DENVER, and OVERLAND PARK, Kansas, August 4, 2003 ? Qwest Communications International Inc. (NYSE: Q), and Sprint (NYSE: FON, PCS), today announced they have signed a wholesale agreement that allows Qwest to provide nationwide wireless voice and data services to its new and existing consumers throughout its 14-state local service region, and to its business customers across the United States, using the enhanced Sprint nationwide wireless network infrastructure.
Under terms of the agreement, Qwest will offer PCS Vision (SM) from Sprint, the company?s advanced wireless data service. The contract also enables Qwest to continue to provide sales and service support to all Qwest wireless customers, including the promotion and sale of handsets, price plans and data services, and customer service - including billing and account management. The agreement also states that Sprint will serve as exclusive third-party provider of wireless services to Qwest.
"This agreement allows us to provide customers with nationwide wireless service and the convenience of Qwest?s integrated landline to wireless features," said Richard C. Notebaert, chairman and CEO of Qwest Communications. ?In addition, Sprint?s cutting edge wireless data applications make our comprehensive package of telecommunications services one of the most compelling combinations available.?
As part of the agreement, Qwest and Sprint will jointly work on a plan to transition customers to the enhanced Sprint Nationwide PCS Network. By next year, the companies expect most of Qwest?s existing wireless customers ? as well as all new Qwest customers- to participate in the transition.
?This is a win-win opportunity for Sprint and Qwest,? said Len Lauer, president of the PCS Division of Sprint. ?With this agreement, Sprint will gain a new sales channel for our PCS Vision services, and Qwest can offer its customers access to our PCS network, the most complete all-digital wireless network in the nation.?
Early next year, Qwest will introduce calling plans that incorporate nationwide coverage. In addition, Qwest will contact existing wireless customers to ensure they are on a calling plan that best meets their wireless needs and notify them regarding their migration to the Sprint network.
?This agreement is positive for both Qwest and Sprint,? said Roger Entner, program manager for the wireless/mobile services practice at The Yankee Group. ?It gives Qwest the ability to integrate national wireless service into its product offering without an incremental capital investment, and it opens the door for Sprint to market its PCS Vision services to a wider audience through this new sales channel.?
In addition to the option of national coverage, Qwest customers will still benefit from the following Qwest features:
One Number Service. Customers can use their home or office number as their wireless number - so they can stay connected even when they are on the go. When activated, calls automatically ring to a customer?s wireless phone first. The feature can be turned off with a few key strokes, allowing customers to choose where they receive their calls.
Home/Office Link. Allows unanswered calls to a Qwest wireless phone to ring through to the customers home or business, so they never miss an important call.
PCS Vision from Sprint includes services that allow customers to take and receive pictures from select PCS Phones; browse the Internet at speeds faster than most dial-up connections; check e-mail; watch clips and stream audio for news and music; download polyphonic, animated and voice ringers, as well as full-color, graphically-rich games and screen savers, all on the enhanced Sprint Nationwide PCS Network. Sprint recently announced that it has 2.1 million PCS Vision customers through the end of the second quarter of 2003, leading the industry in the use of advanced data services.
B-Roll will be available for broadcasters at http://www.thenewsmarket.com/qwest on August 4, after 6 a.m. EDT.
Qwest Communications International Inc. (NYSE: Q) is a leading provider of voice, video and data services to more than 25 million customers. The company?s 50,000 employees are committed to the ?Spirit of Service? and providing world-class services that exceed customers? expectations for quality, value and reliability. For more information, please visit the Qwest Web site at www.qwest.com.
Sprint is a global integrated communications provider serving more than 26 million customers in over 100 countries. With approximately 70,000 employees worldwide and nearly $27 billion in annual revenues, Sprint is widely recognized for developing, engineering and deploying state-of-the-art network technologies, including the United States' first nationwide all-digital, fiber-optic network and an award-winning Tier 1 Internet backbone. Sprint provides local voice and data services in 18 states and operates the largest 100-percent digital, nationwide PCS wireless network in the United States. For more information, visit www.sprint.com.
