Qwest Communications Expands High-speed Network Into 19 Local Markets
Wednesday February 24, 10:15 am Eastern Time
Company Press Release
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.
For more information, please visit the Qwest web site at
www.qwest.com.
This release may contain forward-looking statements that involve risks
and uncertainties. These statements may differ materially from actual
future events or results. Readers are referred to the documents filed by
Qwest with the SEC, specifically the most recent reports which identify
important risk factors that could cause actual results to differ from those
contained in the forward-looking statements, including potential
fluctuations in quarterly results, dependence on new product
development, rapid technological and market change, failure to complete
the network on schedule and on budget, financial risk management and
future growth subject to risks, Qwest's ability to achieve Year 2000
compliance, adverse changes in the regulatory or legislative environment,
and satisfactory negotiation and execution of definitive documentation.
Qwest undertakes no obligation to review or confirm analysts'
expectations or estimates or to release publicly any revisions to any
forward-looking statements to reflect events or circumstances after the
date hereof or to reflect the occurrence of unanticipated events.
The Qwest logo is a registered trademark of Qwest Communications
International Inc. in the U.S. and certain other countries.
Contact:
Qwest
Media Contact:
Christine Weiner, 303/992-2085
chistine.weiner@qwest.com
or
Investor Contact:
Lee Wolfe, 800/567-7296
IR@qwest.com |
