Atlanta, GA (PRWEB) February 03, 2013
The Star Tribune in Minneapolis ran an article titled, CenturyLink is in a Race Against Time and Technology, on January 28, 2013. This was an excellent piece describing much of what the company is going through.
“CenturyLink is one of the big three local phone companies, or baby bells in the United States. The top three are AT&T, Verizon and CenturyLink. A few years ago CenturyLink acquired the number three baby bell Qwest.” Says Jeff Kagan Industry Analyst.
“Local phone service in the United States is riding the Wave that I frequently discuss. It grew through the 1990’s then started to fall. Competitors like cable television companies offering VoIP phone service and wireless competitors have been gobbling up market share. Today roughly one third of customers don’t use local phone service any longer. They use wireless and VoIP in ways that are reshaping the market.” Says Kagan.
“Yesterday all the local phone companies looked pretty much alike. However in the last few years we have seen that they are actually very different companies. Some are continuing to grow while others are struggling. AT&T and Verizon saw the threat and aggressively moved beyond plain old phone service, or POT’s. Today they are leaders in many areas like wireless, IPTV or Internet based television service, and other areas of growth.” Says Kagan.
“At the same time CenturyLink took a different path. Acquisitions of many smaller local phone companies and other business services gave them growth. That was good. However they are not really growing organically the way AT&T and Verizon are. That is a threat going forward.” According to Jeff Kagan.
“Can CenturyLink update their thinking and improve their performance at this point, is the question. CEO Glen Post has his hands full. They are a well run company and have been growing focused on the business side of the equation, and that is good, but what about the consumer side? Are they just saying goodbye to that segment as it shrinks or do they have a plan?” asks Jeff Kagan.
“CenturyLink remains profitable, but where is the growth going to come from in the future? They can continue to see growth, but they must take the growth path. And the growth path today looks much different than it did a few short years ago. Plus CenturyLink needs to refresh and modernize their brand. This is what AT&T did successfully a few short years ago. With CenturyLink, the brand is still strong, but is starting to get a little long in the tooth.” Says Jeff Kagan.
About Jeff Kagan
Jeff Kagan is an Industry Analyst who is regularly quoted by the media over the last 25 years.
He offers comment on tech news stories to reporters and journalists.
He has also been quoted as a Tech Analyst, Wireless Analyst, Telecom Analyst and Principal Analyst depending on the focus of the story.
He follows wireless, telecom, Internet, cable television and IPTV. He also follows the wider and more general consumer electronics and technology space.
Visit his website: at jeffKAGAN.com to learn more and for disclosures.
Reporters: Jeff Kagan sends comments by email to reporters and the media. If you would like to be added to this email list please send request by email.
Clients: He has worked with many companies over 25 years as consulting clients.
Contact: Jeff Kagan by email at jeff(at)jeffKAGAN(dot)com or by phone at 770-579-5810.
Kagan is an Analyst, Consultant, Columnist and Speaker.