Qwest Communications added 150,000 DSL subscribers in Q3 2005, bringing total lines in service to 1.3 million -- a 12.6% increase sequentially and a 40% increase over the year-ago quarter. The company's mass markets data and Internet revenues increased 8% sequentially and 38% year-over-year. Currently, DSL is available to 75% of Qwest households and 96% of qualified households are able to purchase broadband speeds of 1.5 Mbps or greater.
Financially, Qwest reported third quarter revenue of $3.5 billion, compared to $3.47 billion in the second quarter and $3.45 billion in the third quarter a year ago. This represents the sixth consecutive quarter of stable revenues, as well as continued year-over-year growth in mass markets and business revenues. Some other highlights:
- Consumer bundle penetration expanded to 50%
- Long-Distance penetration is at 36%
- Operating expenses totaled $3.3 billion, a decline of 9 percent or $326 million compared to the third quarter of 2004.
- Q3 CAPEX totaled $445 million, compared to $418 million in the third quarter of 2004
- Qwest's wireless subscriber base grew by more than 4,000 in the quarter, bringing total wireless subscribers to 748,000. Revenues remained flat because of promotions and incentives.
APRU increased 9 percent to $51 from $47 a year ago. - Total access lines were down 154,000 in the third quarter, an improvement from a loss of 231,000 lines in the second quarter (excluding the 21,000 UUNet disconnects) and 159,000 lines in the third quarter of last year.
- Small-business access lines increased for the fourth consecutive quarter. Business retail access lines declined 14,000 in the third quarter, an improvement from year-ago declines and less than half of the loss last quarter.
- Resold access lines declined 52,000 sequentially. Qwest continued its leadership role in working with wholesale customers by signing commercially negotiated agreements. Approximately 96 percent of the company's UNE-P revenue now comes from customers on commercial Qwest Platform Plus (QPP) contracts.
- Qwest's DIRECTV customer net additions continued to grow in the third quarter; subscribers currently total more than 95,000. Qwest and DIRECTV's previously announced strategic relationship allows Qwest to offer DIRECTV digital satellite television services to residential customers across the western United States.
