There might be more to just needing a telecom company.
Not that this is anything new but I know I've seen several members question WT intentions on this. I do not have much information on QCS Telecom (the company itself) but certainly agree that it is fishy to think that the WTBTS would invest in a company with no current employees or customers. I know the purchase price was pennies relatively speaking. But yet, if they are promising to buy all of QCS services to carry out the fiber optic installation, then the purchase price is not the sole expense incurred.
I am in the telecomunications business and have been for the past 10 years. I am not a business man, I am a technical person but I do get involved or participate on the why and how of business decision at my job. There are two types of telecom businesses, ILECs and CLEC. An ILEC is your typical phone company, although defined as those companies that were present before Bell was split. A CLEC is a telecom company that actually needs to compete with others and win customers in order to make financial sense. Both types have regulations that they need to follow, where the ILEC is generally much more heavily regulated. ILEC also enjoy cash infusions from the Universal Service Fund (A fee we all pay in our telephone service) and specially if they are dedicated to serve high cost or unserved areas. CLECs in the other hand do not get this, but they can be, under certain cirscunstances, subsididiares of an ILEC which is operateed by the same employees of the ILEC.
CLECs can, however, participate in government grants. The company I work for is an ILEC, which in turn also works with a subsidiary (a CLEC). We do all kinds of telecom work, telephone, internet, long distance, data transport, etc. We also bury lots and lots of fiber optic cable.
A few years ago we were awarded a huge grant that was part of the ARRA and other moneys thru the USDA. Everything amounted to over 80 million. This money was to be dedicated to install brand new infrastructure for unserved areas. This was such widespread program, that during 2012 there was an actual shortage of fiber optic supply around the US. The municipalities that were to benefit from this gave us permission to use empty lots as places to store the massive wooden spools of fiber cable
This programs have not stopped. While the initial funds have served their purpose, other programs have come up. One is the CAF (Connect America Fund) which will come to replace USF in a few years. Another is the broadband initiative started by the Obama admin. There is also a new one called "Rural Broadband Experiment" funded by the FCC (Could be some other agency)
Where I am going with all these? That while I could be bias by my enviroment, but the only reason I can think of the WTBTS buying such company, could be to rip the benefits of government funding. They could not qualify for this grants by themselves, they are not a telecom company. Neither could have QCS built the fiber and then sell it to WT. QCS, having no customers, could not qualify for the grants. Even us, with over 10000 customers, we needed to justify our grant by bringing in anchor institutions (like universities and large hospitals) who could write a reference for us, saying that they truly needed us to serve their areas.
The one thing that catches my eye from the documents regarding the purhcase of QCS is the mention of small communities and their economic impact. Most of the programs aboved mentioned are geared towards small or economically challenged communities, where viable broadband services are not available. Also, QCS could not qualify for the grant without any meaninful backing from a third party "investor". Having the WTBTS sign over a promise of buying 100% of the output of services, grants QCS the success they need to qualify.
As to why they need to run a telecom company? Well, if it is not just to get someone else to pay for the infrastructure, then having an internet inside the internet, and therefore control content, is not far fetched. Entire countries already do this. It is not utterly difficult. They would need a large datacenter for this, but it is not impossible. The difficult part would be getting everyone to subscribe. It only takes one to break such system. I know I would be the one.
My ignorant two cents..