Qwest facts for kids
Logo used from 1996 to 2011
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Qwest’s headquarters in Denver, Colorado
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| Subsidiary | |
| Industry | Telecommunications |
| Fate | Merged with CenturyLink |
| Predecessor | US West |
| Founded | 1996 |
| Founder | Phillip Anschutz |
| Defunct | August 1, 2011 |
| Headquarters |
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U.S.
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Area served
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International |
| Services | Telephone Internet Television |
| Revenue |  $13.778 billion (2007) |
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Operating income
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 $1.730 billion (2007) |
| $2.917 billion (2007) |
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| Total assets | $22.532 billion (2007) |
| Total equity | $563 million (2007) |
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Number of employees
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30,000 (2010) |
| Parent | Lumen Technologies (2011–present) |
| Subsidiaries | Qwest Corporation |
Qwest Communications International, Inc. was a large company in the United States that provided phone and internet services. They offered local phone service in 14 states across the western and central U.S. These states included Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oregon, South Dakota, Texas, Utah, Washington, and Wyoming.
On April 22, 2010, another company called CenturyLink announced it would buy Qwest. The deal was completed on April 1, 2011. By August 2011, Qwest started operating under the CenturyLink name.
Qwest offered many services, like phone calls, internet data, and digital television in some areas. They worked in three main parts: Wireline Services, Wireless Services, and Other Services. Wireline Services provided local and long-distance phone services. It also offered internet (DSL) to homes, businesses, and other companies.
For wireless services, Qwest partnered with Verizon Wireless. They also worked with DirecTV to give customers digital TV. In some cities like Phoenix and Denver, Qwest offered its own TV service called Qwest Choice TV. This service used IPTV over DSL internet. However, Qwest stopped offering this service to new customers in May 2008 and fully retired it in October 2008. After that, DirecTV was the only TV service Qwest provided.
Qwest also offered long-distance services and high-speed internet globally. The company sold its services to small businesses, government groups, and schools. They used direct sales, telemarketing, their website, and partnerships. In 2005, Qwest had 98 retail stores in 14 states. Qwest's main office was in Denver, Colorado at 1801 California Street. This building was the second tallest in Denver. Many Qwest employees were part of unions like the Communications Workers of America. Qwest also had software development centers in India.
Contents
How Qwest Started and Grew
Building the Company
Philip Anschutz started Qwest in 1996. He owned a railroad company called Southern Pacific Transportation Company. He created a part of his company called Southern Pacific Telecommunications Company. This new company started putting in the first all-digital, fiber-optic cables along the railroad tracks. These cables connected to central points to offer fast data services to businesses.
In 1997, Southern Pacific Transportation Company merged with Union Pacific. Philip Anschutz had a special agreement. He was laying fiber for other companies along the railway lines. He used this chance to lay his own fiber too. This fiber network stayed separate from the railroad merger. In 1995, SP Telecom moved to Denver. It bought a company called Qwest Communications Corp. and took its name. The first Qwest headquarters was at 555 17th Street.
Qwest Communications grew quickly. In 1997, it bought an internet company called SuperNet. In 1998, it bought LCI, which was a company that offered cheap long-distance calls. Also in 1998, Qwest bought Icon CMT, a company that hosted websites. These purchases helped Qwest become a big provider of high-speed data for businesses. It also quickly gained many home and business customers for long-distance calls.
Joining with US West
On June 30, 2000, Qwest merged with a large phone company called "Baby Bell" US West. Philip Anschutz owned a big part of the new company. Unlike other mergers, US WEST completely joined Qwest. All of US WEST's smaller companies became part of Qwest.
As part of the merger, Qwest had to sell its long-distance services in the 14 states where it offered local phone service. These services were sold to a company called Touch America. Later, in 2003, Qwest bought Touch America back. This ended some disagreements between the two companies.
Selling Directory Services
In 2002, Qwest decided to sell its phone book business, QwestDex. It sold QwestDex to other companies for $7 billion. This sale helped Qwest get money. The company needed cash because it had a lot of debt. The new company created from this sale was named Dex Media in 2004.
