We've previously discussed how Seattle has long been considering a fiber optic citywide network, and how Qwest opposed the plan. Despite having absolutely no plan to ever offer anything faster than 7Mbps in the region, the telco has consistently complained about the project. A Seattle Times reporter sits down with Qwest CEO Dick Notebaert and asks him why his company is slacking when it comes to faster broadband in the Pacific Northwest.

"Notebaert implied that Qwest will come through with faster broadband when customers are ready. He said 55 percent of Seattle-area Internet users are still using dial-up services, and haven't upgraded to the DSL and cable services available. "If the customer says 'I'm ready,' we're going to pour it on," he said. That's as much of a commitment to fast broadband as I could get."

Notebaert's hemming and hawing over the timeline for serious upgrades is nothing new. As we've discussed, Qwest is saddled with some $15 billion in debt and has no direct wireless phone revenue, leaving Notebaert in the position of having to wait and see if his company survives first. The company has offered very geographically limited IPTV service in Colorado, Omaha, and Arizona.

Like AT&T, Qwest has been busy trying to eliminate local franchise obligations, which would allow them to cherry pick the most profitable areas - pleasing investors, but obviously leaving coverage gaps when it comes to next-generation broadband and IPTV services. Yet Qwest has been unwilling to allow others to fill these gaps - suing to derail the Utah area muni-fiber project Utopia, which currently offers (via companies like AT&T and MetroNet) symmetrical 15Mbps fiber connections for $40.

Despite having paltry plans to deploy next-generation services, Qwest is also ready to join the other telcos in creating a so-called two-tiered Internet. "Our goal is to offer customers including content providers the opportunity to enhanced their customer experience and provide faster delivery for their products," recently stated Notebaert. "And we will be paid accordingly for this product segmentation opportunity."

Notebart is also likely stalling on serious upgrades because he believes the telco could be a tasty acquisition target. The CEO dropped the hint in a recent NY Times report. Industry analyst Dave Burstein opines that the CEO may be planning to pull up stakes "before cable VOIP, Seattle and Utah municipal networks, and wireless substitution clobber the company."