Qwest Communications International Inc. reported a 13.2-percent drop in wireless segment revenues during the third quarter from $152 million in 2003 to $132 million this year. The company, which recently began offering nationwide wireless services using Sprint PCS’ network through a mobile virtual network operator agreement, noted that it incurred $16 million in wireless start-up costs during the quarter associated with the launch of its nationwide service.
Total wireless subscribers dropped 4.4 percent during the quarter to 778,000 customers, which Qwest attributed to increased churn associated with the migration to Sprint PCS’ network. The company added that it is beginning to see stronger customer demand from recently launched data services and features, and it expects the customer transition to Sprint PCS’ network to be completed by the first quarter of next year. Qwest also noted it plans to launch additional data features, including push-to-talk and video-mail services, during the fourth quarter of this year.
Despite the drop in wireless revenues, average revenue per user results increased 1 percent from $44 during the third quarter of 2003 to $45 this year.
Qwest also reported that the $418 million sale of its wireless assets to Verizon Wireless, which was announced earlier this year and included both wireless spectrum and infrastructure, was set to close early next year.
