Qwest Communications International Inc. reported a 16-percent drop in second-quarter wireless revenues from $153 million in 2003 to $128 million this year, despite what it claimed was an improvement in its wireless division, including a gain of 2,000 net subscribers that reversed its customer losses during the first three months of this year and a slight increase in average revenue per user from $43 last year to $44 this year.
Qwest attributed the subscriber growth to its recent launch of nationwide wireless services as part of a mobile virtual network operator agreement it signed with Sprint PCS last year and said it ended the second quarter of this year with 814,000 total subscribers compared with 954,000 customers at the end of the second quarter last year. Qwest also reported it is doubling the number of kiosks and stores it plans to open by the end of this year from its previously announced 34 outlets.
Qwest announced at the end of the second quarter that it had agreed to sell its PCS licenses and related wireless network assets to Verizon Wireless for $418 million in cash, and it expected the transactions to close by the end of this year or early next year following governmental approval and the transition of its customer base to Sprint PCS’ network.
