Qwest Reinforces Sterling

On May 20, Qwest Communications disclosed a contract with Sterling Savings Bank to strengthen its disaster recovery capabilities. Qwest will provide space in its cutting-edge CyberCenter in Seattle.

Under this 36-month contract, Qwest and Sterling Savings Bank are extending their current relationship to include more than 300 feet of space in Qwest's Tier 1 Seattle data station. This service is supported by an industry-leading level contract.

DETAILS

Sterling, headquartered in Spokane, is the top commercial bank based in Washington, providing small business, personal, commercial and institutional financial services.
QWave is a private, point-to-point, fully managed service provided via advanced dense wave division multiplexing (DWDM) network. QWave is perfect for financial institutions and banks that need broadband connectivity, but do not want to be responsible for operating the network infrastructure.
Qwest's #1 hosting services deliver redundant, secure, and environmentally controlled facilities that store important information.
Within its CyberCenter facilities, Qwest Hosting provides a diverse selection of customizable Internet solutions, powered by the company's international, all-optical IP network.
Professional support, offered by Qwest CyberCenters, allows customers to operate complicated Web sites, manage complete IT environments, and conduct e-commerce.
Qwest operates one of the largest fiber-optic networks in the nation, supporting 40Gbps data transmission rates.

"Uptime is critical to instilling customer confidence," said Cindy Parker, Information Technology Director at Sterling Savings Bank. "With its proven data protection and secure network, Qwest gives us redundant hosting solutions that round-out our business continuity plan."

"Qwest hosting and network solutions give financial institutions the ability to safeguard customers' financial data whether the information is in storage or moving between locations," said Teresa Taylor, Executive Vice President of Qwest Business Markets Group. "Our customers know that if there is ever a serious outage, Qwest will work with them to safeguard and restore their vital data and information."

Qwest Offers Free Wi-Fi

Thanks to a recent partnership with AT&T, Qwest will provide its customers with free wireless Internet service. All Qwest broadband Internet subscribers will be able to enjoy free Wi-Fi at any of AT&T's 17,000 wireless hotspots.

Qwest decided to sign a contract with AT&T, following a study released by Impulse Research Corporation, stating that 'nearly half of all respondents valued Wi-Fi because it provided them with the freedom and flexibility to stay connected beyond the office or home.' According to Executive Vice President of Qwest's Mass Markets Organization, Dan Yost, the study also discovered that almost half of the individuals surveyed felt 'antsy' if they went more than one hour without access to e-mail.

In 2008, AT&T began to actively broaden its wireless Internet availability by offering Wi-Fi service in more than 7,000 Starbucks across the United States. In purchasing Wayport, an applications and network management firm that delivers back-office management for wireless hot spots, AT&T expanded its scope of Wi-Fi offerings. The Starbucks transaction and the Wayport acquisition, when combined, helped the Dallas-based company extend its wireless Internet reach to approximately 20,000 regions in America, and over 80,000 locations around the globe.

According to AT&T, the company's broadband users took advantage of AT&T wireless Internet hot spots more than 10 million times during the first quarter of 2009. That is over triple the amount of times AT&T subscribers utilized its Wi-Fi hot spots during the first quarter of 2008. Why such substantial growth? The telecom giant attributes the increase in demand to two possibilities: the extension of AT&T's wireless Internet footprint and the growing availability of Wi-Fi capable products.

Mother's Day Offerings

Make your mom feel appreciated this Mother's Day, with special offerings from Qwest. Promotions are available through May 10, 2009. Qwest Stores are providing a free digital keychain to new, eligible Qwest High-Speed Internet subscribers. Current customers who upgrade and subscribe to Qwest's free online backup service may also qualify. The free digital keychain holds more than 100 images! With this device, mothers can enjoy family photos no matter where they go.

Both new and current Qwest high-speed Internet subscribers can take advantage of a free 2GB automatic online backup service, Qwest Personal Digital Vault. With this service, mothers can secure important documents and images with encrypted off-site protection. Enjoy peace of mind knowing that your important files will not be lost due to computer viruses, crashed hard drives, or other unforeseen circumstances. If 2GB does not sound like enough storage space, Qwest customers can upgrade to 50GB for just $6.99 per month! With 50GB of vault space, you can store up to 30,000 documents; 20,000 images; 5,000 songs; or 600 videos. Get unlimited storage space for just $9.99 per month.

