One of the leading integrated telecommunications service
) inked a 10-year deal worth $750 million with the U.S. defense
department for providing high-speed Internet service to Defense
Research and Engineering Network (DREN) III.
CenturyLink will connect the supercomputers of each department
with its advanced fiber-optic network, thereby delivering speeds
of 50 Mbps to 100 Gbps. Moreover, the company will connect the
scientists and engineers of popular research institutions with
the U.S. defense group by delivering Ethernet, Internet Protocol
and optical wave services through a Virtual Private Local Area
CenturyLink is also taking initiatives to curtail access line
losses, though it exerts pressure on voice and network access
revenues. The company is bundling integrated services, promoting
new services such as video, obtaining new wireless spectrum from
Federal Communications Commission (FCC) and improving
infrastructures through network investment. This should work in
favor of the company's revenues and earnings.
Further, the company continues to strengthen its competitive
position through partnerships and product launches. CenturyLink
has started reselling
Verzion Communications Inc.
) products and services to small business customers and aims to
expand its services in all markets over the next several months
in a phased manner.
However, stiff competition from other low-cost telecom
LEAP Wireless International Inc.
) significant integration challenges coupled with increased
operating expenses resulting from the acquisitions may impede the
company's operating performance, going forward.
CenturyLink currently carries a Zacks Rank #3 (Hold).
CLEARWIRE CORP (CLWR): Free Stock Analysis
CENTURYLINK INC (CTL): Free Stock Analysis
LEAP WIRELESS (LEAP): Free Stock Analysis
VERIZON COMM (VZ): Free Stock Analysis Report
To read this article on Zacks.com click here.