Summary
If it were any other carrier I would flat out disagree with the statement that Fiber To The Home was not in favor of the carrier.
Analysis
Carriers like Qwest, with vast tracks of unpopulated territory and low subscriber density per square mile in many areas, cannot afford the expense of laying fiber all to the home. It is simple math.
A wholesale model is appropriate for Qwest. Given the growth of data and wireless, the notion of selling fiber backhaul makes perfect sense. Not much more to say except I agree with the Qwest team.
Even given the somewhat conservative landline data and wireless traffic growth trends, Qwest’s network approach stands a very good chance of helping generate substantive revenue for Qwest. Now imagine, network sharing.
I believe network sharing will become commonplace in the public telecom space and I believe Qwest will profit greatly from it.
P.J. Louis consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
