EXHIBIT 99.1
Press release dated February 26, 2001.
RIDE THE LIGHT NEWS
QWEST
[LOGO OMITTED]
QWEST COMMUNICATIONS CEO NACCHIO STRESSES SUCCESS IN CUSTOMER SERVICE,
RE-ENTERING LONG DISTANCE BUSINESS IN WESTERN STATES
IN KEYNOTE REMARKS AT NARUC CONFERENCE
QWEST ALSO RECONFIRMS 2001 REVENUE AND EBITDA TARGETS; REPORTS STRONG SALES OF
HIGH-TECH INTERNET SERVICES IN JANUARY
WASHINGTON, D.C., FEBRUARY 26, 2001 -- Qwest Communications International Inc.
(NYSE: Q), the broadband Internet communications company, has achieved
"significant and sustainable" service improvements and has moved quickly toward
re-entering the long distance business in 14 Western states, Qwest Chairman and
CEO Joseph P. Nacchio today told the National Association of Regulatory Utility
Commissioners.
Nacchio delivered a keynote address this morning to the winter conference of
NARUC in Washington, D.C. NARUC is the nation's largest organization of state
regulatory officials.
At an investor conference later in the morning, Nacchio is scheduled to say
Qwest sales of high technology, Internet-based services in January were strong,
keeping the company on track to meet its 2001 target of $21.3 to $21.7 billion
for revenue and between $8.5 to $8.7 billion for earnings before interest,
taxes, depreciation and amortization (EBITDA). Qwest also expects revenue for
the first quarter of 2001 to grow 11.5 percent to 12.5 percent over the pro
forma normalized revenue of the first quarter of 2000.
At the NARUC conference, Nacchio said Qwest has made service improvement its top
priority since acquiring U S WEST eight months ago.
"We have made significant and sustainable progress improving service in key
areas for all customers in every state...the best results in six years," Nacchio
said. Among other notable improvements, over the last year Qwest has reduced by
more than half the number of orders for new telephone lines that are not
installed on time. Qwest also has reduced customer complaints to public utility
commissions by 15 percent.
Nacchio said that re-entering the long-distance market in its 14 state local
service area was the company's second principal priority. Qwest must demonstrate
to state and federal regulators that its local service area is open to
7
competition before Qwest will receive approval to offer long-distance services
in its local service area. Nacchio said that Qwest is moving quickly toward
re-entering the long distance business because it had taken major steps to open
up its local service area network to competition and because the company was
working effectively with state regulators in the region to demonstrate that the
market is competitive.
Nacchio referred to several major steps that had opened the market to
competition. He said Qwest had entered into major wholesale agreements with
McLeodUSA and Eschelon Telecom, Inc., two of the largest independent competitors
for communications services in Qwest's local service area. Qwest also has signed
the industry's first permanent line sharing agreements so competitors may
provide high-speed data connections over Qwest phone lines, even to customers
who buy their local phone service from Qwest.
Nacchio also pointed to markedly improved working relationships with state
public utility commissions in its local service area. Qwest has dropped almost
40 lawsuits against commissions that were pending when it acquired U.S. West.
Last week Qwest completed workshops with 12 commissions and other communications
companies on 10 of the 14 checklist items required for long-distance approval by
the Federal Communications Commission. Qwest is also participating in a unique
multi-state test of its operating support systems with 13 commissions and in a
separate test of these systems with the 14th commission..
Qwest intends to file its first application with the FCC this summer to re-enter
the long-distance business in one of the states in its local service area and to
file applications for other states later this year and early next year. After
the first application is approved, the multi-state testing process is expected
to allow Qwest to accelerate the FCC's approval of the applications for the
remaining states.
At the NARUC conference, Nacchio also stressed competition and technology as key
drivers for success in the telecommunications industry. He said that regulation
should foster investments in new technology and facilities and should not
support businesses that simply exploit the unequal application or effect of
regulations or rely upon below-cost rates or subsidies.
"We like competition," Nacchio declared. " We open our own markets and break
into others." He said Qwest supports open markets and the same regulations for
everyone.
"Qwest is a clinical study of how, in open markets, good things can happen to
you if you follow technology, which we did, and if you're unimpeded by
regulation, which we were," Nacchio added in describing how Qwest has grown
since June 1997 when it became a public company.
At the investor conference here later in the morning, Nacchio is expected to say
that Qwest is succeeding as others are struggling because it has a diverse
8
portfolio of services and focuses on the growth segments of the communications
industry. The conference was sponsored by Janney Montgomery Scott.
Qwest reported January sales were strong for such services as Web hosting in
Qwest CyberCenters; Digital Subscriber Line (DSL) services for high-speed
Internet access; Direct Internet Access (DIA), which gives businesses direct
high-speed access to Qwest's global broadband fiber-optic network; application
services provided by Qwest Cyber.Solutions; and optical network services to
wholesale firms. Traditional data services and access line growth in January
were on plan, as was growth in wholesale services in the local service area.
ABOUT QWEST
Qwest Communications International Inc. (NYSE: Q) is a leader in reliable,
scalable and secure broadband Internet-based data, voice and image
communications for businesses and consumers. The Qwest Macro Capacity(R) Fiber
Network, designed with the newest optical networking equipment for speed and
efficiency, spans more than 104,000 miles globally. For more information, please
visit the Qwest web site at www.qwest.com.
# # #
This release may contain projections and other forward-looking statements that
involve risks and uncertainties. These statements may differ materially from
actual future events or results. Readers are referred to the documents filed by
Qwest with the Securities and Exchange Commission, specifically the most recent
reports which identify important risk factors that could cause actual results to
differ from those contained in the forward-looking statements, including
potential fluctuations in quarterly results, volatility of Qwest's stock price,
intense competition in the communications services market, changes in demand for
Qwest's products and services, dependence on new product development and
acceleration of the deployment of advanced new services, such as broadband data,
wireless and video services, which could require substantial expenditure of
financial and other resources in excess of contemplated levels, higher than
anticipated employee levels, capital expenditures and operating expenses, rapid
and significant changes in technology and markets, adverse changes in the
regulatory or legislative environment affecting Qwest's business and delays in
Qwest's ability to provide interLATA services within its 14-state local service
territory, failure to maintain rights of way, and failure to achieve the
projected synergies and financial results expected to result from the
acquisition of U S WEST timely or at all and difficulties in combining the
operations of Qwest and U S WEST. This release may include analysts' estimates
and other information prepared by third parties for which Qwest assumes no
responsibility. Qwest undertakes no obligation to review or confirm analysts'
expectations or estimates or to release publicly any revisions to any
forward-looking statements to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events.
The Qwest logo is a registered trademark of, and CyberCenter is a service mark
of, Qwest Communications International Inc. in the U.S. and certain other
countries.
Contacts: MEDIA CONTACT: INVESTOR CONTACT:
Tyler Gronbach Lee Wolfe
303-992-2155 800-567-7296
tyler.gronbach@qwest.com IR@qwest.com
9