Case 1.9 Qwest: The Revenue Recognition Principle
Synopsis
When Joseph Nacchio became Qwest’s CEO in January 1997, the company’s existing strategy began to shift from just building a nationwide fiber-optic network to include increasing communications services. By the time it released earnings in 1998, Nacchio proclaimed Qwest’s successful transition from a network construction company to a communications services provider. “We successfully transitioned Qwest into a leading Internet protocol-based multimedia company focused on the convergence of data, video, and voice services.”