Profile: Windstream Corp (WIN.O)

Windstream Corporation (Windstream), incorporated on March 9, 2006, is a provider of advanced communications and technology solutions, including managed services and cloud computing, to businesses nationwide. In addition to business services, the Company offers broadband, voice and video services to consumers in primarily rural markets. It has operations in 48 states and the District of Columbia, a local and long-haul fiber network spanning approximately 115,000 miles, a robust business sales division and 21 data centers offering managed services and cloud computing. Windstream’s owned local networks consist of central office digital switches, routers, loop carriers and virtual and physical colocations interconnected with fiber, copper and microwaved facilities. A mix of fiber optic and copper facilities connect its customers with the core network. As of December 31, 2011, Windstream operates 13 domestically located, geographically dispersed sales and service call centers. In December 2011, the Company announced that it has completed its acquisition of PAETEC Holding Corp.

Business

The Company’s business data services include multi-site networking, high-speed Internet access services and data centers. Windstream’s advanced network provides private, secure multi-site connections for large businesses with multiple locations. The Company provides broadband Internet access, including high-speed T1, Internet and Ethernet Internet options. It also offers high-speed broadband Internet access for connections at speeds up to 24 megabits per second. Windstream’s data centers offer cloud computing, colocation, dedicated server, managed services and disaster recovery solutions.

Carrier services provide network bandwidth to other telecommunications carriers. These include special access services, which provide access and network transport services to end users, and Ethernet transport up to 10 Gigabits per second. Carrier services also include fiber-to-the-tower connections. Business voice services consist of basic telephone services, including voice, long-distance and related features. In addition, Windstream sells customized communications equipment systems. It also offers ongoing maintenance plans to support those systems.

Consumer

The Company’s consumer broadband services include high-speed Internet access, Internet security services and online backup services. It offers high-speed Internet access with speeds up to 24 megabits per second. Windstream’s security Suite offers customers critical Internet security services, including anti-virus protection, spyware blocking, file back up and restoration. Its online backup service allows consumers to back up and restore important files through the Internet. In addition, Windstream’s backup services provide consumers to store and share files on network-based storage devices. Files can be accessed from any computer with an Internet connection. Consumer voice services include basic local telephone services, features and long-distance services. Features include call waiting, caller identification, call forwarding and others. Windstream also offers a range of long distance plans, including rate plans based on minutes of use, flexible or unlimited long distance calling services.

The Company offers consumer video services primarily through a relationship with Dish Network LLC (Dish Network). The Company also owns and operates cable television franchises in some of its service areas. Windstream’s video offerings allow it to provide bundled services to its consumer base. Windstream sells certain equipment to support its consumer high-speed Internet and voice offerings, including broadband modems, home networking gateways and personal computers. It also sells home phones to support voice services.

Wholesale

Windstream provides switched access services to long-distance companies and other local exchange carriers for access to its network in connection with the completion of long-distance calls. The Company also receives compensation from wireless and other local exchange carriers for the use of its facilities. Universal Service Fund (USF) revenues are also included in its wholesale revenues. USF revenues are collected from its customers. In addition, Windstream supplements its business services with wholesale offerings of voice and data carrier services to other communications providers and to larger-scale purchasers of network capacity.