MVNO Qwest looks to change carrier agreement

Qwest Wireless is one of those rare MVNOs that operates as a postpaid service. This puts them in a boat with, really, Helio and a scant few others. The general idea is that if people wanted to be locked into a contract, they’d opt for the services of the larger carriers. For Helio, postpaid makes sense because they differentiate themselves from the pack with excellent handset offerings. I’m not sure exactly what Qwest brings to the table, but it must be something, since it actually discontinued its prepaid service. In any regard, the MVNO is looking to break ties — or at least change the arrangement — with its current host, Sprint Nextel.

“We need a wireless partnership that is different than the one we have today,” [Chief Executive Ed] Mueller said. “We have a hole in wireless.”

Qwest provides multiple communications services, including landlines, cable TV, and broadband Internet. But because of the fall-off in landlines and the increased speed of broadband, many of their services have been slumping. They’re looking to wireless to fill that void.

Analysts aren’t sure whether Qwest will seek a better deal with Sprint, or will look elsewhere for wireless reselling. Given Sprint’s current problems, giving a better deal to Qwest might not be atop the priority list.

At the end of 2006, Qwest’s wireless service had 2.1 million subscribers. This gives them a sizable chunk of Sprint’s 7.7 million MVNO customers, so maybe Sprint does have some incentive to help them out here.

[Reuters]

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