CenturyLink 2006 Annual Report Download - page 6

4 CE N T U R Y TE L 2 0 0 6 A N N U A L R E V I E W
At the end of 2006, CenturyTel’s fiber
network covered more than 29,000 route
miles. In addition, in December 2006, we
announced our intent to acquire Madison
River Communications Corp. Its high-quality
network provides service to more than
170,000 access lines which are 99 percent
broadband-enabled with greater than 30 per-
cent high-speed Internet penetration as of
year-end 2006. This acquisition also includes
access to a 2,400 route-mile fiber network that
is complementary to our existing operations.
Our fiber network – a very valuable asset –
enables us to further develop the broadband
services we offer our customers and gives us
significant control over our transport costs.
However, CenturyTel does more than
simply invest in network infrastructure – we
are also working to deliver new services that
improve the quality of life and contribute to
the economic development of the communi-
ties we serve. For example, in Vail, Colorado,
we launched a unique mesh-WiFi broadband
wireless system in November in partnership
with the town. This cutting-edge broadband
service offers speeds up to 100 Mbps to cus-
tomers in this popular ski destination and
confirms our ability to expand our addressable
market through strategic edge-out opportuni-
ties. We expect to deploy broadband wire-
less service in additional markets in 2007
and beyond.
We also partnered with a development
group and the city of Branson, Missouri, to
create the first “CenturyTel Smart Park,” which
will offer Metro Ethernet services with future
plans to provide managed data services to
the 350-acre Branson Commerce Park. We
will continue to seek innovative ways to
deploy applications and services over our
broadband networks and to partner with our
communities and others who, like CenturyTel,
are investing in the future of small cities and
rural America.
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Our employees are experienced, dedi-
cated and important assets of CenturyTel.
They understand our markets and are com-
mitted to providing excellent service to our
customers with a personal touch. We believe
this is a key differentiator for CenturyTel. Over
the last several years we have made significant
investments in both our back office systems
and our employee training. Our goal is to
continuously improve our service to make
it easier for every customer to do business
with CenturyTel.
Of course, an important part of a strong
customer relationship is providing the prod-
ucts and services customers want. CenturyTel
offers customers the ability to choose bundles
of discounted services that best meet their
needs with the convenience of one bill. We
believe the value of this approach to our cus-
tomers is reflected in the fact that approxi-
mately 28 percent of our customers were in
one of our Simple Choice™ bundles at the end
of 2006, an increase of over 45 percent from
year-end 2005. Providing choice, convenience
and value through bundles along with deliver-
ing consistent, excellent customer care are key
factors in our continuing efforts to build
strong, lasting customer relationships.
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        
In 2006, CenturyTel generated nearly
$841 million in cash flow from our operations.
We maintain a consistent focus on generating
strong cash flows as we continually work to
align our cost structure with our revenue
streams. We also utilize a disciplined capital
To Our Shareholders (continued)
Our employees are experienced, dedicated and
important assets of CenturyTel. They understand
our markets and are committed to providing
excellent service to our customers with a per-
sonal touch.
Capital Expenditures
in millions
386
02
378
03
385
04
415
05
314
06
Stockholders’ Equity
in millions
3,088
02
3,479
03
3,410
04
3,617
05
3,191
06
Cash Returned to Shareholders
Through Common Stock Repurchases
and Common Dividends
in millions
30
02
32
03
432
04
583
05
831
06