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Score another one for the incumbent RBOCs.
While competitive digital subscriber line carries continue to flounder, Qwest Communications reported a booming fourth quarter with revenue exceeding $5 billion across its many business units.
Revenue grew 9.9 percent for the quarter overall, with a net earnings of $270 million. Internet and data services revenue rising almost 40 percent fueled by high demand. Internet and data services comprise 70 percent of the company's total revenue growth.
Earnings per share rose from 11 cents to 16 cents for the quarter.
The DSL subscriber head count rose to more than 255,000 in the quarter, and the company is projecting it will reach the 500,000 mark by the end of 2001. That number may be fueled by the self-installation rate, which stands at 85 percent.
Other developments for the quarter include $750 million in wholesale agreements forged with McLeodUSA and Eschelon Telecom to provide voice and data service within Qwest's 14-state RBOC region. It also signed a $100-million, multiyear deal with Britain's Cable & Wireless to supply network capacity.
On the enterprise hosting and service front, the company is in the middle of an expansion period, opening new data centers in Seattle, Sterling, Va. and Sacramento in the quarter. Qwest now has 14 cyber centers and plans to add 10 more by the end of 2001.
Qwest has fiber networks in 11 markets and plans to build out the remaining 14 markets by the end of 2001. Its newly formed Qwest Interactive services division has developed more than 1,500 Internet applications for enterprise customers.
In a related story, Qwest also announced it has nailed down $50 million in contracts for Internet and professional services through that division. Companies on the client list include Citibank, Procter and Gamble and Fleet Securities.
The carrier has also formed a wireless application development team to create mobile interactive platforms and products.
But not all of the news was good for employees. The company also met its dubious target of 4,500 job cuts by the end of 2000. - K.B.
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