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New Qwest CEO Mueller to focus on customers

Published August 13, 2007 at midnight

Qwest's new CEO Edward Mueller said this morning that he plans to listen and respond to what customers want and believes his stint as head of retailer Williams-Sonoma will serve him well.

"To combat (competition) you have to have extraordinary service," the telecom and consumer marketing veteran said in an interview with the Rocky Mountain News. He said the company must ask, "why would the subscriber want to be with us?"

He told analysts that his experience at Williams-Sonoma taught him "what it takes to win against other competitors" and that "everything you do today you have to earn."

Qwest announced Sunday night that Mueller, 60, would be Dick Notebaert's successor as chief executive officer.

Notebaert said Mueller (pronounced Miller) was his top recommendation to the Qwest board of directors. The board named Mueller on Friday, and he started the job today, with plans to address employees at 2 p.m. at the Hyatt Regency in downtown Denver.

Mueller spent 34 years in the telecommunications industry, rising to president and CEO of Ameritech from 2000 to 2002. He became CEO in 2003 of Williams-Sonoma, leaving in 2006.

Notebaert called Mueller "a proven leader with a broad background of communications and retail experience" and "well suited to meet the challenges of a highly competitive industry."

Mueller said he has great respect for what Notebaert has accomplished in the past five years at Qwest.

"But now the challenge is to continue to build on that solid foundation by driving revenue growth . . . and continuing to reward stockholders," Mueller told analysts. He said the "new" telecommunications industry requires one to be "quick and nimble and provide the services required."

Mueller reiterated many of the same goals as Notebaert, especially in terms of putting customers first.

Mueller's retail experience will be tested early, with Qwest increasingly challenged by cable TV companies such as Comcast, as well as wireless carriers in its 14-state local phone territory.

Several analysts interviewed in the past week said Qwest also needs to be more aggressive in mergers and acquisitions to boost traffic on its nationwide fiber-optic network.

He said he has no plans as far as mergers and acquisitions, but reiterated Notebaert's previous comments that Qwest would seek to be opportunistic.

Mueller said he didn't come to Qwest to groom the company for sale, but rather to "effectively operate the business."

Notebaert surprised many when he announced in June his plans to retire without a successor in hand. But he said then that his successor should have a retail mindset and that he would help the board in its decision. The announcement reflected Notebaert's clout in picking his successor.

Analysts give Notebaert credit for lifting Qwest from the brink of bankruptcy. But they have noted that much of the company's improved financial condition has come through cost-cutting.

Mueller retired unexpectedly from Williams-Sonoma July 11, 2006, the same day the company announced it was cutting revenue forecasts because of sales weakness at is Pottery Barn chain. But Mueller said it's "not true" that he resigned for that reason, while declining to elaborate.

Edward A. Mueller

  • Age: 60
  • 2003-2006: President of Williams-Sonoma
  • 2000-2002: President and chief executive officer of Ameritech
  • 1999-2000: President of SBC International Operations
  • 1997-1999: President and chief executive officer of Pacific Bell
  • 1968: Joined SBC in 1968 and held executive level positions in the company, including president and chief executive officer of Southwestern Bell Telephone
  • Education: Bachelor's degree in civil engineering from the University of Missouri; executive M.B.A. degree from Washington University
  • Native of St. Louis, Mo.

smithje@RockyMountainNews.com or 303-954-5155

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