More QWST news: Qwest Communications Expands High-speed Network
Into 19 Local Markets
Wednesday February 24, 11:46 am Eastern Time
Company Press Release
Qwest Communications Expands High-speed Network
Into 19 Local Markets
Company increases network to 18,815 miles; Reaffirms financial targets for 1999
DENVER--(BUSINESS WIRE)--Feb. 24, 1999-- Qwest Communications International Inc. today announced that it is
expanding its end-to-end connectivity for local service to large and multi-location business in key metropolitan U.S. markets.
The company has completed metropolitan area networks in 10 major cities and is in the process of completing another nine in
other major markets by the end of the year.
These networks would allow large businesses, such as Microsoft and Boeing in Seattle, to directly connect to the Qwest
network and eliminate the access charges that are incurred when using connectivity from local exchange carriers.
The 10 cities include Chicago, Cleveland, Dallas, Boston, New York, Philadelphia, Sacramento, San Jose, Seattle and
Washington, DC. The nine cities that are still in the process of being completed are Albany, Austin, Baltimore, Houston,
Indianapolis, Los Angeles, San Antonio, Newark and White Plains, NY. Qwest said that it expects to announce a more
comprehensive plan for local connectivity by mid-year.
''Qwest believes that it is important to offer customers broadband connectivity on an end-to-end basis,'' said Joseph P.
Nacchio, Qwest's chairman and CEO. ''With this connectivity our customers will have the necessary bandwidth to
cost-effectively run multimedia and Internet-based applications and services.''
These metro area networks compliment Qwest's previously announced agreement with Covad Communications Group, Inc.,
which provides Qwest with digital-subscriber line connectivity in 22 metropolitan markets.
Qwest said that it remains on schedule to complete its previously announced 18,500-mile nationwide network by mid-year. In
addition, Qwest announced it will construct an additional 315 miles connecting Memphis to Tulsa, bringing its total U.S. fiber
optic network to 18,815 miles. This new section will be completed by the end of the year.
Qwest said ''it is comfortable'' with analyst expectations for 1999 and 2000. The estimates include 1999 services revenues of
approximately $3.4 to $3.5 billion; earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately
$750 million; services EBITDA in excess of $650 million; and capital expenditures of $1.4 billion. Estimates for 2000 services
revenues are approximately $4.5 to $4.6 billion, EBITDA of approximately $1.1 billion and capital expenditures of $1.0 to
$1.2 billion.
The capital expenditures and results of operations discussed above may be revised to reflect the company's comprehensive
local connectivity plans that will be announced by mid-year.
About Qwest
Qwest Communications International Inc. (Nasdaq: QWST - news) is a leader in reliable and secure broadband Internet-based
data, voice and image communications for businesses and consumers. Headquartered in Denver, Qwest has more than 8,000
employees and 80 sales offices in North America, Europe and Mexico. The Qwest Macro Capacity (SM) Fiber Network,
designed with the newest optical networking, will span more than 18,500 route miles in the United States when it is completed
by mid-1999. An additional 315 miles by the end of the year. In addition, Qwest and KPN, the Dutch telecommunications
company, are forming a venture to build and operate a high-capacity European fiber optic, Internet Protocol-based network
that has 2,100 miles and will span 9,100 miles when it is completed in 2001. Qwest also has nearly completed a 1,400-mile
network in Mexico. |
