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Technology Stocks : Qwest Communications (Q) (formerly QWST) -- Ignore unavailable to you. Want to Upgrade?


To: MangoBoy who wrote (1555)6/18/1998 12:43:00 PM
From: Elroy Jetson  Respond to of 6846
 
I'd be suprised if the one time payments Nacchio obtained from GTE et.al. to build out the system are the end. If there's anything he should have learned from his mentor Biaggi, its the value of an annual rental from a right-of-way.

Of course Qwest can increase their capacity at a minimal cost. But I'm sure they would sell additional fiber to others at a fee similar to what they charged to pay for the entire construction cost. Railway right-of-ways are VERY expensive. Qwest's ownership of the the pipe right-of-ways is worth far more than most would guess. When Naccio says he can sell long distance for 2 cents a minute and make money, that's only part of their potential revenue stream.