) - one of the largest U.S. rural local exchange carriers (RLEC)
revealed its plan to expand its Carrier Switched Ethernet
services across the U.S. Windstream announced their plans at the
COMPTEL PLUS convention and Exposition, held between Mar 10-13,
ALASKA COMM SYS (ALSK): Free Stock Analysis
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The Carrier Switched Ethernet undertakes wholesale carrier access
to ILEC and CLEC exchanges. It offers economical multi-location
data solutions with nationwide coverage, for service which will
be available in key metropolitan areas like New York, Chicago
Denver and Phoenix.
We appreciate Windstream's focus on expanding its service
offerings to businesses with VoIP services, data bundles, cloud
and managed services; data center co-location; fiber transport as
well as increasing distribution channels. Further, the company
has teamed up with LifeSize Communications, a division of
Logitech International SA
) to provide high definition (HD) video conferencing services to
customers using Windstream's IP networking solutions.
With the acquisition of the leading broadband service provider
PAETEC Holding Corp in December 2011, the company aims to gain
significant momentum in its enterprise market with nationwide
coverage of fiber network cables. The acquisition increased
opportunities in cloud computing and managed services. It also
attracted business customers across many locations. Windstream is
also planning to introduce customized business solutions that
will help improve its competitive position in the industry.
In the retail business, Windstream has re-branded its consumer
offerings with advanced Internet and entertainment services that
come with a Roku box, which includes several entertainment
applications to enhance pay TV service. The company's strategy of
bundling consumer services with high-speed Internet service is
advantageous for subscriber growth while reducing churn (the
tendency of customers to switch providers).
However, we remain on the sidelines after taking into account
competitive pressures from other players like
Alaska Communications Systems
), a highly leveraged balance sheet as well as continued
access-line erosion and diminishing wholesale business.
Currently, Windstream has a Zacks Rank #4 (Sell).