In an attempt to expand its line-up of data centers, U.S.
) will set up a new data center at the Franklin, Tennessee campus
just outside Nashville.
The 21,000 square feet stand-alone data center will be at 311
Eddy Lane and is scheduled to open in 2013. The center - which
serves as the technological base for the company's Internet,
cloud and managed IT services to businesses and customers - will
be built with superior specifications and infrastructure.
The facility is being constructed to cope with the growing demand
for data center and managed services from customers all over the
nation. The unit will also lend support to Windstream Hosted
Solutions to manage its huge network of cloud computing solution.
This technology aids in improving the efficiency level and
accessibility of IT resources and its applications in firms.
Windstream - which currently has 19 data centers across the U.S.
- is putting in a lot of capital for the development of data
Headquartered in Little Rock, Arkansas, Windstream operates in
rural communities in the southern and southwestern parts of the
U.S. The company together with its various subsidiaries provides
local and long distance phone service and high-speed Internet
services to residential and business customers.
We maintain our long-term Neutral recommendation on Windstream,
supported by a Zacks #3 Rank (short-term Hold rating).
We expect Windstream's strong operational performance to drive
growth in business and consumer channels while enhancing its cost
structure. In addition, Windstream's several refinancing and
deleveraging efforts will likely alleviate high debt levels.
Other positives include growing demand for high-speed internet
services, expansion of business via acquisition, increasing data
center co-locations and investment in fiber-to-the-cell projects.
However, we remain on the sidelines due to competitive pressures
from peers like
), a highly leveraged balance sheet as well as continued
access-line erosion and diminishing whole sale business.
FRONTIER COMMUN (FTR): Free Stock Analysis
WINDSTREAM CORP (WIN): Free Stock Analysis
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