Qwest Communications International Inc. (Q) is among the biggest names in telecom wholesale. And despite the sour economy, the carrier’s wholesale division is thriving. Qwest just launched a new minutes trading desk, for example, and is eyeing ways to provide reach for cloud computing services. xchange’s Kelly Teal caught up with Qwest’s Roland Thornton, executive vice president of wholesale markets, on Tuesday at the COMPTEL PLUS Conference & Expo in Dallas to discuss some particulars. Here is the edited transcript of that conversation:
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| Qwest's Roland Thornton |
What’s new in Qwest’s wholesale division?
RT: In January we started a trading desk. That’s now in the full-fledged swing of things. We did a lot of research and gathered data on customers and we found out that a trading desk for voice was clearly the way to go for us. It’s much more efficient, much more responsive to customers. Voice is a commodity and margins are very low so we wanted to run a profitable business and do it effectively.
How does it work?
RT: We have traders that buy and sell. We also have a group of analysts at the trading desk. The analysts look at [potential clients’] business models, traffic patterns, buying history, then the traders will contact the customer, any wholesale customer.
Why did Qwest implement a minutes trading desk?
RT: What spawned our thinking was a few years back, we had an international trading desk. It worked so well we said, well, let’s try this domestically, let’s make the most of this voice arbitrage that we have experienced. When we sat down and decided to do this, growth in data and IP was almost boundless because the consumption for more capacity continues to escalate. The low-margin voice products were becoming a distraction to data and IP sales. So we separated voice and what we find is the sales force is now 100 percent focused on data and IP sales.
How is that working out?
RT: The way we approach these sales is different from voice. For example, we added hired sales engineers, added technical expertise. We changed the back room to have more flexibility with data and IP – we changed the service center, personnel, order writers and processors.
What are some wholesale trends readers might keep an eye on?
RT: The trends have been pretty consistent the last couple of years – demand for faster speeds, greater capacity and those kinds of things. I think there’s going to be more emerging opportunities along the lines of managed services, along the lines of more integration of products. No matter what segment we’re dealing with, the networks need to be faster and have more capacity.
When you talk about managed services, are you referring to or including cloud computing?
RT: We do think there's going to be some overlap with the cloud computing – it almost has to happen. There are capital constraints across the industry but that doesn’t mean you stop innovating. We’re going to significantly improve our cost position by this overlay of a new expansion of our long-haul network, the one with the reach to all these clouds, and I am optimistic that we’re going to see some pretty good solutions later this year, early next year.