CenturyLink 1Gbps Network in Vegas - Analyst Blog

By Zacks Equity Research,

Shutterstock photo

Telecom service provider, CenturyLink ( CTL ) has announced that it will provide faster Internet service in Las Vegas. The company is expanding its fiber network to provide Internet speeds of up to 1 gigabit per second (Gbps) in Las Vegas area. The advanced network capabilities for broadband service will generally cater to residential and small business customers.

After the initially launch in May 2013, CenturyLink has been adding new markets to expand its ultra fast 1 Gbps Internet service. The 1 Gbps Internet service would enable faster video streaming and high-definition movie viewing. It will also speed up access to cloud-based services. 

CenturyLink remains highly focused on expanding its infrastructure that supports advanced data services. We believe that the company's broadband expansion goal will help it to benefit from its growing demand. CenturyLink has managed to enhance broadband speed with its continuous investments in network development. It currently has 73% of its access lines under the 6 MB speed, over 61% of lines under 10 MB and 32% under 20 MB. The company is also entitled to $54 million from the Federal Communications Commission's (FCC) Connect America Fund (CAF) this year, which will be invested to provide broadband services in suburban households of high-cost regions. 

Further, the company is investing in fiber-to-the-tower (FTTT) expansion, with 1,150 fiber builds already completed during the second quarter. CenturyLink also remains on track to built 4,000 to 5,000 fiber towers in 2013. Though, the company expects certain near-term revenue reduction in the wireless segment due to the transition from copper-based DS1 backhaul facilities to fiber-based Ethernet services, this fiber build will position it for long-term growth through reduced revenue compression by early 2014.

However, stiff competition from other low-cost telecom operators like LEAP Wireless International Inc. ( LEAP ), significant integration challenges as well as higher operating expenses resulting from the acquisitions may impede the company's operating performance, going forward.

CenturyLink, which operates with carriers like Frontier Communications Corporation ( FTR ) and Telephone & Data Systems Inc. ( TDS ), currently carries a Zacks Rank #2 (Buy).

CENTURYLINK INC (CTL): Free Stock Analysis Report

FRONTIER COMMUN (FTR): Free Stock Analysis Report

LEAP WIRELESS (LEAP): Free Stock Analysis Report

TELEPHONE &DATA (TDS): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: CAF , CTL , FTR , LEAP , TDS

More from Zacks.com




Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by BankRate.com