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Technology Stocks : Qwest Communications (Q) (formerly QWST)
Q 85.91-6.6%Nov 13 3:59 PM EST

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To: Nick who wrote (1158)4/21/1998 6:13:00 PM
From: Ernie Kelley  Read Replies (2) of 6846
 
Did QWST sell too much?
Both GTE and Frontier helped finance Qwest's network by buying dark fiber along almost all of Qwest's routes. In the proxy statement that they wrote for the buy out of Phoenix under "Competition" it states, "Upon completion of the Qwest Network, each of Frontier and GTE will have a fiber network similar in geographic scope and potential operating capability to that of Qwest." With dense wavelength division multiplexing (DWDM) systems the exact number of fibers that you own becomes much less important that where those fibers go. I would think that some of these sales may come back to haunt them. FRO's market cap is quite a bit smaller then QWST's so it would seem that you could buy the same network at a lower price. I think the Qwest system is great, I'm just worried that they may have given away the store in building it. Any comments?
Ernie Kelley
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