Sunday, November 2, 2008

1,200 People on a New Qwest

Qwest has decided to reduce its employee base by 1,200 people as the economy is starting to actually show recession with the long awaited negative GDP reading recently.

This time is probably not good for landline operators. When households go over their monthly budget and look at recurring expenses that are easily eliminated this time the household landline phone may go in favor of keeping the primary contact number as cell phone. With some good family plans and a little price competition the major carriers of those wireless networks can likely further enhance this decision in the midst of the economic doldrums in the new frugality.

Their wireless MVNO model is mainly to sell a triple-play type of product to existing landline customers. Without those customers to market to and with the cost disadvantages of being an MVNO it may be a challenging recession for them to weather.

Qwest is headquartered in Denver, CO.

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