CenturyLink 2006 Annual Report Download - page 4

2 CE N T U R Y TE L 2 0 0 6 A N N U A L R E V I E W
The past year was both challenging and rewarding for CenturyTel.
Several key forces continued to transform the communications industry
during 2006 – the deployment of Internet Protocol (IP) technologies,
new competitors offering a broader array of products and services, and
industry consolidation. At CenturyTel, we maintained our focus on creat-
ing the right solutions for our customers, making strategic investments in
our network assets and providing excellent customer care. This focus
enabled us to deliver solid financial results and increase value for our
shareholders, even in these challenging times.
In 2007, we will continue to adapt and realign our strategies to ensure
success as our industry evolves. We believe the next 18 to 24 months will
be a pivotal time for the communications industry and we are taking the
necessary steps to remain poised to respond to emerging market and
regulatory developments.

  
Advanced IP-based technologies have led
the transformation of the telecommunications
industry. The implementation of these tech-
nologies has already created more open net-
work architectures and has led to increased
competition for traditional voice and data
services. Customers in most markets now face
many choices in both service providers and
service packages. Service packages have grown
from a narrow offering of voice communica-
tions and related features to a broad array of
voice, data and entertainment services.
We believe IP technologies will signifi-
cantly mature over the next two years,
resulting in increased certainty regarding cost
economics and product viability. We expect
there will be significant advances in the devel-
opment of new IP-based services and wireless
broadband technologies such as WiFi and
WiMAX, expanding service offering opportuni-
ties and the size of our addressable market.
Cable television companies should substan-
tially complete their VoIP service roll-out,
enabling CenturyTel to better evaluate and
strengthen our competitive strategies. Finally,
we believe there will be solid progress in
regulatory policy concerning matters such as
To Our Shareholders
We expect there will be significant advances in
the development of new IP-based services and
wireless broadband technologies such as WiFi
and WiMAX, expanding service offering opportu-
nities and the size of our addressable market.
We believe the next 18 to 24 months will be a
pivotal time for the communications industry
and we are taking the necessary steps to remain
poised to respond to emerging market and
regulatory developments.
2006 HIGHLIGHTS
Net Cash Provided by
Operating Activities
in millions
793
02
1,068
03
956
04
965
05
841
06