By texting 'flower' to QWEST (79378), Qwest customers can send a free, virtual Mother's Day bouquet. This digital flower image can be personalized for your mom! Instructions will be sent in a reply text message, and standard text messaging rates will apply.

Qwest operates almost 100 stores throughout America. To try Qwest services, to purchase Qwest networking products - only available retail stores, to customize service bundles with DirecTV, Verizon wireless service, Qwest high-speed Internet, and to recycle old wireless devices. To find a Qwest retail store in your area, please visit www.qwest.com/stores.

"With services that keep families in touch, a free digital photo key chain that lets Mom take favorite photos anywhere she goes and a free virtual bouquet that doesn't wilt, Qwest is helping customers show Mom that she's loved and appreciated," stated Jim Vogel, Vice President of Qwest, Alternative Markets.

Qwest First Quarter Results

Wednesday, Qwest Communications announced first-quarter results for 2009. During the 1Q, net income increased by 37%, growing from $150 million to $206 million compared to 1Q 2008. Earnings per share increased by 50%, jumping to 12 cents. Qwest’s 2009 first quarter results reflect a heavy contribution from each business sector. First quarter earnings per share were influenced by a growth in OPEB expense and non-cash pension, which was balanced by a reduced tax rate and lower net interest costs. Qwest’s 2009 1Q results include a reduced charge for restructuring, severance, and realignment. Charges dropped from 2 cents per share to 1 cent per share since 2008.

First quarter revenue for Qwest was reportedly $3.2 billion. The adjusted EBITDA in 1Q 2009 includes about $50 million in non-cash pension and OPEB expenses. The adjusted EBITA margin increased from 33.6% to 36.1% since 1Q 2008. Adjusted free cash flow for 1Q 2009 was $339 million, compared to $56 million for 1Q 2008.

During 1Q 2009, Qwest made strong progress on its profit goals, with all sectors announcing a year-over-year and continuous improvement in sector margin percentages. Qwest experienced a strong demand for Internet and data services in all sectors. Once again, 1Q revenue growth in Business Markets is predicted to have surpassed the industry.

“Disciplined execution and focus on cost controls have produced a strong start to the year given the current economic climate,” said Edward A. Mueller, Qwest Chairman and CEO. “We are seeing tangible results from our focus on our key strategies to perfect the customer experience, including demand for our leading data services and strong results from our partnerships. We continue to tightly manage spending and investments to preserve financial strength and mitigate near-term economic pressures.”

Innovative Ad Campaign

Denver-based Qwest Communications has launched an integrated ad campaign, highlighting the value of its easy-to-use technology and high-tech services. Qwest’s innovative marketing campaign takes a comedic approach to portraying the role that technology plays in people’s everyday lives. The campaign emphasizes that Qwest’s technology makes everyday life easier and more efficient – from saving money with bundled service packages and protecting memories to getting the most out of a high-speed Internet connection.

“The new Qwest campaign showcases what people want from technology. People need great service, to save money, and to get extra value from their technology provider. To us it’s about perfecting their experience,” Todd Townsend, Qwest Vice President of Marketing, stated. “We’re showing how Qwest’s services are the smarter choice for today’s lifestyles, enhancing the lives of our customers.”

Campaign Details

DraftFCB developed the new ad campaign, which uses humor to show the extremes that people go through to enjoy various technologies on a daily basis. Radio, TV, public relations, online and outdoor advertising, and direct mail will be utilized in the highly integrated campaign.

For example, to endorse Personal Digital Vault, Qwest’s new free automatic online backup service, a 30-second television ad displays a family attempting to reconstruct a child’s lost photo album, while another ad shows a former college student who became a cow-milker after losing her thesis in cyberspace. Because many Americans are concerned with finances, Qwest launched a 60-second spot chronicling a woman as she attempts to refill a ketchup bottle with individual ketchup packets.

This is Qwest’s first key marketing campaign launch since Todd Townsend became the company’s Vice President of Marketing.

“Qwest’s new campaign is about enhancing and enabling customers and their technology, not telling and pushing them. We wanted to show that Qwest understands its consumers, their life and needs,” Cary Pierce, Executive Vice President of DraftFCB.