NOTEBAERT REPLACES NACCHIO AS QWEST CEO
Qwest announced Mon. that its CEO Joseph Nacchio had “voluntarily resigned” and Richard Notebaert, CEO of Ameritech before its merger with SBC in 1999, had replaced him. “We believe it’s in the best interest of Qwest to bring in an experienced leader with strong RBOC skills,” Qwest board member Frank Popoff said in audio conference. Popoff said Nacchio brought company far but it now was good to bring in someone like Notebaert with more than 30 years at Bell company. Ameritech was leader in sales and profit among Bells under Notebaert’s guidance, Popoff said. That doesn’t signify any change in priorities and, for example, company’s Sec. 271 applications remain on track, he said. Notebaert had been CEO of Tellabs since 2000.
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Notebaert, 54, said “it’s great to be back in the business.” He said his priorities would include increasing Qwest’s “credibility with Wall Street” and working with regulatory community, which was “always a high priority.” He said he was looking forward to working again with FCC Chmn. Powell and other telecom leaders in Washington. Qwest has “a unique set of assets” that represent “where everyone is going” in terms of broad mix of services, he said.
Company said Nacchio had agreed to be consultant for up to 2 years, helping in transition and other matters. Philip Anschutz resigned as nonexecutive chmn. of board but remained director and chmn. of board’s executive committee. Anschutz said Qwest “was a very different company” when Nacchio came on board in 1997. “We had a foundation but needed a leader to bring technology and a vision to life and grow Qwest into a full-service communications company.”
Nacchio had been chmn. of both Network Reliability Council (NRIC) and National Security Telecom Advisory Committee (NSTAC), creating uncertainty about who would replace him on those federal advisory committees. NRIC advises FCC while NSTAC advises President on security issues. At NRIC meeting in March, White House cybersecurity adviser Richard Clarke urged Nacchio to find way to “mesh” 2 groups so President and FCC Chmn. Powell could get more coordinated advice. Having same chmn. for NRIC and NSTAC was unusual but deliberate, one source said, because 2 groups are informally coordinated. It wasn’t clear when new chairman -- or chairmen -- would be appointed.