Telecom service provider,
) 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
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
However, stiff competition from other low-cost telecom
LEAP Wireless International Inc.
), 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
Telephone & Data Systems Inc.
), currently carries a Zacks Rank #2 (Buy).
CENTURYLINK INC (CTL): Free Stock Analysis
FRONTIER COMMUN (FTR): Free Stock Analysis
LEAP WIRELESS (LEAP): Free Stock Analysis
TELEPHONE &DATA (TDS): Free Stock Analysis
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