UPDATE 1-Qwest CEO sees more consolidation opportunity

*Sees more U.S. telecoms consolidation

*Has about 70 pct share of landline market in its region

NEW YORK, Sept 17 - Qwest Communications International Inc could see "more opportunity" for consolidation in the U.S. telecommunications industry, Chief Executive Ed Mueller said on Thursday.

Speaking at the Goldman Sachs Communacopia conference, he said that consolidation would likely continue in the U.S. telecom market but that Qwest would only become involved at the right valuations.

"We'd want to do it in a way that our shareholders are advantaged and not disadvantaged," he told the audience.

Mueller said that this was why Qwest stayed on the sidelines when CenturyTel Inc bought bigger rival Embarq earlier this year.

"That didn't mean we wouldn't have been interested," Mueller said, adding that the company could be either a buyer or a seller in future consolidation.

The executive said that Qwest business customers are still cautious even as the U.S. government has said that the country is emerging from the recession.

He said that Qwest has a roughly 70 percent market share of landlines in its operating region in its mass market segment, which includes consumers and small businesses and that this would likely remain stable.

Revenue from the company's wholesale business is likely flattening, the executive said.