Once again Qwest is left without a partner. The proposed AT&T/BellSouth combo has left Qwest with fewer deal-making options. Remember its failed attempt for MCI? Qwest isn't that attractive, of course, because of its high debt load, but it also is missing another strategic asset: wireless. The company throughout the years has had a schizophrenic approach to wireless, selling off its wireless assets, winning new wireless licenses in the PCS auction and then selling the licenses off again because it couldn't make a profitable business. Now it is a reseller of Sprint Nextel services, and wireless is turning out to be the biggest growth engine in the telecom industry.
To find out more about Qwest's merger dilemmas:
- read this report from The Wall Street Journal (sub. req.)