Qwest moves wireless biz to VZW: Qwest Wireless to disappear

Qwest Communications International Inc. is jumping wireless ship from its current mobile virtual network operator relationship with Sprint Nextel Corp. to reselling Verizon Wireless services. The move, expected to begin this summer, will see the end of the Qwest brand in wireless as the new offering will be a strict reselling of Verizon Wireless’ handsets and services.
Financial terms of the 5-year deal were not released, but Qwest executives noted during a conference call that the economics of the Verizon Wireless deal were “much, much better.” Qwest’s current deal with Sprint Nextel is set to expire during the first quarter of next year.
Qwest currently has about 800,000 wireless customers using Sprint Nextel’s CDMA network, though the service has stagnated since it launched in 2004. Qwest initially lost a couple hundred thousand customers when it shut off its network-controlled service, and has since slowly added customers.
The press release noted that the deal would provide Qwest customers with the ability to access Verizon Wireless’ handsets, smartphones and Research In Motion Ltd. BlackBerry devices as well as the carrier’s high-speed network. Qwest also said it was looking forward to Verizon Wireless’ next-generation network plans and that it planned to fully implement all of Verizon Wireless’ wireless services into its bundles.
Qwest’s current deal with Sprint Nextel does not allow Qwest to sell wireless services outside its 14-state wireline footprint thus limiting its ability to tap into larger enterprises and government agencies. Qwest’s current handset lineup includes devices that are also sold by Sprint Nextel as well as exclusive handsets, but all the devices are labled as Qwest as well as having Qwest branding in the software.
Qwest customers will be able to buy Verizon Wireless products and services via Qwest’s call centers, retail stores, kiosks and through Qwest’s Web site. The billing issue is not so clear cut as customers buying only wireless service from a Qwest outlet will receive their bill from Verizon Wireless, while a customer buying a bundle with the Verizon Wireless service will receive their bill from Qwest. Customer service will also be split along similar lines with bundled customers going through Qwest and then onto Verizon Wireless, while wireless-only customers will go straight to Verizon Wireless.
Qwest is also working through which services it intended to continue to support following the transition, noting that services such as one-number for both a wireline or wireless service would likely to continue to be supported.
Qwest’s management earlier this year said it was looking at different growth avenues for its wireless business having seen little growth as an MVNO using Sprint Nextel after selling off its limited wireless operations in 2004 to Verizon Wireless for $418 million.