Qwest Communications – the voice, data services, and digital television service provider said Tuesday that its earnings for September-December 2009 quarter fell 39 per cent as traditional fixed line services becomes relics of the bygone era and more and more people switch to new age cell phones. The Denver Colorado-based company reported a net income of $108 million, down from $177 million, or 10 cents, when compared to same period of the previous year. Revenue also dropped 9.7 per cent to $2.99 billion.
The company listed unemployment, a poor business climate and a weak housing market (especially, in the West region) as the reasons for putting up a poor show. The company responded with a series of job cuts, decreasing its work force by 8.5 percent last year, or roughly 2,800 positions.
Unlike other large operators, Qwest doesn’t own wireless business and is looking to upgrade its fiber-optic business to offset the decline of its fixed line business. Landlines for small businesses and large businesses fell more than 12 per cent to 6.8 million and by 9 percent to 2.4 million, respectively.