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February 27, 2008

Qwest in Talks with Verizon About Wireless Deal


Verizon (News - Alert) Wireless is in talks with Qwest Communications to revamp the way Qwest sells bundles of services, Verizon Communications confirmed today.


Verizon Chief Executive Ivan Seidenberg said his company, which owns Verizon Wireless in a joint venture with Vodafone Group, has held talks with Qwest (News - Alert) about a possible deal, according to report in The Wall Street Journal.

The move is likely a result of Qwest’s recent decline in sales of traditional phone lines and, unlike rivals Verizon and AT&T (News - Alert), does not have a wireless unit to compensate. Qwest said on Monday it is working on a new kind of wireless partnership because its current arrangement to resell Sprint (News - Alert) Nextel Corp services is inadequate.

The move could be very important for Qwest because wireless is an important part of its service bundle, which includes phone, Internet and television through an agreement with DirecTV (News - Alert) Group.

Qwest’s contract with Sprint expires in early 2009.

Verizon and Sprint both use the same wireless technology standard known as CDMA, which could make a possible transition easier for Qwest customers. AT&T and T-Mobile USA operate on GSM, which uses different communications technology.

Tim Gray is a Web Editor for TMCnet, covering news in the IP communications, call center and customer relationship management industries. To see more of his articles, please visit Tim Gray’s columnist page.
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