About McLeodusa Incorporated

Instead of relying on the prevailing breeze to deliver its services, Windstream makes use of more tangible connections, such as fiber optics and copper wire. The company provides communications and technology services to business and residential customers in the US through a network of fiber and from 27 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 phone companies and wireless carriers.


Windstream's enterprise and small business segment provides 51% of revenue with its consumer unit bringing in 22% of revenue and the carrier business accounting for 13%. The remainder is from wholesale, other, and product sales.

Geographic Reach

Windstream serves business and residential customers across 47 US states and the District of Columbia.

Sales and Marketing

The company has about 200 business sales offices throughout the US and more than 2,300 sales employees focused on meeting the needs of the company's business customers. Windstream's consumer sales and marketing strategy is focused on driving top line revenue performance through bundled product sales and value-added account revenue growth. The company's advertising expenses totaled $96.8 million, $79.3 million, and $99.5 million in 2014, 2013, and 2012, respectively.

Financial Performance

After peaking in 2012, Windstream's revenues decreased in 2013 (down 8%) and in 2014 (down 3%). The 2014 drop was evident across all the company's segments, none of which improved over the previous year. Enterprise and small business was near even, ticking down 0.19% while the consumer business dropped nearly 2% and carrier was off about 6%. The company attributed lower revenue to voice line losses, declining demand for dedicated copper-based circuits, and the impact of intercarrier compensation reform.

Windstream's bottom line showed a loss of about $40 million in 2014 after posting a profit of $241 million in 2013. Higher expenses helped drive the company to the 2014 loss. Cash flow from operations nudged 3% lower in 2014 from 2013.


Technology advances have made its consumer business prospects increasingly difficult, as wireless carriers have siphoned off wireline customers and cable companies have been able to effectively woo voice and Internet customers. The expanding need for data services from the enterprise customer side has become the company's new focus.

The company in 2015 spun off its fiber, copper, and other assets into an independent, publicly traded real estate investment trust called CS&L. The move is to help the company speed up investments in its network and reduce debt. Windstream leases the infrastructure assets it formerly owned from CS&L.

To reach new customers, Windstream has received funding through the American Recovery and Reinvestment Act of 2009 and the Connect American Fund to expand broadband services to rural areas with little or no broadband. The work enables Windstream to build and maintain its broadband network while bringing services to underserved areas.

In 2014 the company opened new data centers in Chicago and in Charlotte, North Carolina.

To cut costs, in 2014 Windstream reduced its workforce by 400 to increase operational efficiency and produce annualized savings of $20 million.

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.

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McLeodusa Incorporated

6400 C St Sw
Cedar Rapids, IA 52404-7463
Phone: 1 (319) 364-0000
Fax: 1 (319) 298-7008


  • Employer Type: Public
  • Ceo: Royce Holland
  • Marketing Director: John Kelly
  • Pres: Michael McDaniel

Major Office Locations

  • Cedar Rapids, IA

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