CenturyLink 2004 Annual Report Download - page 6

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invest more than $350 million in 2005 to
further strengthen our broadband platform
and Internet Protocol networking capabilities.
Addressing competition is also about
identifying increasingly diverse revenue
opportunities and having a more efficient
operating model. Our LightCore subsidiary
delivers on both counts as we utilize its
8,700 route mile fiber network to carry
CenturyTel’s internal voice and data traffic
at lower costs and to generate revenues
through the transmission of other carriers’
traffic. We expect LightCore’s revenue
growth to continue, and we are considering
other ways to utilize its network to further
reduce our costs and support our video and
other broadband initiatives.
In early 2005, we agreed to purchase
metro fiber assets and customer accounts in
16 markets, from KMC Telecom Holdings, Inc.
for $65 million cash. These assets will provide
CenturyTel with the opportunity to expand
relationships with wholesale customers as well
as serve enterprise customers in these markets.
Finally, CenturyTel is financially strong.
Our customers tell us they prefer to do
business with a stable, financially healthy
company. CenturyTel has a strong balance
sheet and continues to generate strong cash
flows that provide us the financial flexibility
to invest in new products and services,
respond to competitive pressures and take
advantage of growth opportunities.
CenturyTel Is a Strong
Voice on Regulatory Issues
Emerging competitive challenges are
accompanied by regulatory uncertainty on
issues including how carriers should
compensate each other for the use of their
networks, the funding and distribution of
universal service funds (USF), the regulatory
treatment of emerging technologies such as
VoIP and switched digital video and the
disparate regulatory treatment of different
types of service providers.
CenturyTel is a strong advocate of regulatory
and legislative policies that enhance the
continued availability of advanced commu-
nications services to non-urban areas. While
there is a lot of discussion about USF,
intercarrier compensation and VoIP, we believe
a few simple principles should guide any
regulatory or legislative policy.
We believe there must be a mechanism to
ensure the continued availability of high-
quality, advanced communications services
to areas in which the cost of service is too
high to be borne entirely by customers. The
national communications network is made
stronger and more valuable through the
universal availability of communications
services, and it is sound public policy to support
the economic development of non-urban
areas. We also believe companies who receive
USF should live up to coverage and service
standards that are consistent with the
universal service principles. In short, we
Broadband Deployment
(% of total access lines)
61
34
00 01 02 03 04
59 63
71
DSL Connections
(in thousands)
5
25
00 01 02 03 04
53
83
14 3
Long Distance Lines
(in thousands)
434
565
00 01 02 03 04
799
932
1,068
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