Qwest names new CEO

DENVER -- Former Williams-Sonoma CEO Edward A. Mueller said Monday he plans to focus on fundamentals, especially customer service, as the new head of Qwest Communications International.

Mueller, who will replace retiring Chairman and Chief Executive Officer Richard C. Notebaert, also said he has no plans to make major changes, such as a merger or acquisition. Mueller noted that the Denver-based telecom has worked hard in the last five years to pull itself out of financial trouble.

"Obviously, there are challenges in any business, and we're in a sector that is changing as we speak," he told analysts. "I do think we win in the end of the day, not through technology but through people and service."

Qwest named Mueller, 60, as CEO late Sunday. It's a familiar position for Mueller, who followed Notebaert as chairman of Ameritech before its merger with SBC Communications, Janco Partners analyst Donna Jaegers said Monday.

"He seems like a fine choice," she said. "He's got good experience with the Bell System and good experience with a Bell company that might have had some limits" on funds for buying and upgrading physical assets.

Mueller takes over as Qwest competes for customers in the era of bundled packages that offer telephone, wireless, Internet and television services.

Qwest vies with Comcast Corp. across much of its Western territory, countering the cable giant's package with telephone and DSL service, reselling wireless service and DirecTV satellite TV.

Qwest has a limited television service, which Mueller said he believes is a good one, but he will look deeper into each business segment.

Mueller has more than 34 years of experience in telecommunications and was president and chief executive officer of Ameritech from 2000 to 2002. He sits on the boards of VeriSign, Clorox and GSC Acquisition.

He will earn an annual base salary of $1.2 million and a target bonus of up to twice that amount, Qwest said. During 2007, Mueller will receive a guaranteed minimum bonus of $947,000.