Windstream Corporation
(
WIN
) recently announced that it has joined hands with LifeSize
Communications, a division of
Logitech International SA
(
LOGI
) to provide high definition (HD) video conferencing services. As
per the agreement, LifeSize, which specializes in HD video
communications, will offer video conferencing solutions to
customers using Windstream's IP networking solutions.
Windstream expects the agreement to entail increased customer
satisfaction as they will benefit from the latest technology
solutions in enterprise segment. Given the ramp-up in mobile
enterprise, customers are increasingly utilizing the remote
conferencing technology. Windstream intends to tap this opportunity
by providing its business customers with latest HD video
conferencing solutions.
The company seeks to further expand in the enterprise market by
enhancing its service offerings to businesses with VoIP services,
data bundles, cloud and managed services, data center services, and
fiber transport, and grow distribution channels. We believe that
the company's strategy of providing consumer voice service with
high-speed Internet service will facilitate subscriber additions
while reducing churn rates.
This apart, the company has further strengthened its position in
the enterprise market with the acquisition of PAETEC Holding Corp.
It has also increased the opportunities in cloud computing and
managed services. Windstream is also planning to roll out
customized business solutions that will help improve its
competitive position in the industry against rivals like
Frontier Communications
(
FTR
).
To attract long-term enterprise customers, the company continues
to invest in growth initiatives such as fiber-to-the-tower (FTTT)
deployment, data center expansion and broadband network capability.
With the rise in demand and contract wins, Windstream is ramping up
its FTTT constructions.
Windstream expects additional 2,300 towers to be constructed
within the next 12 month. With respect to broadband expansion,
Windstream is focused on enhancing coverage and speed in
under-served areas.
We are currently maintaining our long-term Neutral
recommendation on Windstream supported by a Zacks #3 Rank
(Hold).
FRONTIER COMMUN (FTR): Free Stock Analysis
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LOGITECH INTL (LOGI): Free Stock Analysis
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WINDSTREAM CORP (WIN): Free Stock Analysis
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