) has announced a partnership with Avaya to expand its managed
Unified Communications (UC). Avaya, a U.S.-based provider of
business communications and collaboration systems, will provide
Windstream's UC services its suite of communication solutions -
Aura - that is complemented by the cloud platform of
The collaboration will provide users easy access with advanced
UC functionality such as mobile and desktop integration.
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. Apart from Avaya, the
company has also teamed up with LifeSize Communications, a
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 Dec 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 improve its competitive position.
In the retail business, Windstream has re-branded its consumer
offerings with advanced Internet and entertainment services that
come with a Roku box, including several entertainment
applications to enhance pay TV service. The company's strategy of
bundling consumer services with high-speed Internet service aids
subscriber growth and at the same time reduces churn (the
tendency of customers to switch providers).
We remain optimistic on the company's performance based on a
lucrative bundle of service offerings, an expanding customer base
and various strategic measures. The company's strong operational
base is expected to drive growth in business and consumer
channels with synergies from the acquisitions.
However, we remain concerned about competitive pressure from
other industry players such as
), constant upgrades in the technological scenario as well as
continued access-line erosion.
Currently, Windstream has a Zacks Rank #3 (Hold).
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