After much searching, Qwest finds the right shade of lipstick for the pig

In quite the surprise announcement today, Qwest announced that its efforts to dress the company up for sale over the last decade have finally paid off. CenturyLink, the result of a merger between ILECs CenturyTel and Embarq, is buying the company in an all-stock transaction. This comes not even a year after the merger that created CenturyLink, one in which CenturyTel purchased Embarq.

What remains to be seen is if this will improve Qwest’s long-ailing fortunes and legendary reputation for horrible customer service. I used to be a customer of Sprint Local in Las Vegas before it was spun off into Embarq and was always impressed with the service quality. The only reason I discontinued service was because Vonage was offering a very compelling feature set at a  more attractive price. I don’t know how much of Embarq has rubbed off on CenturyTel (or even what CenturyTel’s reputation is), but any amount of it would help.

That said, I wonder if the new company will have the billions of dollars required to update badly-neglected infrastructure. It’s no secret that Qwest carries a very heavy debt load and hasn’t exactly been speedy with the rollout of ADSL2+ services. They also have no wireless or video revenues to cross-subsidize construction… and neither does CenturyLink. As land lines continue to death spiral and cable turns up the DOCSIS 3.0 heat, I’m left wondering how the new company will fare too much better than the old one.

Good luck, guys. You need as much of it as you can get.

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One Response to After much searching, Qwest finds the right shade of lipstick for the pig

  1. u235sentinel says:

    Or perhaps I’ll finally get that internet I bought when the NII taxes kicked in in 1994 🙂

    I checked, they seem to have a lot of cash plus this is an all stock trade. They are doubling their coverage and have a decent internet service (though they do have their share of problems I hear).

    I guess Qwest was up for a fire sale after all.

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