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Qwest’s bidding battle to fend off Verizon and win MCI has entered its third month. Qwest’s future, even its survival, may hang in the balance.

So, does anyone in Denver care?

“As long as the phone still works, I don’t really care,” said Mark Blaising, 40, a financial consultant and Denver resident for 15 years.

“I would love to see Qwest crash and burn. Everything they’ve done, they’ve done unethically,” said David Proctor, 23, of Denver, referring to alleged financial fraud during the era of former chief executive Joe Nacchio.

“All they want to do is raise the rates, so I stopped paying for it. Now I just have my cellphone,” said Stuart Bricknell, 51, a Colorado resident for 35 years.

Such reactions may be common when consumers are asked to comment on the fate of a corporate giant like Qwest.

Yet, Colorado civic leaders and economists say it’s important for Denver and the state that Qwest prevail in its bid for MCI – or at least remain an independent company.

Like it or not, Qwest is one of Colorado’s flagship companies, as evidenced by its once-controversial blazing blue sign atop its downtown Denver headquarters.

REACTION TO QWEST’S MCI PURSUIT

“What affects me is if my rates are going to increase. I’m loyal until it affects my pocket. I know Qwest is a large employer in Colorado, so that will affect a few jobs. For the economy, I hope the merger goes through.” – Jonathan Kelly, 35, Green Valley Ranch. “Qwest is getting too big for their britches. The service is not worth a darn that I’ve seen, and all they want to do is raise the rates. I’d like to keep a local phone company; that’s always good. Most corporate companies are getting too big.” – Cary Ward, 50, Denver “Qwest has given me good service.” – Nelora Ward, 60, Denver, married to Cary “The Qwest building proclaims us as a major telecommunications hub. As one of the state’s largest employers, Qwest is a major driver for the economy.” – Patricia Silverstein, 44, economist and president of Littleton’s Development Research Partners. “Can two battered has-beens (Qwest and MCI) get together and make a virgin? I want to see the company continue to be a viable entity of choice for people, because I want to continue getting my pension check, I want to continue getting my benefits. I’d feel bad for our community economically if they had massive layoffs.” – Brent Berry, 54, of Denver, a former Qwest technician of 30 years. “I think a strong company in our state is one of the cornerstones for our economy, and having that be stronger is good for Colorado.” – Jennifer Wolf, 36, Denver, whose husband has worked for Qwest for six years “MCI and Qwest are tainted. If it improves the rates, that would be nice. A lot of people will lose their jobs, same old story. Every time they do these things, I feel pain for people who have 10 years, 12 years with the company then, ‘Presto,’ they’re out on the street with a pink slip.” – Dan Cournoyer, 54, Denver. “I would love to see Qwest crash and burn. Everything they’ve done, they’ve done unethically” (referring to Qwest under Joe Nacchio). I do not like the idea of the merger; it also brings up the antitrust issue. It creates something that is so ridiculously big. Qwest is too big already.” – David Proctor, 23, Denver, EMT for Denver Health. “A Qwest-MCI combination would be a good thing for the state, and MCI shareholders might find it is indeed a good thing for them as well.” – Gov. Bill Owens, 54 “I don’t know much about it. I don’t see it affecting me as of right now. I used to be a Qwest customer. I just went to a cellphone. I’m sure it would be good for Qwest, but I don’t know as far as Colorado goes.” – Kelly Magelky, 25, Golden. “A strong Qwest is a strong Denver. (The MCI deal) would bring some high-level jobs to Denver. It would make them more successful in the telecommunications sector.” (If its headquarters ever moved from Denver) “It would be a loss. We would survive, but we don’t have too many corporations with headquarters here.” – Denver Mayor John Hickenlooper, 53.

“The Qwest building proclaims us as a major telecommunications hub,” said economist Patricia Silverstein, president of Littleton’s Development Research Partners. “As one of the state’s largest employers, Qwest is a major driver for the economy.”

Qwest is Colorado’s top Fortune 500 company, ranking 136th in 2004. It had $13.8 billion in revenues last year and spends $500 million with local vendors each year. It employs nearly 11,000 people statewide and about 40,000 total, serving a 14-state region.

Telecom and broadcast jobs in Colorado, on average, paid a $72,000 salary in 2002, according to the Denver Metro Economic Development Corp. For every person Qwest employs, more than 2.6 additional jobs, or about 28,600 positions statewide, are directly or indirectly sustained, Silverstein said.

In 2004, Qwest contributed $1.5 million to local charities – about 7 percent of the total that Colorado corporations contributed to nonprofits.

Mac Clouse, director of the Reiman School of Finance at the University of Denver, said companies tend to focus their philanthropic efforts in the city where they are based.

“That’s a worry when we’ve lost a lot of corporate headquarters. An out-of-state company wouldn’t be as concerned about making the state better.”

Back in 1999, Qwest was a hometown white knight, riding to the rescue. Qwest, then a telecom pipeline firm, beat back Global Crossing to acquire US West, the 14-state phone company that was always the smallest and most vulnerable of the Baby Bells. Bermuda-based Global Crossing, which later filed for bankruptcy, had proposed a New York headquarters if it won US West.

Business leaders and politicians, including Gov. Bill Owens and U.S. Sen. Wayne Allard, backed Qwest’s bid for US West. They wanted to keep the region’s telephone provider based in Denver.

Nearly six years later, after a telecom bust and a financial scandal, Qwest is seeking MCI.

Recently, Qwest CEO Richard Notebaert said that if Qwest prevails in its bid, he personally would prefer to keep the combined company based in Colorado but makes no guarantees. MCI, the nation’s second-largest long distance company, is based in Ashburn, Va.

Notebaert claims Qwest has options even if it loses MCI. He said he would never want to take Qwest into bankruptcy, which analysts say is one option to restructure its crushing $17 billion debt load.

Yet, regardless of outcome, some entity will be providing local, wireline telephone service in Colorado.

“It’s a nice piece of business to be involved with Qwest,” said Bob Whitfield Jr. of Hi Country Wire and Telephone, which has sold Qwest services for years. “But I don’t see a scenario where the revenue stream goes away.”

Even if Qwest captures MCI, there will be a price to pay. To sell the deal to Wall Street, Notebaert says Qwest-MCI would cut 12,000 to 15,000 jobs from the company’s combined workforce of 80,000. Speculation is that most cuts would fall on the MCI workforce.

Even assuming Qwest beats long odds, wins MCI, keeps its headquarters in Denver and remains a Colorado flagship, there is likely to be more industry consolidation down the line.

“They still would be bite- sized,” said Donna Jaegers, an analyst with Janco Partners in Denver. “They still would be a potential target.”

Staff writer Will Shanley can be reached at 303-820-1473 or wshanley@denverpost.com.