Working with Other Companies
Qwest Communications also teamed up with other big communication companies.
In Europe, Qwest worked with a Dutch company called KPN. They created a company called KPNQwest in 1998. This company offered data and hosting services across Europe. KPNQwest went public in 1999, but it later went out of business in 2002.
In the U.S., Qwest partnered with AT&T and Verizon to create Movearoo.com. This website started in 2008. It was designed to help customers who were moving find home service providers in their new area.
Challenges Qwest Faced
Customer Issues
Qwest faced complaints from customers. One big issue was that the company was accused of switching customers' long-distance phone service to Qwest without their permission. This illegal practice is called slamming. In July 2000, Qwest paid a $1.5 million fine to the Federal Communications Commission because of these complaints. In April 2001, they paid another fine in Pennsylvania. To fix this, Qwest made all its sales employees sign a promise that slamming was not allowed. Breaking this rule meant they could be fired.
Company Problems and Legal Issues
Qwest also had problems with how it reported its money. The company was fined $250 million by the U.S. Securities and Exchange Commission (SEC). This was because of issues with its financial records. Some deals with Enron's broadband division were questioned. These deals might have helped Enron hide its losses.
In 2005, the SEC filed a lawsuit against former Qwest CEO Joseph Nacchio and others. They were accused of fraud. Separately, Nacchio was found guilty of insider trading in 2007. This means he used secret company information to make money from stock sales. However, in 2011, a judge rejected all SEC claims against another former Qwest leader, Afshin Mohebbi.
Qwest's slogan from 1998 to 2002 was "Ride The Light." This slogan was meant to show that the company was very modern. In 2002, a new CEO, Richard C. Notebaert, started a new campaign called "Spirit of Service." This campaign focused on making customers happy. This slogan was used until 2008.
In 2004, Qwest was the first major phone company in the U.S. to offer Standalone DSL. This meant customers could get DSL Internet service without needing a traditional landline phone service.
Refusing Government Requests
In May 2006, a newspaper reported that several big phone companies had given phone call records to the United States National Security Agency (NSA). This happened after September 11, 2001. The NSA used this information to create a huge database of calls. Qwest was reportedly the only company that refused to give this information. The NSA warned Qwest that refusing might cost them future government contracts. Many people who did not like the NSA program praised Qwest for its decision.
In a court case, a U.S. judge ruled in August 2006 that the government's program was against the law. The judge ordered it to stop. However, this decision was later overturned by a higher court.
Former Qwest CEO Joseph Nacchio claimed that the NSA asked Qwest to join its program even before September 11, 2001. He said the NSA canceled a valuable contract with Qwest because the company refused to participate. In 2009, Nacchio went to prison for his insider trading conviction.
A website called "Thank you Qwest dot Org" was created to support Qwest's decision. This website was mentioned by news channels and newspapers.
Joining with CenturyLink
On April 22, 2010, CenturyLink announced it would buy Qwest. CenturyLink offered 0.1664 shares of its own stock for each share of Qwest stock. After the merger, CenturyLink shareholders owned 50.5% of the new company. Qwest shareholders owned the other 49.5%. The deal was valued at $22.4 billion. This included $11.8 billion of Qwest's debt. Qwest officially started doing business as CenturyLink on August 8, 2011.
How Qwest Was Organized
Qwest Communications International, Inc. was the main company. It owned many smaller companies. Here are some of the most important ones:
- Qwest Corporation was a local phone company. It was part of the old AT&T Bell Operating System. Qwest Corporation provided local phone service in the 14 states that used to be served by U S WEST. It also helped with things like money, human resources, and legal services for other Qwest companies.
- Qwest L D Corp. was a company that offered long-distance calling services within the areas Qwest Corporation served.
- Qwest Communications Company, LLC was another Qwest company. It could offer local services but mainly provided long-distance phone and data services. This company was originally founded in 1966 as Southern Pacific Telecommunications Company. Qwest Communications made a deal with CSX to use its railroad lines to lay fiber-optic cables. This is why the main company, Qwest Communications International, used the slogan Ride the Light.
