DENVER, February 24, 1999
- Qwest Communications International Inc. today announced that it is expanding its end-to-end connectivity for local service to large and multi-location business in key metropolitan U.S. markets. The company has completed metropolitan area networks in 10 major cities and is in the process of completing another nine in other major markets by the end of the year.
These networks would allow large businesses, such as Microsoft and Boeing in Seattle, to directly connect to the Qwest network and eliminate the access charges that are incurred when using connectivity from local exchange carriers.
The 10 cities include Chw York, Philadelphia, Sacramento, San Jose, Seattle and Washington, DC. The nine cities that are still in the process of being completed are Albany, Austin, Baltimore, Houston, Indianapolis, Los Angeles, San Antonio, Newark and White Plains, NY. Qwest said that it expects to announce a more comprehensive plan for local connectivity by mid-year.
?Qwest believes that it is important to offer customers broadband connectivity on an end-to-end basis,? said Joseph P. Nacchio, Qwest?s chairman and CEO. ?With this connectivity our customers will have the necessary bandwidth to cost-effectively run multimedid services.?
These metro area networks compliment Qwest?s previously announced agreement with Covad Communications Group, Inc., which provides Qwest with digital-subscriber line connectivity in 22 metropolitan markets.
Qwest said that it remains on schedule to complete its previously announced 18,500-mile nationwide network by mid-year. In addition, Qwest announced it will construct an additional 315 miles connecting Memphis to Tulsa, bringing its total U.S. fiber optic network to 18,815 miles. This new section will be completed by the end of the year.
Qwest said ?it is comfortable? with analyst expectations for 1999 and 2000. The estimates include 1999 services revenues of approximately $3.4 to $3.5 billion; earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $750 million; services EBITDA in excess of $650 million; and capital expenditures of $1.4 billion. Estimates for 2000 services revenues are approximately $4.5 to $4.6 billion, EBITDA of approximately $1.1 billion and capital expenditures of $1.0 to $1.2 billion.
The capital expenditures and results of operations discussed above may be revised to reflect the company?s comprehensive local connectivity plans that will be announced by mid-year.
Qwest Communications International Inc. (Nasdaq: QWST) is a leader in reliable and secure broadband Internet-based data, voice and image communications for businesses and consumers. Headquartered in Denver, Qwest has more than 8,000 employees and 80 sales offices in North America, Europe and Mexico. The Qwest Macro Capacity (SM) Fiber Network, designed with the newest optical networking, will span more than 18,500 route miles in the United States when it is completed by mid-1999. An additional 315 miles by the end of the year. In addition, Qwest and KPN, the Dutch telecommunications company, are forming a venture to build and operate a high-capacity European fiber optic, Internet Protocol-based network that has 2,100 miles and will span 9,100 miles when it is completed in 2001. Qwest also has nearly completed a 1,400-mile network in Mexico.
For more information, please visit the Qwest web site at www.qwest.com.
This release may contain 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 Qwest with the SEC, 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 potential fluctuations in quarterly results, dependence on new product development, rapid technological and market change, failure to complete the network on schedule and on budget, financial risk management and future growth subject to risks, Qwest?s ability to achieve Year 2000 compliance, adverse changes in the regulatory or legislative environment, and satisfactory negotiation and execution of definitive documentation. 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.
The Qwest logo is a registered trademark of Qwest Communications International Inc. in the U.S. and certain other countries.&llt;table width="550" cellspacing="0" cellpadding="5" border="0" align="center">
Qwest Media Contact