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CenturyLink Extends Coverage Footprint With Network Gateway

In a concerted effort to boost network coverage in the region, CenturyLink, Inc. CTL recently made a significant investment in the South Florida market to provide a new network gateway. The strategic decision will enable the company to better serve the surging demand for improved connectivity for enterprise services in the adjacent domestic markets and the neighboring Latin American countries.

The new network gateway will manage the flow of data traffic and Internet across the region with connection to three long-haul fiber routes and a nearby network access point, where different sections of the high-speed backbone network are connected. The gateway is also connected to nearby sub-sea landing stations for seamless access to sub-sea communications cables and a large colocation facility that serves Latin America.  

In order to strengthen its position in the market, CenturyLink is gradually shifting focus from integration to transformation efforts. The communications company intends to transform its business operations through product evolution and digitizing of customer interactions, which augurs well for revenues.

CenturyLink is focused on bringing improved operational efficiencies through a number of methods, including network simplification and rationalization. This should help the company improve its end-to-end provisioning time and drive standardization. Moreover, its strong network capabilities, integrated hosting and network solutions are likely to promote growth in the cloud business. Notably, the company views its managed and cloud services as a key differentiator from other players in the market, which should boost its top line.

CenturyLink has enhanced broadband speed with continuous investments in network development. The company is also investing in fiber-to-the-tower expansion and has expanded its fiber-based backhaul services. CenturyLink expects its Managed Office and Managed Enterprise solutions to continue to gain traction and drive revenue growth on the back of increasing demands from small and large business customers.

However, shares of this Zacks Rank #3 (Hold) stock have lost 38.1% over the past year against the industry’s rise of 8.4%, largely due to high debt.



Some better-ranked stocks in the industry are United States Cellular Corporation USM, sporting a Zacks Rank #1 (Strong Buy), and Gogo Inc. GOGO and T-Mobile US, Inc. TMUS, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

United States Cellular surpassed earnings estimates in each of the trailing four quarters, the average positive surprise being 79.3%.        
 
Gogo beat earnings estimates in each of the last four quarters, the average positive surprise being 38.7%.  
       
T-Mobile has a long-term earnings growth expectation of 13%. It beat earnings estimates in each of the preceding four quarters, the average surprise being 12.1%.

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