The bilateral pact for the service providers' public IP networks will allow a stable and mutually cost-effective exchange of Internet traffic to cater to the rising use of the Internet. The deal should thereby improve the efficiency of traffic exchanged between their networks. The financial details of the deal have been, however, kept under wraps.
This deal marks the latest addition to the spree of agreements between top telecom operators and Internet transit providers following the net neutrality rules that were passed in February this year.
Earlier this year, Cogent had inked similar interconnection deals with U.S. telecom behemoths AT&T, Inc. T and Verizon Communications Inc. VZ as well as leading cable multi service operator (MSO) - Time Warner Cable Inc. TWC .
Meanwhile, by procuring additional capacity and new interconnection locations, CenturyLink will be able to enhance quality and provide reliable service to its customers.
CenturyLink reported strong results in third-quarter 2015, wherein both the top line and the bottom line outpaced the Zacks Consensus Estimate. The quarterly performance was buoyed by higher revenues from the acceptance and recognition of CAF phase II funds in the quarter.
Strength in high-speed Internet, high bandwidth data services, Prism TV, and managed hosting and cloud services continue to be the key growth drivers for the company.
CenturyLink has been focusing on the improvement of operating efficiencies through a number of methods including network simplification and rationalization. Therefore, the company has modernized its network by replacing ATM with IP technology that enables high broadband speeds, while adding network capacity to serve its growing customer base.
CenturyLink presently carries a Zacks Rank #3 (Hold).