INTEGRA TELECOM OF MINNESOTA, INC.

  • Overview

Integra Telecom wants to be a key component of the US communications network. The facilities-based telecommunications carrier provides local and long-distance telephony and broadband Internet largely to small to midsized businesses, as well as some 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 through its Electric Lightwave division. The company serves the energy, food, broadcasting, and real estate industries, among others. Clients have included SolarWorld and the Red Cross.

Operations

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 more than 2,200 enterprise buildings and data centers. It delivers its high-bandwidth services to 400,000-plus businesses through its vast Ethernet-over-copper footprint. Integra operates subsidiary Electric Lightwave LLC, a wholesale carrier.

Integra in 2013 is consolidating its Portland-area offices and staff to a newly leased 85,000-sq.-ft. commercial office located in Vancouver, Washington. The facility, which is due for completion in mid-2014, will house key functions, including product development, engineering, technology, and customer service and support.

Financial Performance

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 $595 million in fiscal 2012 from $600 million in 2011 due to a decrease in other revenue. The company's recurring revenue remained flat during the reporting period.

Strategy

In 2013 Integra began providing data and communications services to the Bullitt Center, which is considered to be the most energy-efficient and environmentally sustainable office building in the world. The company is also Utah's approved vendor of Internet, Ethernet voice and data transport services for government and public institutions.

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 that year included installations in Phoenix and other parts of Arizona. 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.

Geographic Reach

Based in Oregon, 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.

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.

Company Ownership

Integra boasts several equity investors, including Searchlight Capital Partners, L.P.; Tennenbaum Capital Partners; funds managed by Farallon Capital Management LLC; and Warburg Pincus.

Company Background

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 resulted in profitable years in 2009 and 2010. As a result, Goldman Sachs became an investor in the company. In 2012 Searchlight Capital Partners, L.P. agreed to acquire all of the equity interests in Integra held by its largest shareholder, Goldman Sachs.

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INTEGRA TELECOM OF MINNESOTA, INC.


6160 Golden Hills Dr
Golden Valley, MN 55416-1020
Phone: 1 (952) 746-7100
Fax: 1 (952) 7467001
www.integratelecom.com

STATS


  • Employer Type: Unknown
  • Sales Engineer: Troy Anderson

Major Office Locations

  • Golden Valley, MN