This release may contain projections and other forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. Readers are referred to the documents filed by us with the Securities and Exchange Commission, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements, including but not limited to: unanticipated delays in completing the process of our restatement of historical financial statements and related audits; the duration and extent of the current economic downturn in our 14-state local service area, including its effect on our customers and suppliers; the effects of our anticipated restatement of historical financial statements including delays in or restrictions on our ability to access the capital markets or other adverse effects to our business and financial position; our substantial indebtedness, and our inability to complete any efforts to de-lever our balance sheet through asset sales or other transactions; any adverse outcome of the SEC's current investigation into our accounting policies, practices and procedures and certain transactions; any adverse outcome of the current investigation by the U.S. Attorney's office in Denver into certain matters relating to us; adverse results of increased review and scrutiny by Congress, regulatory authorities, media and others (including any internal analyses) of financial reporting issues and practices or otherwise; the failure of our chief executive and chief financial officers to provide certain certifications relating to certain public filings; delays in making required public filings with the SEC; rapid and significant changes in technology and markets; any adverse developments in commercial disputes or legal proceedings, including any adverse outcome of current or future legal proceedings related to matters that are the subject of governmental investigations, and, to the extent not covered by insurance, if any, our inability to satisfy any resulting obligations from funds available to us, if any; our future ability to provide interLATA services within our 14-state local service area; potential fluctuations in quarterly results; volatility of our stock price; intense competition in the markets in which we compete, including the likelihood of certain of our competitors emerging from bankruptcy court protection or otherwise reorganizing their capital structure and competing effectively against us; changes in demand for our products and services; dependence on new product development and acceleration of the deployment of advanced new services, such as broadband data, wireless and video services, which could require substantial expenditure of financial and other resources in excess of contemplated levels; higher than anticipated employee levels, capital expenditures and operating expenses; adverse changes in the regulatory or legislative environment affecting our business; and changes in the outcome of future events from the assumed outcome included in our significant accounting policies.
The information contained in this release is a statement of Qwest's present intention, belief or expectation and is based upon, among other things, the existing regulatory environment, industry conditions, market conditions and prices, the economy in general and Qwest's assumptions. Qwest may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in Qwest's assumptions or otherwise. The cautionary statements contained or referred to in this release should be considered in connection with any subsequent written or oral forward-looking statements that Qwest or persons acting on its behalf may issue. This release may include analysts' estimates and other information prepared by third parties for which Qwest assumes no responsibility.
Qwest undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
By including any information in this release, Qwest does not necessarily acknowledge that disclosure of such information is required by applicable law or that the information is material.
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This press release includes certain estimates, projections and other forward-looking statements. Future performance cannot be ensured. Actual results may differ materially from those in the forward-looking statements. Some factors that could cause actual results to differ include: extent and duration of the current economic downturn; the effects of vigorous competition in the markets in which Sprint operates; the costs and business risks associated with providing new services and entering new markets necessary to provide nationwide or global services; adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations; the ability of the PCS Group to continue to grow a significant market presence; the ability of the PCS Group to improve its profitability and reduce its cash requirements; the effects of mergers and consolidations within the telecommunications industry and unexpected announcements or developments from others in the telecommunications industry; the uncertainties related to the outcome of bankruptcies of others within the telecommunication industry; the uncertainties related to Sprint?s strategic investments; the impact of any unusual items resulting from ongoing evaluations of Sprint's business strategies; the impact of new technologies on Sprint?s business; unexpected results of litigation filed against Sprint; the possibility of one or more of the markets in which Sprint competes being impacted by changes in political or other factors such as monetary policy, legal and regulatory changes, including the impact of the Telecommunications Act of 1996 (Telecom Act), or other external factors over which Sprint has no control; and other risks referenced from time to time in Sprint?s filings with the Securities and Exchange Commission (SEC).
The words "estimate," ?project,? ?intend,? ?expect,? ?believe? and similar expressions are intended to identify forward-looking statements. You should not place undue reliance on forward-looking statements, which speak only as of the date of this press release. Sprint is not obligated to publicly release any revisions to forward-looking statements to reflect events after the date of this press release or unforeseen events. Sprint provides a detailed discussion of risk factors in periodic SEC filings and you are encouraged to review these filings.