[Qwest CEO says 1998 revenues to increase to $3 bln]
SAN FRANCISCO, Sept. 15 (Reuters) - Qwest Communications International Inc.'s chief executive said Tuesday he sees the telecommunications company's 1998 revenue increasing to about $3 billion.
Of that amount, about $2.4 billion will come from selling communications services on its fibre optic network and about $600 million will come from construction revenue, Joe Nacchio, president and CEO of Qwest, told investors at the NationsBanc Montgomery Securities Investment Conference in San Francisco.
"We see no diminution in demand," Nacchio said. Some analysts and investors have questioned whether there is a glut of capacity in the networks that carry telephone calls.
Qwest competes with telecommunications giants such as AT&T Corp, sells phone services to businesses and consumers.
Qwest, which is building a 18,500-mile long fibre optic telecommunications network, also expects to complete the network on schedule.
"I feel very confident this network will be built on time and on budget," Nacchio said.
He said the company has already dug more than 17,000 miles of trenches in which to lay the cable.
The company, which has been spending millions to build the network, expects capital expenditures to peak in 1998 at $1.3 billion to $1.5 billion Nacchio said, adding that capital expenditures should be about $750 million to $1 billion in 1999.
The company also has a fully funded contract backlog of $1.2 billion, Nacchio said. |
