Qwest and U S WEST to Offer Integrated Broadband Communications Services

Qwest Communications International Inc. (Nasdaq: QWST) and U S WEST (NYSE: USW) have announced plans to introduce a comprehensive package of integrated high-speed Internet, data, and voice services for small and medium-size business customers in Sacramento, California, starting in the first quarter of 2000. The companies aim to capitalize on the growing demand for broadband communications services, with 25 national markets targeted for introduction of fully packaged broadband communications services. This move is part of their proposed merger, which was approved by their shareholders, and is expected to bring increased competition and choice to the market.

Key Takeaways:

• Qwest and U S WEST will offer a complete package of integrated high-speed Internet, data, and voice services for small and medium-size business customers in Sacramento, California, starting in the first quarter of 2000.
• The companies are targeting 25 national markets for the introduction of fully packaged broadband communications services, including the national introduction of U S WEST's MegaBit Services DSL and business-specific Internet applications.
• The combined entity will employ about 64,000 people and be headquartered in Denver, Colorado, with a network spanning over three million miles of deployed fiber in the U.S. and worldwide.
• The companies expect to benefit customers through increased competition and choice, with lower costs and access to more advanced high-speed services.
• The services to be offered include high-speed DSL broadband services, value-added business-specific applications, full suite of business long-distance services, and Internet connectivity and e-commerce applications.
• U S WEST provides a full range of telecommunications services to more than 25 million customers nationally and in 14 Western and Midwestern states.
• Qwest and U S WEST will also serve large business customers who desire simple and cost-effective DSL, dedicated fiber access, and other high-speed communications solutions.

Statistics:

• The two companies are targeting small and medium-size businesses, which will spend roughly $42 billion on network hardware and communications services in 1999, according to analyst firm Cahners-Instat.
• Qwest and U S WEST have more than three million miles of deployed fiber in the U.S. and worldwide.
• The Qwest Macro Capacity(R) Fiber Network spans more than 18,500 miles in the United States, with an additional 315-mile network to be completed by the end of the year.
• Qwest and KPN have formed a venture to build and operate a high-capacity European fiber optic, Internet Protocol-based network that has 2,100 miles and will span 8,100 miles when it is completed in 2001.
• Qwest has also completed a 1,400-mile network in Mexico.

Sources:

• Qwest Communications International Inc. (Nasdaq: QWST)
• U S WEST (NYSE: USW)
• Cahners-Instat
• www.uswest.com