One of the leading integrated telecommunications service
) received two contracts from the Federal Communications Commission
(FCC), which is expected to generate a cash flow of $9.6 million
over a five-year period.
The company received both the contracts under the General
Services Administration's Networx Enterprise deal (GSA).
The new contract entails deployment of Wide Area Network (WAN)
services to the FCC inclusive of private-line services and
Network-Based Internet Protocol Virtual Private Network Services.
Moreover, CenturyLink bagged another contract to offer Managed
Trusted Internet Protocol Services (MTIPS) to the FCC. The
MTIPS contract was valued at $2.64 million over the next five
years, generating $472,000 in the first year followed with $2.17
million over the next four years.
Few days back, CenturyLink received $20 million from the U.S.
General Services Administration (GSA) to offer Voice over Internet
Protocol (VoIP) services to GSA over the next five years. The VoIP
solution will include hosted and premises-based services covering
GSA Region 8 offices in Colorado, Montana, North Dakota, South
Dakota, Wyoming and Utah.
CenturyLink has successfully undertaken integration and
operation of the Embarq properties, mitigating the rate of access
line loss and meeting customer demand for high-speed Internet and
high-bandwidth services. We believe that the acquisitions of Qwest
and Savvis will significantly enhance CenturyLink's position as a
global communications leader and strengthen its ability to drive
long-term shareholder value.
However, stiff competition from other low cost telecom
LEAP Wireless International Inc.
) and significant integration challenges coupled with increased
operating expenses resulting from the acquisitions may impede the
company's operating performance going forward. Hence, we maintain
our long-term Neutral recommendation on CenturyLink.
Currently, it has a Zacks#3 Rank, implying a short-term Hold
rating on the stock.
CENTURYLINK INC (CTL): Free Stock Analysis
LEAP WIRELESS (LEAP): Free Stock Analysis
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