CNET también está disponible en español. Don't show this again. But as Qwest nears completion of its domestic network, slated for the second quarter of 1999, the company must begin lighting it up--that is, filling it with traffic. Analysts said data services may be the majority of Qwest's business since the industry is heading in that direction, and many consumers are unfamiliar with Qwest as a long distance brand. Qwest expects data traffic to eventually account for the majority of the transmissions on its 18,449 miles of fiber, or about two-thirds of the traffic by the year 2000, said Jack McMaster, a senior vice president and acting CEO of the new KPNQwest European business.
McMaster said the demand for capacity and bandwidth in the U.S, and Europe is "mushrooming"--and Qwest is ahead of the curve, But building a network is not a profit-making venture, selling services on a network is, In order to expand its iphone screen protector that blocks side view long distance business, Qwest forged an alliance with regional phone giant US West to market its long distance services, But federal regulators, who have stringent requirements on how local phone companies operate, have squashed the partnership, RegulatoryInterventionWhen the Federal CommunicationsCommission ruled that established local phone companies could not market Qwest's long distance services, it appeared to be a blow to the upstart long distance carrier, Qwest is appealing the decision..
But analysts said the setback may only be a minor hitch in an otherwise rosy future for the emerging carrier. Qwest had hoped to market long distance phone service through regional Bell operating companies US West and Ameritech. Qwest and US West already had signed up about 130,000 customers in three weeks for a ten cents per minute offer. "Qwest was aggressive in striking these marketing agreements," said MarkLangner, a telecommunications services analyst with investment bank Hambrecht & Quist. "It was an opportunistic thing for Qwest to try and do. But it was meant to test the edges of the regulatory environment.".
Although Qwest didn't win this regulatory battle, analysts said the effortmay have helped to raise the company's profile with the regional phone companies, "Eventually the RBOCs are going to get loose in long distance and Qwest is better positioned than most to benefit," Langner said, "They're big enough to partner up with an RBOC but they're small enough not to be a real competitive threat.", In the wake of the FCC's ruling, emerging carriers such asQwest, Level 3 Communications, IXC Communications, Williams Communications, and Frontier, must now market long distance voice on their iphone screen protector that blocks side view own..
"[The FCC decision] could cause them to change their strategy a little, but I think there are so many opportunities for Qwest," said Steve Wing, a research analyst at American Frontier, a small cap brokerage based in Denver. "They may still be able to hook up with some of the RBOCs for data services. I don't think this is necessarily the last round in this fight.". "This is a small bump in the road when you're traveling at the speed Qwestis traveling at," McMaster said. Other observers agree the young company, established in 1997, has plenty of other avenues for making money.
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