Qwest: Open to opportunities

CEO drives growth of telecommunications giant by embracing the unexpected.

By J.D. Mosley-Matchett -- Movers and Shakers, 6/15/2001

	AT A GLANCE
	Qwest Communications Denver, CO www.qwest.com 2000 revenue:  $18.9 billion 2000 net income: $7.37 billion* NYSE symbol: Q Share price: 39.80 (4/27/01) 52-week high: $66.87 52-week low: $30.00 *Before interest, taxes, depreciation and amortization

Joseph P Nacchio, chairman and CEO of Qwest Communications International, has always been willing to make the most of unexpected events. From his first engineering assignment at AT&T (won when he accidentally entered the wrong interview room) to his current leadership post at Qwest (offered just as he was about to accept the top position at another firm), Nacchio believes in being open to changes in the environment.

Rising thorough the ranks at AT&T, Nacchio ultimately became president of its Consumer Communications Service and helped shape the company’s brand identity while directing its long-distance profit centers. During his tenure, AT&T’s consumer long-distance business won the prestigious Malcolm Baldridge National Quality Award for Excellence.

Meanwhile, Qwest was launched in 1995 when a subsidiary of Southern Pacific Railroad, called SP Telecom, merged with Qwest Corp, a small Dallas-based digital microwave firm. The plan was to create a broadband network that could meet the future data-transmission demands of the fledgling Internet through the use of optical-networking technology.

Laid along rights of way controlled by Southern Pacific, the Qwest Macro Capacity Fiber Network now spans 104,000 miles and links 150 cities with data-communication rates reaching 10 gigabits/second. Yet the network, which is recognized as the largest in North America, is not merely a conduit for information streams. It also delivers an array of Internet-based applications and services.

Qwest Cyber Solutions is the largest enterprise application service provider (ASP) in the industry, offering complex Web hosting, ASP services, managed network services, and custom professional services. Qwest’s customer base includes 40 of the Fortune 50 companies, various government accounts, and an assortment of Internet firms that include AOL and Amazon.

	Joseph P Nacchio has grown Qwest into a giant that serves 30 million and anticipates revenues above $21 billion this year.

Since joining Qwest in 1997 and becoming CEO in 1999, Nacchio has grown the company into a telecommunications giant serving 30 million customers and anticipating revenues in excess of $21 billion this year. As a case in point, Nacchio masterminded last year’s acquisition of US West, a 120-year-old, Denver-based telecom giant that served 14 states throughout the western United States.

The union provided Qwest with key technologies including DSL services, advanced frame relay, the largest Web-based yellow pages in the US, PCS wireless communications, and a digital switching network.

Yet another element in the Qwest game plan is the development of key alliances with application powerhouses such as Microsoft and IBM. The company’s ultimate goal is to leapfrog its competitors and become the industry’s largest enterprise ASP.

Never satisfied with the status quo, Nacchio has turned his attention to the international arena and anticipates Qwest’s imminent leadership in global Internet communications. An alliance with the Dutch telecom company, KPN, is spearheading Qwest’s expanding presence in Europe. Meanwhile, the company’s new Asia-Pacific office and interests in the US-Japan Cable project have provided Qwest with a significant presence in the East.

In short, Nacchio is positioning his company to redefine global communications around the power and potential of the Internet. And if his past track record is any indication of future achievement, Qwest’s stakeholders should prepare themselves for a fast-paced journey to worldwide prominence.