Qwest to resell Verizon Wireless services
Qwest previously had a deal with Sprint, however it had indicated that it was looking for a new wireless partnership.
Qwest announced the Verizon deal, which has a term of five years, on Monday without disclosure of financial terms. While it is a regional carrier, it is the only one not to own its own wireless business.
The Sprint deal had allowed Qwest to offer its own branded wireless service, but was hampered by the terms of its agreement, which prevented Qwest from offering the latest handsets to customers, and forced it to buy minutes for its customers through a wholesale agreement.
Discussions with Verizon have been under way since at least February, when the company's CEO Ivan Seidenberg first confirmed a possible arrangement between the two.
While the Sprint agreement does not expire until February 2009, Qwest said that it will begin to market the new partnership as early as this summer. Customers will be able to purchase wireless plans from Qwest customer service, its retail locations, and through qwest.com.
"Qwest's strategies for success certainly will benefit from this deal and we look forward to a solid relationship with Verizon Wireless," CEO Ed Muller said.
Sprint expressed disappointment in Qwest's move, but said it will remain focused on its other wireless partners as well as expanding its partnership reach elsewhere.
Source: betanews.com
