CenturyLink would like to be your communications hook-up for more than the next 100 years. Historically a regional wireline local and long-distance telephone provider, it's connecting with the times by transforming into a broadband and network services provider for residential, business, and government clients. The company is the third-largest US wireline telecom company by total access lines, and is the incumbent local carrier in 37 states, though three-quarters of its lines are in just a dozen, mostly in the West and Midwest. Additionally, CenturyLink provides wireless service through Verizon, and paid television service through its own Prism TV (in selected markets) with satellite provider DIRECTV.
CenturyLink operates two segments: Business and Consumer.
The Business segment, 65% of sales, consists of private line, broadband, Ethernet, MPLS, Voice over Internet Protocol, network management services, colocation, managed hosting and cloud hosting services for enterprise, wholesale, and governmental customers, including other communication providers.
The Consumer segment, 35% of sales, offers broadband, wireless, and video services, including Prism TV services. It also offers local and long-distance service.
CenturyLink operates almost 74% of its total access lines in portions of Arizona, Colorado, Florida, Iowa, Minnesota, Missouri, New Mexico, Nevada, North Carolina, Oregon, Utah, and Washington.
It also provides local service in parts of Alabama, Arkansas, California, Georgia, Idaho, Illinois, Indiana, Kansas, Louisiana, Ohio, Michigan, Mississippi, Montana, Nebraska, New Jersey, North Dakota, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Wisconsin, and Wyoming,
The company operates nearly 58 data centers throughout North America, Europe, and Asia.
CenturyLink's revenue dropped from about $18.1 billion in 2013 to $18.03 billion in 2014 on decreases in both business segments. Loss of access lines as traditional wirelines are replaced by wireless phones helped cut Business revenue by about 1% in 2014. On the Consumer side revenue fell 1% in 2014 on losses in local and long distance service.
With net income, a $1.1 billion changed turned 2013's $239 loss into 2014's $772 million profit. The company had lower operating costs in 2014. Also, the 2013 results felt the impact of a goodwill impairment and a litigation settlement. Cash flow from operations dropped to $5.2 billion in 2014 from $5.56 billion in 2013.
CenturyLink is expanding its services, particularly those oriented toward cloud computing. In 2015, the company made its public cloud service available in the Asia Pacific region through its date center in Singapore. The company also opened a cloud development center in Seattle to work with developers.
Mergers and Acquisition
In 2014, CenturyLink acquired Cognilytics, a provider of advanced predictive analytics and Big Data to mid-sized and large enterprises. The acquisition will allow CenturyLink to offer more services that help customers collect and analyze data.