Qwest Communications International said Wednesday that it is on track to complete construction of its 18,000-mile fiber-optic telecommunications network by the middle of next year.
"I feel very comfortable saying that we will have this network done on time," said CEO Joseph Nacchio, speaking to institutional investors at a NationsBanc Montgomery Securities conference in San Francisco.
With its network complete, Qwest (QWST) will be a quantum leap ahead of competitors like Level 3 Communications (LVLT), which is just beginning to lay pure fiber networks, Nacchio said.
"If we were even modestly competent executives, we'd do well."
Qwest is building an advanced fiber-optic telecommunications network, based on Internet protocol technology, to provide inexpensive long-distance phone calls and high-speed data services. Qwest's acquisition of LCI Communications last fall made it the fourth-largest long-distance carrier in the United States.
Nacchio forecast strong demand for the network's services, estimating that Qwest will generate around US$3.5 billion in revenue in 1999, a 20 percent leap over the $3 billion in revenue he predicts for 1998. Those estimates are in line with Wall Street's expectations.
Nacchio also downplayed suggestions that the recent spate of network construction efforts by the Denver-based company, and others, will create a glut of available capacity for advanced telecommunications services, thereby driving down profit margins across the industry.
"The explosive demand driven by the Internet phenomenon ensures there won't be a glut of bandwidth," said Nacchio. "If you have high bandwidth, you design your whole [business] ecosystems differently."
