DENVER-In response to aggressive moves made by its competitors, U S West Inc. announced it
is committed to spending an additional $300 million in 1999 to support earlier deployment of network enhancements,
eliminate bottlenecks because of increasing data traffic and to step-up e-commerce efforts to develop new channels for
the business and reduce long-term operating costs.
The decision follows the announcement that AT&T plans to
offer local service in Denver, Portland, Ore., Salt Lake City and Seattle-four of U S West’s major
markets.
“When the country’s largest long-distance provider, largest competitive local exchange carrier,
largest wireless provider, and now, largest cable television provider-AT&T-announces it is taking you on … you need
to make every effort to be the very best at meeting and exceeding customer needs with differentiated products and
services,” said Sol Trujillo, U S West president and chief executive officer.
According to Al Spies, U S West’s
chief financial officer, the additional spending will cause a reduction in the company’s 1999 earnings estimates.
Previously, the company had committed to achieving 12- to 14-percent earnings per share growth during the
year.
“I expect our earnings will still be in the double digits for 1999,” said Spies. “But they will
be lower than our previous guidance, more likely the earnings growth will be around 10 percent.”
