herald the change in itself will have minimal immediate impact on the workforce level in Omaha.

Joanna Hjelmeland told the newspaper specific changes for Omaha’s workforce will “become more clear down the road,” Hjelmeland said.

“We are combining two companies, and in some instances there are going to be redundancies,” she said. “Eventually there are going to be job reductions as a result of the merger.”

http://www.phillipdampier.com/video/WKBT La Crosse WI CenturyLink moving regional headquarters out of La Crosse 12-1-10.flv

WKBT-TV in La Crosse, Wis., reports the city is going to lose Qwest’s regional headquarters, formerly located in La Crosse, as part of the merger shuffle.  (1 minute)

Brian Stading, current vice president of customer operations for Qwest in Denver, is now preparing to relocate to head the regional office in Seattle.  He outlined some of the changes expected to impact Qwest/CenturyLink customers in the region.

“I think you’ll see the continued focus on providing the highest quality service at the best possible price, both from a local phone service as well as from a high-speed Internet perspective and you’ll see a continued emphasis on expanding our broadband capability both in the city as well as in regional areas,” Stading told the Puget Sound Business Journal.

Stading claims the company will be refocusing efforts to improve the reliability of its core business – landline service, and make incremental upgrades to broadband capability and speed.

“A lot of that does overlap with our high-speed broad deployment because any time we have the opportunity to go put in new fiber lines, it just provides additional quality throughout our backbone networks, so the two really do go hand in hand, both the expansion as well as the continued emphasis on reliability,” Stading said.

But there is every indication Stading is referring to middle-mile fiber infrastructure — cable that runs between telephone company central office facilities, and not to individual customer homes.  CenturyLink, like Qwest, relies almost exclusively on DSL service delivered over standard telephone lines for broadband services.  Qwest has also been deploying ADSL 2+ technology, a more advanced form of traditional DSL, in some areas in the Pacific Northwest and mountain west region.  But many Qwest customers have no access to broadband at all, because of the remote areas the phone company serves in many states.

http://www.phillipdampier.com/video/Bloomberg Qwest's Euteneuer Says Industry Consolidation Was Needed 11-18-10.flv

Bloomberg News talks to Joe Euteneuer, Qwest’s CFO about why Qwest merged with CenturyLink.  (4 minutes)

Search This Site:

Contributions:

Recent Comments:

  • Unloaded One: I'm a TWC customer and I'm bracing for things to go from bad to worse should this merger go through. I want to be optimistic but they don't make that ...
  • Joe V: Yes, last bill I paid a few days ago was $71.00-for a 6-meg connection which truthfully is 4.8-megs. I have contacted Sonic.net, DSL Extreme, Earthl...
  • Phillip Dampier: $71!!!! Do you know if Earthlink is available in your area without a data cap over AT&T DSL? You might try and visit Earthlink's website and see i...
  • Joe V: You know Phil I have AT&T really slow DSL here in California. I'm supposed to get 6megs-in reality its 4.8 or slower depending on time of day-pl...
  • Dancer: Frontier shall begin their rapid GPON FiOS expansion on all territories serviced by Verizon before because Verizon loves to reduce Fiber opportunities...
  • BobInIllinois: Bob, Cableco's have much larger profit margins on internet service than they do on TV service....
  • Bob: Apparently Charter's service differs depending on location. I live in southwest Michigan and I've had very good service from Charter. Every time I hav...
  • Juan V: What is the alternative. I loved to be able to go to sleep at night listening to something streaming over the network. I need to keep my costs low for...
  • Josh Emerson: I've had Charter for years and they're actually pretty good. Just tested my speed and got 64Mbps. I'm paying for 60Mbps so I'm actually getting more. ...
  • Funnybunnyofdoom: I am appalled at their business practices. I received a "free offer" today from them that seems too good to be true. After doing a little research I f...
  • Scott in Austin: Doubtful. I pay $40 a month for 50 Mbps up with Time Warner Cable and have never had a problem. Will I get the same with Charter?...
  • RJW: @Judi Z just to let you know you can find a lot of the 50s like Whirlybirds, I married Joan, Leave it to Beaver etc on YouTube. Just for the heck of ...

Your Account: