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About Qwest Communications International Inc.

CenturyLink provides cyber links throughout the country on one of the longest fiber networks in the US. 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 business, residential, and government clients. The company is the one of the largest US wireline telecom companies, with about 450,000 route miles of fiber optic cable globally, and it's the incumbent local carrier in about 37 states. It spends approximately $3.6 billion a year on capital projects to build out its network.

Operations

The company has five reportable segments that provides products and services to its customers and channel partners. This include enterprise segment (accounts nearly 30% of revenue), consumer segment (accounts about one-fourth), wholesale segment (accounts nearly 20%), international and global accounts management (accounts about 15%), and small and medium business which accounts the remaining revenue.

While most of its customized customer interactions involve multiple integrated technologies and services, CenturyLink organizes its products and services according to the core technologies that drive them.

This includes following categories: IP and data services, transport and infrastructure services, voice and collaboration services, and IT and managed services.

IP and Data Services (accounts 30% of revenue) provides VPN Data Network. Ethernet, Internet Protocol (IP), and content delivery services provide to its customers with the ability to meet their streaming video and far-reaching digital content distribution needs through Content Delivery Network (CDN) services and Vyvx Broadcast Solutions. Transport and Infrastructure (nearly 30%) offers wavelength that deliver high bandwidth optical networks, dark fiber, private line, colocation and data center services, and professional services. Voice and Collaboration (nearly 20%) offers voice that includes primary rate interface service, local inbound service, switched one-plus, toll free, long distance and international services, and voice over IP (VoIP) and its IT and Managed Services (not more than 5%). The remaining revenue comes from broadband, voice, regulatory revenue, and other services.

It conducts most of its operations under the brand "CenturyLink". The satellite television service is offered on a co-branded basis under the "DIRECTV".

Geographic Reach

CenturyLink operates a terrestrial and subsea fiber optic long-haul network throughout North America, Europe, Latin America and Asia Pacific, which connects to its metropolitan fiber network operations. The company, based in Monroe, Louisiana, also provide services in over 60 countries, with most of the revenue being derived in the US.

Sales and Marketing

CenturyLink reaches business customers through offices in major and secondary markets in the US and bigger markets in some countries. Marketing to residential customers includes direct sales representatives, inbound call centers, telemarketing, and third parties, including retailers, satellite television providers, door to door sales agents, and digital marketing firms. It supports distribution with digital marketing, direct mail, bill inserts, newspaper and television advertising, website promotions, public relations activities and sponsorship of community events and sports venues.

The company's advertising expense was $62 million, $98 million and $218 million for the FY 2019, 2018 and 2017, respectively.

Financial Performance

The company's consolidated revenue decreased by $1.0 billion, or 4%, for the year ended December 31, 2019 as compared to the year ended December 31, 2018 largely due to continued declines in voice revenue as customers transition to other voice and non-voice services, their de-emphasis of low margin equipment sales within Transport and Infrastructure, churn in legacy contracts within IT and Managed Services, and the de-recognition of their prior failed-sale leaseback, partially offset by growth in their IP and Data services and Broadband revenue.

The company lost $5.3 billion in 2019, falling further from $1.7 billion loss in 2018. It had higher expenses in 2018, including a $503 million tax payment.

CenturyLink had $1.7 billion in cash and equivalents in 2019 compared to $518 million in 2018. Operations generated $6.9 billion in 2018, while investing activities used $3.6 billion and financial activities used $1.9 billion.

Strategy

CenturyLink incur capital expenditures on an ongoing basis to expand and improve its service offerings, enhance and modernize the company's networks and compete effectively in their markets. The company evaluates capital expenditure projects based on a variety of factors, including expected strategic impacts (such as forecasted impact on revenue growth, productivity, expenses, service levels and customer retention) and expected return on investment. The amount of capital investment is influenced by, among other things, demand for the company's services and products, cash flow generated by operating activities, cash required for other purposes and regulatory considerations (such as CAF Phase II infrastructure buildout requirements).

CentryLink's capital expenditures continue to be focused on enhancing network operating efficiencies and supporting new service developments.

Qwest Communications International Inc.

100 Centurylink Dr
Monroe, LA 71203-2041
Phone: 1 (318) 388-9000

Firm Stats

Employer Type: Publicly Owned
President: Joann Cooper
Engineer: Patrick Meier
Director, Account Consultant: Melissa Small
Employees (This Location): 1,000
Employees (All Locations): 24,800

Major Office Locations

Monroe, LA

Other Locations

Phoenix, AZ
Winslow, AZ
Boulder, CO
Denver, CO
Loveland, CO
Westminster, CO
Tampa, FL
Carrollton, GA
Forest Park, GA
Kansas City, MO
Saint Louis, MO
Gallup, NM
Philadelphia, PA
Nashville, TN
El Paso, TX
Salt Lake City, UT
Reston, VA
Bellevue, WA