Integra Telecom wants to be a key component of the US communications network. The facilities-based telecommunications carrier provides local and long-distance telephone and Internet largely to small to midsized businesses, as well as some government and residential customers in 35 metropolitan areas in about a dozen mostly western states. Its enterprise data services include managed network services, data and server colocation, and hosted cloud computing services. Integra also sells its products to other carriers on a wholesale basis. The company serves the energy, food, broadcasting, and real estate industries, among others.
One of the largest facilities-based providers of communication and networking services in the western US, Integra owns and operates an enterprise-class network that comprises a 5,000-mile long-haul fiber-optic network, 3,000 miles of metropolitan fiber, and a nationwide IP/MPLS network. The company's fiber network connects directly to nearly 2,600 enterprise buildings and data centers. It delivers its high-bandwidth services to 400,000-plus businesses through its vast Ethernet-over-copper footprint.
Based in Washington, Integra canvases some 35 metropolitan areas across about a dozen western states, including Arizona, California, Colorado, Minnesota, Montana, Nevada, North Dakota, Oregon, Utah, and Washington. The company moved its headquarters from Oregon to Washington in 2013.
Sales and Marketing
Integra counts more than 85,000 customers. Serving such customers as the Red Cross and SolarWorld, Integra caters to a variety of markets such as real estate, energy, food, and broadcasting. In 2012 Integra brought on new customers such as Digital Realty and Oregon Health Network.
The company generates most of its revenue from recurring revenue. This comprises private line revenue, data and Internet access services, and local telephone services. Its private line revenue consists of point-to-point transport circuits to business and carrier customers who use metropolitan access and long-haul networks. Integra's revenue dropped 1% to $591 million in 2013 from $595 million in 2012 due to a decrease in other revenue. The company's recurring revenue grew 1% during the reporting period.
Integra has allotted about 75% of its capital spending on its enterprise services and wholesale segments as it build them up to counter the losses the company is suffering as landline telephone sales shrinks. Its network expansion efforts in 2013 included installations in Minneapolis and Billings, Montana. Also, in 2012, Integra introduced fiber-based wavelength services to enable metro-area and long-haul private networking for clients with a need for high-bandwidth network connections between their facilities. As part of this package, the company offers disaster recovery, optical storage, and other features.
This continues Integra's ongoing effort to expand and diversify its commercial business, which began with the 2010 introduction of an online data storage service aimed at businesses without the necessary IT resources to host their own storage systems. As part of this, the company began to offer managed secure data storage, backup, and access services from its data center.
In 2014 it landed a government contract potentially worth millions. The five-year General Services Administration contract provides for voice, data, and managed and cloud services to all federal agencies in Colorado, Montana, North Dakota, South Dakota, Utah, and Wyoming -- home to more than 1,200 eligible government customer accounts.
Mergers and Acquisitions
In 2014 the company bought ProTel NetWorks, a Utah-based managed services provider. ProTel NetWorks counts about 600 small business customers (fewer than 100 employees) that use Mitel products.
Integra was co-founded in 1996 by director and former CEO Dudley Smith. Unprofitable Integra reached an agreement with lenders in 2009 to enact a financial restructuring that reduced its debt burden from $1.3 billion to about $600 million and brought in Goldman Sachs as an investor. In 2012 Searchlight Capital Partners, L.P. bought out Goldman Sach's equity stake.