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U S West

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U S West

CA 1999 / 1999 revenue: 13,2 MM$ (+6,5%)
Bénéfices 1999 / 1999 income: 1,3 MM$ (-11%)

It was coming down to an Old West shootout. But U S WEST, the object of a monthlong takeover standoff between rivals Global Crossing and Qwest Communications, has hopped in the saddle with Qwest. U S WEST provides local phone services to more than 25 million customers in 14 western and midwestern states in the US. It also provides directory publishing, out-of-territory long-distance service, high-speed data networking, Internet access (more than 500,000 customers), and PCS wireless phone service (500,000 subscribers). Before riding into the sunset with Qwest, U S WEST is improving its poor customer service reputation. The acquisition continues to face state regulatory scrutiny.

Qwest

CA 1999 / 1999 revenue: 3,9 MM$ (+75,1%)
Bénéfices 1999 / 1999 income: 458,5 M$

A Qwest at the speed of light: Qwest Communications International provides Internet access, data, multimedia, and voice services over its 25,500-mile broadband fiber-optic network. Covering 150 US metro areas and reaching into Mexico (1,400 miles), the network uses Internet protocol and traditional technologies. Through its joint venture with Dutch telecom provider KPN, the company operates an ISP in Europe and is developing a fiber-optic network there. Qwest also has transmission capacity on transatlantic cables and is helping to construct a transpacific cable. The #4 US long-distance provider has agreed to merge with Baby Bell U S WEST. Founder Philip Anschutz owns about 38% of the company; BellSouth owns 10%.

Télécoms / Telecom

• U S West est un Baby Bell dont l'activité historique est le marché des communications locales,
• bien qu'il soit l'un des Baby Bell les moins actifs en dehors de son secteur traditionnel, l'opérateur a quand même essayé de sortir de son activité historique:
  • il a signé un accord avec l'opérateur longue distance Qwest pour utiliser ses 16.000 miles de fibres optiques afin de pouvoir fournir des services d'acheminement de données,
  • l'opérateur développe par ailleurs son propre réseau en fibre optique,
  • il comptait fournir des services longues distances, toujours en utilisant le réseau de Qwest, mais un juge fédéral lui a interdit.
• U S West devrait être racheté par Qwest pour un montant de 40 MM$, si toutefois la FCC ne bloque pas la fusion.

• U S West is a Baby Bell whose core business is local services,
• although it is one of the least active Baby Bells outside its historical business, the carrier tried to put a foot on other markets:
  • it struck a deal with long distance carrier Qwest in order to use its 16,000 miles of fiber optic network to provide data transfer services,
  • the carrier is in parralel laying its own fiber optic network,
  • it planned to provide some long distance services still through Qwest network, but a federal judge forbid the agreement.
• U S West should be bought by Qwest for a $40 billion deal, if however the FCC does not stops the merger.