Stock Picks
Qwest on the frontier
Ari Meisel, WH '04
Issue date: 11/6/00 Section: Undergraduate
- Page 1 of 1
Qwest Communications International Inc. (NYSE:Q) just announced Qwest Voice Browsing. This is a new service that launched on November 1 and will allow users to call a number and receive personalized information about stocks, news, weather, sports scores, airline information and much more.
This is just one of the many markets in which Qwest has made a name for itself. Qwest is a fiber optics communications company offering Internet, data, multimedia, and voice over its network. The network covers 150 U.S. cities with its 25,500 miles of cable. With its acquisition of US West, a baby Bell, the company now serves over 29 million customers. In a joint venture with Dutch telecom company KPN, Qwest is developing a fiber optic network in Europe.
Fiber optic communication is a hot industry right now with a number of companies feverishly building their networks. Fiber optics allow for the transfer of information at light speeds along ultra-thin glass fibers. Fiber optic cables are smaller and lighter than conventional copper cables, yet they can transfer a much larger amount of information at higher speeds. They are immune to electromagnetic interference and are more secure because a tap on a fiber line is easily detectable. One of the most promising features of fiber optics is that they can carry data a much greater distance than conventional cables without any signal degradation, making them very cost effective. Because of their capacity, they are ideal for Internet communications, television transmission, and multiple telephone line management through a single cable. Just a few months ago, Bell Labs set a new speed test using fiber optics. They were able to attain a transfer rate of 3.28 terabytes per second. To put that into perspective, all Internet traffic throughout the entire world does not amount to 1 terabyte per second. Most companies on the fiber optic bandwagon are at present doing very well.
Qwest has been making deals left and right with various communications companies in order to increase its scope. The most recent was on October 31, when Qwest inked a deal with McLeodUSA to offer high-speed data and voice communications service to more local markets. The deal represents a three year revenue of $600 million.
Qwest has the muscle and the wallet. For the first three quarters of this year, revenue was up 16 percent to nearly $14 billion and net income rose nearly 60 percent to $725 million. I have good feelings about the success of this company, and my recommendation is to get in now before it gets too hot. Aside from minor dips, the price can only go up as its network grows.
This is just one of the many markets in which Qwest has made a name for itself. Qwest is a fiber optics communications company offering Internet, data, multimedia, and voice over its network. The network covers 150 U.S. cities with its 25,500 miles of cable. With its acquisition of US West, a baby Bell, the company now serves over 29 million customers. In a joint venture with Dutch telecom company KPN, Qwest is developing a fiber optic network in Europe.
Fiber optic communication is a hot industry right now with a number of companies feverishly building their networks. Fiber optics allow for the transfer of information at light speeds along ultra-thin glass fibers. Fiber optic cables are smaller and lighter than conventional copper cables, yet they can transfer a much larger amount of information at higher speeds. They are immune to electromagnetic interference and are more secure because a tap on a fiber line is easily detectable. One of the most promising features of fiber optics is that they can carry data a much greater distance than conventional cables without any signal degradation, making them very cost effective. Because of their capacity, they are ideal for Internet communications, television transmission, and multiple telephone line management through a single cable. Just a few months ago, Bell Labs set a new speed test using fiber optics. They were able to attain a transfer rate of 3.28 terabytes per second. To put that into perspective, all Internet traffic throughout the entire world does not amount to 1 terabyte per second. Most companies on the fiber optic bandwagon are at present doing very well.
Qwest has been making deals left and right with various communications companies in order to increase its scope. The most recent was on October 31, when Qwest inked a deal with McLeodUSA to offer high-speed data and voice communications service to more local markets. The deal represents a three year revenue of $600 million.
Qwest has the muscle and the wallet. For the first three quarters of this year, revenue was up 16 percent to nearly $14 billion and net income rose nearly 60 percent to $725 million. I have good feelings about the success of this company, and my recommendation is to get in now before it gets too hot. Aside from minor dips, the price can only go up as its network grows.