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 | |
| Traded as | NYSE: Q |
| Industry | Telecommunications |
| Fate | Merged with CenturyLink |
| Predecessor | US West |
| Founded | 1996 |
| Founder | Phillip Anschutz |
| Defunct | August 1, 2011 |
| Headquarters | 1801 California Street,
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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 big phone and internet company in the United States. It offered local phone service in 14 states across the western and midwestern 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 two companies officially joined together on April 1, 2011. By August 2011, Qwest started operating under the CenturyLink name.
Qwest provided many services, like phone calls, internet data, and digital television in some areas. The company worked in different parts: Wireline Services, Wireless Services, and Other Services. Wireline Services offered local and long-distance phone services. It also provided internet (DSL) to homes, businesses, and other companies.
Qwest's Wireless Services were offered through a partnership with Verizon Wireless. For TV, Qwest teamed up with DirecTV to give digital television service to its customers. In some cities like Phoenix and Denver, Qwest also offered its own TV service called Qwest Choice TV. This service used IPTV over DSL. However, Q Qwest Choice TV was stopped in October 2008. After that, DirecTV became the only TV service Qwest provided.
Qwest also offered long-distance services and high-speed internet to customers around the world. The company sold its services to small businesses, government groups, and schools. They used different ways to sell, like direct sales, phone calls, their website, and working with other companies. Qwest had its main office in Denver, Colorado, in a very tall building. Many of Qwest's employees were part of labor unions. Qwest also had software development centers in India.
Contents
Qwest's History
How Qwest Started
Qwest was started in 1996 by a person named Philip Anschutz. It began in a unique way. Anschutz owned a railroad company at the time. He created a new company called Southern Pacific Telecommunications Company. This new company started putting in special fiber-optic cables along the railroad tracks. These cables were used to connect businesses with fast internet and data services.
In 1997, Anschutz's railroad company joined with another company called Union Pacific. But the telecom part of the business stayed separate. This telecom company was then renamed Qwest. It became a public company in June 1997, meaning people could buy shares in it.
Qwest grew very quickly. It bought an internet company called SuperNet in 1997. Then, in 1998, it bought LCI, which was a company that offered cheap long-distance calls. In the same year, Qwest also bought Icon CMT, a web hosting company, and EUNet International Ltd. in Europe. These purchases helped Qwest become a major provider of high-speed data and a fast-growing company for residential and business long-distance calls.
Joining with US West
On June 30, 2000, Qwest joined with a large phone company called US West. This was a big deal, costing about $48 billion. Philip Anschutz owned a large part of the new combined company. Unlike other mergers, US West was completely taken over by Qwest. All of US West's smaller companies became part of Qwest.
As part of this 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 helped end disagreements between the two companies.
Selling Directory Services
In 2002, Qwest decided to sell its directory business, called QwestDex. This business made phone books and provided directory assistance. It was sold to other companies for $7 billion. This sale helped Qwest get a lot of money. The money was important because Qwest had a lot of debt at the time. The company that resulted from this sale was named Dex Media in 2004.
Working with Other Companies
Qwest Communications also worked with other big communication companies over the years.
In Europe, Qwest partnered with a Dutch phone company called KPN. Together, they created a company called KPNQwest in November 1998. This company offered data communication and hosting services across Europe. KPNQwest became a public company in 1999 but later went out of business in 2002.
In the U.S., Qwest worked with AT&T and Verizon to create Movearoo.com. This website was launched in July 2008. It was designed to help customers who were moving find home service providers available in their new area.
Challenges Qwest Faced
Customer Issues
One of the main complaints about Qwest was that it sometimes switched customers' long-distance phone service without their permission. This illegal practice is known as slamming. In July 2000, Qwest paid a fine of $1.5 million to the Federal Communications Commission to settle these complaints. In April 2001, they paid another fine in Pennsylvania for similar issues. As part of these agreements, Qwest made its sales employees promise not to switch customers without permission.
Financial Concerns
Qwest also faced issues with its financial reporting. The company was fined $250 million by the U.S. Securities and Exchange Commission (SEC). This was due to problems with how it reported its money. Some of these issues involved deals with another company called Enron. In 2005, some former leaders of Qwest were accused of fraud in a lawsuit.
Saying No to Surveillance Requests
In May 2006, a newspaper reported that several large phone companies had given phone call records to the United States National Security Agency (NSA) after September 11, 2001. This data was used to create a large database of phone calls. Qwest was reportedly the only major company that refused to hand over its customer data. This decision earned them praise from people who were against the NSA's program.
Former Qwest CEO Joseph Nacchio stated that the NSA had asked Qwest to join its wiretapping program even before September 11, 2001. He claimed that Qwest lost a valuable contract with the government because it refused to participate in the program.
Joining with CenturyLink
On April 22, 2010, CenturyLink announced its plan to buy Qwest. CenturyLink offered a certain number of its own shares for each share of Qwest stock. After the merger, CenturyLink shareholders owned a little more than half of the new company. Qwest shareholders owned the rest. The deal was valued at about $22.4 billion. This included taking on Qwest's existing debt. Qwest officially started operating as CenturyLink on August 8, 2011.
How Qwest Was Organized
Qwest Communications International, Inc. was the main company that owned many other smaller companies. Here are some of the most important ones:
- Qwest Corporation was a local phone company. It served the 14 states where the old US West company used to provide local phone service. Qwest Corporation also handled many important tasks for all the Qwest companies, like managing money, human resources, and legal matters.
- Qwest L D Corp. was a company that provided long-distance calling services within the areas served by Qwest Corporation.
- Qwest Communications Company, LLC was another part of Qwest that offered long-distance phone and data services. This was the original company founded in 1996 before the US West merger. Qwest Communications made a deal with CSX (a railroad company) to use its rail lines. This allowed Qwest to build its fiber-optic network along the tracks. Because of this, Qwest Communications International used the slogan Ride the Light.
Companies That Are No Longer Active
- Malheur Home Telephone Company: This company, also known as Malheur Bell, joined with Qwest Corporation in December 2009.
- Qwest Interprise America: This company merged into another Qwest entity in 2007.
- Qwest Services Corporation: This company used to provide administrative services for Qwest, but Qwest Corporation now handles those tasks.
- Qwest Cyber.Solutions: This company helped other businesses by hosting and managing complex software programs in the late 1990s and early 2000s.
See also
- Qwest Wireless
