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D.C. telecom cites price in spurning Qwest asset
The Denver Post

Tuesday, May 19, 2009

Washington, D.C.-based Cogent Communications looked at Qwest's fiber-optic network and decided not to consider purchasing it because the asking price was too high relative to its profitability, Cogent chief executive Dave Schaeffer said at an investor conference Monday.

"The combination of the management's expectation of valuation coupled with (its) negative cash flow quickly led us to conclude that we were not going to be an active bidder on that asset," Schaeffer said at the conference, according to telecommunications trade publication Telephony.

Qwest is widely reported to be offering the long-haul network for sale, although Qwest has never confirmed the reports.

Qwest is reported to be seeking $2 billion to $3 billion for the fiber-optic network.

The Denver Post