CenturyLink Augments Network Footprint in Latin America
To accelerate digital transformation of enterprises, CenturyLink, Inc. CTL augmented its footprint in Latin America with a new fiber optic route between Colombia and Ecuador. The Monroe, LA-based communications company’s fiber and IP-based network capacity along with its financial strength positions it well to support customers and boost shareholders’ value in the long term.
CenturyLink is focused on the execution of its strategies that hinges around four key areas — investing in growth through product and network expansions, delivering enhanced customer experience across business, transforming operations to improve efficiency and employee experience as well as deleveraging to strengthen its balance sheet. With this fiber route, several businesses, Internet service providers and local governments will have a first-hand access to CenturyLink’s advanced network infrastructure.
Backed by 600 gigabits of network capacity, the 800-kilometer fiber optic route will connect the cities of Cali and Quito, located in Colombia and Ecuador respectively. This new infrastructure expansion and network coverage will provide corporate customers with streamlined broadband connectivity as well as provide diversified fiber routes for service contingencies.
Markedly, the company has a network presence of more than 26,000 kilometers across Latin America. Incorporated with the South American Crossing subsea infrastructure, the route will enable an absolute redundant network connectivity between the two countries. Further, the tech giant intends to expand its network infrastructure with the deployment of a 1000-kilometer fiber route that will connect cities like Quevedo, Santo Domingo and Ambato, among others, to address the burgeoning networking requirements of enterprise customers in Ecuador.
Earlier this month, CenturyLink completed the construction of a fiber-optic project that started in 2019, connecting more than 14,000 additional homes in Boulder, CO. This project provides fast and reliable Fiber-to-the-Home (FTTH) Internet service with gigabit speeds to residents and enterprises. The company’s Fiber Gigabit enables people to work from home and provides video entertainment. It enabled nearly 300,000 homes and small businesses with faster Internet speeds in 2019, which includes select areas of Spokane, WA; and Tucson, AZ. The company anticipates bringing gigabit speeds to 400,000 additional households and enterprises in various cities, including Denver, CO; Idaho Falls, ID; Omaha, NE; and Phoenix, AZ, among others.
CenturyLink’s focus on transforming its business operations through product evolution and digitizing of customer interaction bodes well for future revenue growth. The company introduced Dynamic Connections as part of its Cloud Connect portfolio and announced the global expansion of its SD-WAN solutions, while extending its platform to cloud service and software-as-a-service providers. Also, it is working with customers to enable their 5G roadmaps while extending its fiber footprint. The company intends to expand its network infrastructure in 20 cities this year, as it helps customers meet higher demand for high-speed connectivity.
Moreover, the company is investing in fiber-to-the-tower expansion and extended its fiber-based backhaul services. CenturyLink expects its Managed Office and Managed Enterprise Solutions to continue gaining traction and drive revenue growth on the back of increasing demands from small and large business customers. The company’s broadband expansion goal will help it benefit from the growing demand.
CenturyLink currently carries a Zacks Rank #3 (Hold). The stock has lost 9.8% against the industry’s growth of 0.4% in the past year.
Some better-ranked stocks in the broader industry are ADTRAN, Inc. ADTN, Calix, Inc. CALX and Telenav, Inc. TNAV. While ADTRAN and Calix sport a Zacks Rank #1 (Strong Buy), Telenav carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
ADTRAN’s bottom line surpassed the Zacks Consensus Estimate thrice in the last four quarters. The company has a trailing four-quarter positive earnings surprise of 8.5%, on average.
Calix’s bottom line surpassed the Zacks Consensus Estimate in the last four quarters. The company has a trailing four-quarter positive earnings surprise of 43%, on average.
Telenav’s bottom line surpassed the Zacks Consensus Estimate thrice in the last four quarters. The company has a trailing four-quarter positive earnings surprise of 108.3%, on average.
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