RPT-UPDATE 2-INTERVIEW:Qwest 2010 capex flat, fiber as bigger pa
(Repeats to widen distribution, adds punctuation at the end of paragraph 13)
*Sees 2010 capex flat with 2009
*Qwest's most recent 2009 capex view was $1.7 bln
*Sees big opportunity in cell-tower backhaul
*Has had inquiries for 7,500 of 17,000 towers
(Adds more comments from chief technology officer on fiber plans, and background)
By Sinead Carew
CHICAGO, Oct 20 (Reuters) - Qwest Communications International Inc Q.N expects its 2010 capital budget to be similar to 2009 even as it plans for more spending on fiber networks to support wireless services, its Chief Technology Officer Pieter Poll said on Tuesday.
Qwest will have to put more fiber optic cable in the ground to meet increasing demand for higher-speed landline connections to wireless broadcast towers -- known in the industry as mobile backhaul, Poll said in an interview with Reuters ahead of his presentation at the Supercomm trade show here.
But this will not mean a rise in the company's overall network spending as Qwest will be able to spend less on other projects that it is wrapping up, the executive said.
"The overall capex program for next year is going to be flat compared to this year," Poll said in an interview with Reuters. "The percentage for fiber is going to increase."
The executive said that backhaul is a "great opportunity for Qwest" as wireless operators look to beef up their wired networks, some of which are strained by increasing use of mobile data services such as video streaming and application downloads to advanced phones like Apple Inc (AAPL.O) iPhone.
The upgrades also will help carriers move to the next generation of higher-speed wireless network technologies, known as 4G. The U.S. mobile market leader Verizon Wireless, owned by Verizon Communications Inc (VZ.N) and Vodafone Group Plc (VOD.L), has promised to test 4G services this year and to start selling them in 30 markets next year.
The no. 2 U.S. mobile service AT&T Inc (T.N) has committed to upgrading its backhaul network just to beef up current network services. As the exclusive U.S. provider for iPhone it has seen big increases in mobile data use since 2007.
Poll declined to discuss any specific carrier customers but said that some carriers are looking for backhaul network speed increases of as much as 35 times today's speeds.
To illustrate the growing demand, Poll said Qwest has inquires from wireless carriers about backhaul upgrades for 7,500 of the 17,000 cell sites in its operating states.
While the company has a firm agreement to provide backhaul upgrades to one big U.S. mobile operator, Poll noted that Qwest, was not assured to win contracts for all those sites.
"It's quite a competitive business. The wireless carriers have options in every city," he said.
Competitors in this area include Comcast Corp (CMCSA.O) and Time Warner Cable (TWC.N).
But the executive noted that Qwest is in a good position due to its ability to expand a fiber network it has already been building for consumers and business clients.
Qwest has been building a fiber network into local neighborhoods -- known as fiber-to-the-node -- for consumer and business services for the last 3 years and has said it is on track for the network to reach a potential customer base of 3 million by the end of this year.
While Poll said that Qwest does not plan to build the fiber-to-the-node network any faster than it has been doing going forward, he noted that cellular backhaul projects will mean that certain neighborhoods would receive these services sooner than they might have under Qwest's previous plans.
(Reporting by Sinead Carew; editing by Carol Bishopric)
((sinead.carew@thomsonreuters.com; + 1 646 2236186)) Keywords: QWEST/INTERVIEW
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