Qwest Q1 strong, Comcast threat looms

Qwest beat previous analysts expectations by posting a profit of $88 million and claims to be on track to be profitable in 2006. The Denver-based Baby Bell first quarter revenue was only 0.8 percent to $3.48 billion from the comparable quarter in 2005, but was able to control costs and increased ARPU to post a 54 percent increase in net income. The company sees accelerated migration from dial-up to broadband and was able to overcome loss of business following the merger of AT&T with SBC and MCI with Verizon.

Despite the positive earnings, Janco Partners analyst Donna Jaegers voiced concerns that Qwest risks losing a bigger chunk of its market to Philadelphia-based cable giant Comcast if it doesn't invest more in its network.

To learn more on Qwest's first quarter earnings:
- read this article from Denver Business Journal

PLUS: Comcast and partners seem to be going after Qwest business lines--Comcast dropped its own line in at 10 Mpbs bypassing the convention center 1 Mpbs Qwest lines at the Biz Expo in Denver. Blog

ALSO: AOL unveils VoIP phone service. Article