Qwest said Monday that it would raise rates on certain services while its CEO said that earnings for 2008 would fall on the lower end.
In a letter to customers, the Denver-based telecommunications company announced rate increases for certain features of residential and business phone service, such as call waiting and caller ID.
The changes are set to take place July 1, 2008. According to a statement from company spokeswoman Margaret Fogarty said that “changing market conditions require occasional price adjustments in order to remain competitive.”
She said that less than 20 percent of Qwest customers will affected by the new rates.
“Qwest has not raised residential rates in Colorado in more than two years, and we will continue to adjust our pricing in accordance with our costs and the marketplace,” she said. “Keep in mind, this is the first change of its kind in more than two years. Cable, on the other hand, increases rates 6 to 9 percent each year.”
About 25 a la carte residential services will see rate increases, along with 19 business services. The changes will not affect services and features in bundled packages, such as Qwest Choice Home, said the company in a letter to customers.
Speaking at an investor’s conference in New York Monday, Qwest chairman and chief executive Ed Mueller said that the economy, competition and customers who replace their home phones with wireless devices have hurt sales.
“There’s a lot of headwind, as you know, from the housing downturn and the financial woes of our country right now,” Mueller said.
In February, Mueller forecast called for sales near or slightly below its $13.8 billion in 2007 revenue.
Information from Bloomberg News was used in this report.
Kimberly S. Johnson: 303-954-1088 or kjohnson@denverpost.com
