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Qwest Broadband Pricing Working Group Seattle, WA June 24-25, 2003.

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Presentation on theme: "Qwest Broadband Pricing Working Group Seattle, WA June 24-25, 2003."— Presentation transcript:

1 Qwest Broadband Pricing Working Group Seattle, WA June 24-25, 2003

2 2 Telecom Post-Bust Strategies Debbie Montano Director, Advanced Internet Initiatives Government & Education Solutions Qwest

3 3 Telecom Post-Bust Strategies There has been a shift in strategy. Qwest is still here and going strong! Not post bust for everyone yet.

4 4 Qwest at a Glance 50,000 employees 25 million customers 1 million wireless customers 551,000 DSL customers 240 million calls transmitted across network daily 600 million s transmitted across network daily Approximately 16.9 million access lines More than 180,000 miles of fiber optic network capacity

5 5 Marketplace Priority Shift THENNOW Top Line Growth (revenue) Leveraged Growth Internet at any Cost Technology Business Model Bottom Line Growth (earnings) Total Cost Position Core Focus/Simplicity Service Business Model

6 6 Global Footprint Begin Re-entering LD Market Expand Product Portfolio Improve Service Levels Intensify Service Focus Finish Re-entering LD Market Optimize Existing Platform Provide Complete Solutions Qwest Priority Shift THEN NOW

7 7 If we build it, they will come. If it is profitable, we will build it. Qwest Priority Shift THEN NOW

8 8 Ride the Light Spirit of Service Qwest Priority Shift THEN NOW

9 9 Qwest Improved Financial Position First quarter (Q1) 2003, Qwest had… –net income: $150 million –diluted earnings per share: $0.09 –revenue: $3.63 billion –operating expense (cost of sales & SG&A) decreased $233 million, or 8.1%, year-over-year. Strengthened the balance sheet –new $1.75 billion loan, June 2003 (at low interest rate) –reduced principle borrowings by ~$2.2 billion from debt exchanges –expecting $7.1 billion from Qwest Dex sale (phases 1 & 2)

10 10 Qwest Long Distance Re-entry Status Goal: Re-entry in 14 local service states by mid-2003 * One Million Long Distance Lines – as of today!

11 11 Qwest Long Distance Re-entry Status Qwest Long Distance Corp (QDLC) approved (has 271 relief) in 12 of the 14 states –QLDC does voice long distance only. –In Q1, Qwest signed up 530,000 lines/customers. –Filed in Minnesota, Mar 28, 2003 (decision June 26) –Will file in Arizona soon. Qwest will get full 271 relief once we complete restatement of prior year financials –Then 271 relief will be almost immediate in approved states. –Expected end-of-summer/early fall –Then can offer Internet at Quilt pricing in-region.

12 12 Touch America – new developments Touch America – just filed for chapter 11 last week. Qwest announced settlement with TA this week –Will be ensuring continued operation/smooth transition –Will be acquiring some TA fiber assets (dont know exactly where yet).

13 13 The Qwest Business Model Leadership Spirit of Service TM Proven Network Technology Comprehensive Solutions

14 14 Leadership New Leadership – Dick Notebaert Leadership to continue to improve Qwests financial position Leadership to focus on the right things. Leadership to continue to navigate Qwest out of rough waters.

15 15 The Qwest Business Model Leadership Spirit of Service TM Proven Network Technology Comprehensive Solutions

16 16 Build business profitably The Spirit of Service TM Work as a teamPut Customers first

17 17 The Qwest Business Model Leadership Spirit of Service TM Proven Network Technology Comprehensive Solutions

18 18 Qwest Long-Haul and Local Network

19 19

20 20 QWave service is not available in the states of AZ, MN, MT, NM, OR and SD until Qwest receives regulatory authorization to provide interLATA services in these states. Local loop is required and can be supplied by Qwest or a third party at an additional charge. Qwest QWave Network Footprint

21 21 The Qwest Business Model Leadership Spirit of Service TM Proven Network Technology Comprehensive Solutions

22 22 Solutions Services! Solutions! – not technologies. Partner to create solution, and provide new advanced technologies, needed by customers. Be flexible, creative, open, efficient Work together

23 23 Solutions WAN Strategy –Solutions, not technology… GigE – Internet & Access –OnFiber; Metro Optical Ethernet –LAN Switching Service; GeoMAX Next Gen Optics – ideas to lower costs… –Ultra Long Haul –Optical Switching –Tuneable Optics…

24 24 The Qwest Business Model Leadership Comprehensive Solutions Spirit of Service TM Proven Network Technology

25 25 Thank you


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