Communications service provider
) announced the launch of a fresh advertising campaign. The
promotion will be carried out across the U.S. and shed light on
the company's advanced network, managed hosting and cloud
The publicity will be accomplished via television, print and
online ads and will focus on highlighting CenturyLink's
commitment to rendering global broadband, cloud infrastructure
and varied IT solutions. Although the ads primarily emphasizes on
the business offerings of the company, management stated that
CenturyLink will continue to deliver broadband, entertainment and
voice services to residential customers across the nation.
Monroe, LA-based CenturyLink believes that the new advertising
strategy will draw attention to its capability to tender high
scale and integrated end-to-end solutions to various businesses.
This will help the third largest telecommunications firm in the
U.S. to come closer to other top industry players -
Verizon Communications Inc.
However, we believe that the expenses associated with these
promotional activities will increase the overall operating costs
of the company, leading to margin pressure and lower
profitability. Further, the company also faces headwinds such as
deteriorating legacy voice and access revenues due to the loss of
customers, intense competition from other low cost telecom
LEAP Wireless International Inc.
) and regulatory issues.
Despite these, we appreciate CenturyLink's progress in key areas
like broadband expansion, completing fiber builds, cloud
computing and Prism TV. The company is also banking heavily on
lucrative partnerships and expanding products to new territories
to gather market shares. Additionally, synergies arising from
Qwest and Savvis acquisitions are expected to support revenue
CENTURYLINK INC (CTL): Free Stock Analysis
LEAP WIRELESS (LEAP): Free Stock Analysis
AT&T INC (T): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
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