CenturyLink, Inc (NYSE:CTL) the link to the rural markets
In expansion mode
CenturyLink, Inc (NYSE:CTL) is a prominent integrated –telecommunications service provider. The company will be accepting $54M from the FCC Connect America Fund in 2013. This amount will be used for funding the services in suburban-households in high-cost areas. This is the 2nd tranche of funds that the company is getting under the FCC’s CAF Phase 1. Three months ago, it was announced that the company was eligible to receive a minimum amount of $90M from the FCC in 2013.
Rural area target market
The combined value of over $108M will be invested by the company over the next 3 years to expand high-speed internet service to almost 92,000 customers in rural areas. The company is aiming at attaining a download speed of 4 MBps and the upload speed will be 1 MBps in 33/37 states where the company offers residential internet-services.
Grants such as these from the CAF are an important source of the company’s access-revenues. It has already received $35M in CAF Phase1. Despite the fact that CTL has received these grants, big players like Verizon and AT&T have so far restrained from accepting any grants from the body. The reason cited for the refusal was that there was a limitation of how these funds could be utilized and the reporting requirements were also very stringent. Now that the FCC has relaxed some of the existing norms, AT&T has agreed to accept some CAF funds.
About the company
CTL is an integrated-communications company. It is primarily involved in providing a variety of communications services to its business and residential customers. The company also caters to wholesale and governmental customers. The company provides services such as managed hosting, data, broadband, video and wireless services. In addition, it also provides network access, long-distance, local, public as well as private line access.