I agree...here is some more vintage Nacchio
Qwest CEO says recession would have no effect
ATLANTA, Oct 22 (Reuters) - The chief executive officer of Qwest Communications International Inc (Nasdaq:QWST - news) said Thursday that a recession would have no effect on his telecommunications company.
''I don't expect any effect,'' the executive, Joseph Nacchio, said in answer to a question after he spoke at Networld+Interop, a trade show for telecommunications networking equipment.
He said because the Denver-based company's equipment is new it would be able to beat out older competitors on the basis of price. ''During economic downturns, people begin to look for better price points,'' he said.
Qwest is laying 18,449 miles of fiber optic cable to provide long-distance telephone service in 130 U.S. cities. The cable can transmit images and data as well as voice traffic. Nacchio said the system is on schedule for completion in mid-1999.
It is more expensive for older companies, such as AT&T, to move traffic than it is for Qwest because of the age of most of their equipment, Nacchio said,
In his speech, Nacchio bitterly complained that the older companies, particularly the local phone service providers, were delaying deregulation, saying their ''strategy is to preserve yesterday.''
Asked afterward if he were advocating immediate and total deregulation, he told Reuters, ''We should be deregulated, except for the last mile.''
The last mile is an industry term that describes the telephone wire that enters homes, businesses and other users. Most industry observers agree that local incumbent companies paid to build the connection in exchange for their monopoly status and, therefore, they should be able to continue to own it.
Under deregulation, consumers' choices were limited to start with and now they are dwindling, Nacchio said. He cited the reduction in Baby Bells from seven to five due to mergers and noted the number would be reduced to four if the pending acquisition of Ameritech Corp (NYSE:AIT - news) by SBC Communications Inc (NYSE:SBC - news) goes through.
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