Qwest loses 45,000 wireless customers, blames migration to Verizon Wireless: Transition becomes ‘churn situation’

Brand-switching appears to have tripped up Qwest Communications International Inc. – the carrier lost 45,000 of its 800,000 wireless customers in the third quarter and blamed the deficit on its recent migration to Verizon Wireless.
Qwest in July dropped its mobile virtual network operator relationship with Sprint Nextel Corp. in order to become an agent for Verizon Wireless. Qwest said the move – which included dropping Qwest-branded wireless service in favor of Verizon Wireless-branded offerings – would expand its service footprint and boost its finances.
Thus, the loss of customers may have come as a surprise to Qwest. Indeed, John Gonner, director of Qwest’s wireless product management, said in July that the transition “won’t be a churn situation.”
“[We’ll] keep customers with compelling calling plans and phones,” Gonner said in July.
A Qwest representative was not immediately available to comment on the customer losses.
Qwest is currently offering Verizon Wireless plans to customers, as well as the opportunity to combine Verizon Wireless packages with Qwest bundles through one bill. But Qwest’s former “one-number” service – which forwarded unanswered calls from a home phone to a cellphone – did not make it through the transition to Verizon Wireless, which may have contributed to the customer loss.
As for Verizon Wireless, the carrier added 2.1 million total customers during the third quarter, of which 700,000 arrived through third-party vendors. Verizon Wireless does not break out the sources of its third-party growth. Representatives from the nation’s No. 2 carrier declined to comment.
Interestingly, Qwest’s wireless department isn’t alone in its suffering. The company as a whole took a huge financial hit in the third quarter, posting a net income of $151 million – shockingly lower than its $2.1 billion in income during last year’s third quarter.
In an effort to cut costs, Qwest said it will fire around 1,200 employees before year’s end.