MOBILE MOVES BY QWEST, SPRINT PIQUE CURIOSITY

Qwest Communications launched national wireless service last week based on the network sharing agreement it created with Sprint last year, while Sprint, in a separate move, announced that it was recalling its PCS wireless tracking stock and putting the business under the same management and financial structure as its wireline unit.

Though the announcements appear unrelated, the timing caused one analyst to speculate on the possibility of closer ties between the two companies. “There could be more here, like Sprint bundling Qwest local [service] with its own long-distance or something else,” said the analyst, who spoke on condition of anonymity. “Could Qwest even merge with Sprint for the wireless business? I don't know about the financial reality, but it's an interesting question.”

Sprint Chairman Gary Forsee stated in a letter to shareholders that Sprint was recalling the stock because it would be easier for the company to bundle its services.

However, according to one published report last week, Sprint may be recalling its stock as part of a positioning for some kind of deal.

Qwest's national launch of wireless voice services comes at a time when the company is trying to improve overall revenue, as well as expand its struggling regional wireless operation. Qwest has 851,000 wireless subscribers in its 14-state region, but reported in its fourth quarter financial results that wireless revenue fell to $137 million, from $152 million in the previous quarter.