Ian, tcg, Ken, etc. re: broadband & DSL -- I once owned Westell (which we called Westhell)<WSTL> while awaiting the fulfillment of the promise of DSL technology. I got tired of waiting. I'm also really long in Qwest<Q>. Comments similar to the comments in Q's latest PR on its Qtrly results are also why I bought NT when it first dropped to $40US last and why I have added to it. I snipped huge chunks of the PR, but the ones I reprinted below relate to comments you all and others have made on broadband capacity and DSL lately. Thought you'd like to see these broadband and DSL growth rates even though the discussion focuses on Q instead of NT since, if Qwest is expanding in areas favorable to the use of NT products, Qwest's competitors are. My gratuitous asides are in brackets (you
know, [ ]).
Feel free to take issue with what you see here, especially if you think it's wrong. The object is to ensure we have good info on which to base our opinions.
Regards,
Harry J.
====
DENVER, Jan 24, 2001 /PRNewswire via COMTEX/ -- Qwest Communications International Inc. (NYSE: Q chart, msgs), the broadband Internet communications company, today announced record revenue and earnings before interest, taxes, depreciation and amortization (EBITDA) for the fourth quarter and full-year 2000. Qwest has met or exceeded the consensus of analysts' estimates for the 15th consecutive quarter. [yeah, yeah, gimme some facts]
[snip]
Fourth quarter revenue of $5.02 billion was a 9.9 percent increase over pro forma normalized fourth quarter 1999. The revenue growth was driven by strong demand for Internet and data services, which increased by almost 40 percent in the quarter. [Overcapacity now? How long to a shortage of capacity @ 40% per QTR increases in demand?] Wireless services revenue grew 90 percent in the quarter to almost $150 million with more than 805,000 customers at year-end. [Remember, wireless transmissions usually spend at least some of their lives traveling over pipe.]
[snip]
The EBITDA improvement was achieved despite significant investments [i.e., capital expenditures including parts from NT] in growth areas such as hosting, local broadband access, Internet and data services, and service improvements. [As I recall, some of this involved purchases from NT notwithstanding the conventional wisdom was that a slowdown in purchases by installers was hurting mfrs like NT.]
[snip]
INTERNET AND DATA SERVICES
Internet and data revenues for the fourth quarter 2000 grew approximately 40 percent over the fourth quarter of 1999. The company saw strong demand for Internet access, hosting, digital subscriber line (DSL), virtual private network, frame relay, ATM and professional services. Internet and data services revenue represented 70 percent of Qwest's total revenue growth in the quarter. [parts is parts, and NT makes parts.]
[snip]
Qwest ended 2000 with more than 255,000 DSL customers, more than double the previous year and exceeding the company's year-end target of 250,000. Qwest expects to double the number of DSL customers to 500,000 by the end of 2001. Qwest leads the industry with 846 DSL customers per central office with DSL-equipped facilities. About 85 percent of DSL customers install the service themselves without requiring a technician. [Like some of you, I decided a couple years ago to wait on DSL until I could "do it myself", particularly after I heard that Bell Atlantic (now Verizon) was scheduling three techies for three days for the average installation in the WDC area where I live. Maybe it's time to reconsider . . . And once we start purchasing and using, the local offices likely will upgrade for mass use - more parts, some of which may be from NT.]
[snip]
Qwest has completed local fiber networks in 11 markets and has introduced end-to-end broadband services to business customers, including Internet access, application hosting, integration of local area networks and long distance services. Qwest is on track to complete the remaining 14 local networks by the end of 2001. [I think this is that "last mile" concern - still more parts?]
[snip to end - all the financials, too many of which I probably left in above.]
eom |
