Some vendors have said that they’re seeing very little pullback in overall carrier network build plans despite the economy, but the proof is in the pudding, as they say. And Qwest Communications International Inc. is stepping up to the plate to be the pudding cup in this case. The carrier said it will build out six new fiber rings, out-of-region – even though it’s reported lower profits and layoffs for the fourth quarter.
The reason? Call it hedging one’s bets. “Our Business Markets group outperformed the industry with a 4 percent increase in revenue in the fourth quarter,” said executive vice president and COO Tom Richards on the company’s earnings call. So, to keep things going, Qwest will be fibering up its footprint, supporting Ethernet and focusing on delivering IP and managed services to the business market. He said the idea is to make Qwest more competitive overall.
However, things are not all sunshine and light when it comes to the corporate sector. “We did notice a slowdown in enterprise billing activity in the fourth quarter, which carried into January,” Richards said. “But the overall pipeline is not deteriorating. The pace of decision-making seems to have slowed, and we probably will see an impact on our top-line growth in the second quarter.”
And accordingly he did say that Qwest’s building plans could change if the economy slows more dramatically than is expected.
