QWEST in talks with AT&T now

In what might be a move to increase their leverage, Qwest Wireless is in talks with AT&T to forge a new MVNO relationship. They currently have an agreement with Sprint, but are unhappy with the arrangement there. Sprint has its own problems, so going out of their way to broker a new deal with Qwest likely isn’t atop their priority list. So the MVNO is looking to take its 800,000-plus customers elsewhere. It was confirmed that Qwest held talks with Verizon. No resolution has been made yet, but CEO Ed Mueller says he’ll make a decision “soon”.

Why do I think that AT&T would be using this for leverage? Well, the simple truth is that Qwest was on Sprint, which is a CDMA provider. So is Verizon. This would allow for a nearly-seamless transition to a new carrier. If Qwest ended up with an AT&T deal, they’d have to enact a handset exchange.

Of course, the upshot there is the possibility of iPhone availability. However, that might require an unlocking program, since Apple’s deal is exclusively with AT&T, not with any subsidiaries or partners. So, as you can’t get the iPhone with Earth Tones, you likely won’t be able to should Qwest partner with AT&T.

This is the first time I’ve seen this tidbit: Qwest had actual wireless holdings up until 2005. At that point, they sold off their licenses to Verizon, raking in $418 million.

Qwest is looking to provide a viable four-play option: Wireless phone, home phone, cable, and Internet. It has a deal with DirecTV on the cable front, and is looking for a similar arrangement for its wireless services. Mueller describes their deal with DirecTV as “an example of a positive relationship.”

In the end, though, I’d imagine Qwest goes with Verizon.

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