Instead of relying on the prevailing breeze to deliver
its services, Windstream makes use of more tangible
connections, such as fiber optic cable. The company
provides communications and technology services to business
and residential customers in the US through a network of fiber and
from 13 data centers. Business services include multi-site
networking, Internet access, cloud computing, colocation, online
backup, and other managed services. Along with Internet and voice
for its residential customers, it also offers video services.
Call connection and backhaul services are offered to wireless
Windstream's enterprise business segment provides 36% of revenue
with its consumer and Small Business - ILEC bringing in 28%. The
company gets 12% of revenue each from the carrier business and
regulatory and other revenue.
Windstream serves business and residential customers across 48
US states and the District of Columbia.
Sales and Marketing
The company's sales channels include online, national agents,
and telephone and direct sales representatives. It also sells from
it 27 retail stores as well as through third-party dealers who sell
directly to customers.
Windstream posted its third straight year of declining revenue,
but the 2015 revenue of $5.7 billion was just 1% less than 2014
revenue. Its businesses that used wireline phone service fell
during the year due to fewer customers and competition from other
companies and other forms of communication. The enterprise business
posted a 3% rise in revenue on more demand for data and integration
The company rebounded from a 2014 loss of $40 million with a $27
million profit in 2015. The big difference was a $199 million gain
on sale of data centers (14 data centers were sold to TierPoint)
and lower selling, general and administrative costs.
Cash flow from operations was $1 billion in 2015, compared to
$1.5 billion in 2014.
Windstream is betting big on broadband. The company is laying
fiber optic cable in parts of its service area, bringing high-speed
Internet service to enterprise, small business, and residential
With its Project Excel the company plans to upgrade and
modernize its broadband network by the end of 2016. By then 25
megabits per second (Mbps) speeds should be available to 54% and 50
Mbps speeds to 30%.
The company is expanding its fiber network in tier one locations
to its tier two and tier three markets. It also built up the 100
Gbps-capable long haul express network, adding route miles and
approximately 45 new access points.
To take advantage of high-speed Internet into the home,
Windstream started a video entertainment service. Called Kinetic,
it was available in Lincoln, Nebraska and Lexington, Kentucky in
2015 with plans to open in Sugar Land, Texas in 2016.
The company had more than $1 billion in capital expenditures in
2015 and expects another $800 million in capex for 2016. About $200
million will go to Project Excel.
In 2015 Windstream completed two transactions that will enable
it to place more focus and resources on its broadband strategy.
It completed the sale of 14 of its 27 data centers to TierPoint
for $575. TierPoint acquired data centers in Arkansas, Illinois,
Massachusetts, North Carolina, Pennsylvania, and Tennessee. As part
of the deal, Windstream and TierPoint can sell their respective
products and services to each other's prospective customers through
Windstream spun off its fiber and copper networks and other real
estate in an independent, publicly traded real estate investment
trust. The spin-off also included almost all of Windstream's
consumer wireline business.
Mergers and Acquisitions
In 2014 the company acquired Business Only Broadband,
Chicago-based fixed wireless provider with operations in Chicago,
New York City, northern New Jersey, and Milwaukee.