Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: NDBFREE who wrote (42737)	10/31/2007 12:19:09 PM
From: FJB	Respond to of 42804

Qwest to Spend Up to $300M on FTTN OCTOBER 30, 2007 Qwest Communications International Inc. (NYSE: Q - message board) announced today that it plans to spend up to $300 million to pass an additional 1.5 million homes with its fiber-to-the-node network. (See Qwest Reports Q3.) "As we look to the future, we're convinced that increased bandwidth to our customers is critical to our long term success," said Qwest CEO Ed Mueller on the company's third-quarter earnings call this morning. Mueller says that Qwest will deliver more than 20 Mbit/s in bandwidth to each home on this network, which is higher than what AT&T Inc. (NYSE: T - message board) is giving its customers over its own FTTN network. With pair bonding, Mueller says, "we believe it may be possible to double that speed." By expanding the availability of all that bandwidth, there is speculation that Qwest might be looking to follow AT&T and Verizon Communications Inc. (NYSE: VZ - message board)'s lead with a TV service. "Management expects to offer speeds above 20 Mbit/s, which we believe could set the stage to offer terrestrial video," writes UBS AG analyst John Hodulik in a note to clients today. Mueller, however, said, "we're not having a new video strategy, we're staying with DirecTV," when asked on the conference call. Since Mueller was appointed CEO in August, he has been reviewing Qwest's businesses and this mild increase in capital spending on the fiber-to-the-node network is the first significant initiative of his tenure. His lack of any sweeping pronouncements and grand plans have worried some -- and Mueller says he understands. "I get the uncertainty but I think it's reasonable coming in at the end of August and having a strategic review," he says. "I get that the cloud is over there, I understand that and we're willing to put up with that." Qwest's stock is trading near its 52-week low and, though the company's net income jumped by a lot this quarter, the gain was almost exclusively due to a one time $2.1 billion tax benefit. lightreading.com