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from: TV Predictions

Qwest: Maybe People Don't Want Telco TV
The telephone company's CEO defends his conservative vision for video service.
By Phillip Swann

Washington, D.C. (May 3, 2007) -- AT&T and Verizon plan to spend billions of dollars over the next several years on new TV services, including robust High-Definition TV lineups.

However, Qwest CEO Dick Notebaert says his fellow telcos may be dialing a wrong number. Asked by Bloomberg News why Qwest does not have a more ambitious TV plan, he said:

"Is it possible that our model is OK?" asked Notebaert back. "We don't have to knee-jerk. The only reason you think I should spend more is because someone else is spending more."

Qwest does offer its customers third-party TV service from DIRECTV -- and it has launched its own TV lineup in several communities in the Southwest (with more likely coming soon.) However, unlike AT&T and Verizon, the company has no immediate plans to launch a larger TV business.

Notebaert's caution is not unfounded. After more than two years, AT&T's u-Verse TV business has less than 100,000 customers while Verizon's FiOS had 348,000 at the end of the first quarter.

Bloomberg reports that AT&T has committed to spending $5.1 billion on TV over the next five years; Verizon will spend $23 billion over the next seven. The telcos are finding it difficult to crack the TV market which is now dominated by the cable and satellite operators.

Both telcos offers more than 20 High-Definition channels in their lineups.