CenturyLink 2008 Annual Report Download - page 6

PAGE 4
To Our Shareholders continued...
We continue to roll out advanced communications services to
the rural and small-to-mid-size cities we serve. For example, we
are delivering new residential broadband services such as digital
video, or IPTV, over our combined ber and copper networks.
We have successful IPTV operations in La Crosse, Wisconsin,
and Columbia, Missouri, and we are evaluating further expansion
of our digital video service. We are also evaluating the viability of
oering a basic IPTV service in markets with broadband speeds
of approximately 10 Mbps, and expect to conduct a trial of this
service in select markets during 2009. In business markets, we
continue to expand our Ethernet oerings, dedicated Internet
access, and managed services for enterprise customers. We also
continue to develop competitive voice and data solutions for our
small oce/home oce customers.
In 2008, we successfully acquired 69 licenses in the 700 MHz
auction that cover 53 percent of our local exchange areas and
overlap approximately 4,500 miles of our ber transport net-
work. This purchase will allow us the opportunity to provide
wireless broadband services to our customers in the future. We
continue to evaluate the deployment of broadband wireless data
and voice services over this strategic asset utilizing Long-Term
Evolution (“LTE”) technology. We also continue to look for
opportunities to expand our spectrum position relative to our
core wireline footprint both today and after the close of the
EMBARQ transaction.
The array of broadband and emerging wideband applications
continues to multiply, and includes video, music, social networking
and other lifestyle applications, as well as business applications
that enable more collaboration and data sharing. Our broadband
deployment experience, our “one network” architecture com-
prised of approximately 38,000 route-miles of ber, and potential
wireless broadband options allow us to accommodate the growing
demand for bandwidth.
Winning and Retaining Customers
In 2008, we intensied our focus on winning and retaining cus-
tomers. We are committed to delivering advanced communica-
tions services to customers with a personal touch, and we believe
it’s that personal touch that sets us apart.
We continue to make investments to strengthen our personal
touch with a compelling local market presence. One of these
eorts involves upgrading bill payment locations to Customer
Experience Centers. These Centers will oer customers the
opportunity to experience rsthand the full range of CenturyTel
products and services. Trained local service and sales employees
will be available to demonstrate services, explain bundle options
and answer questions. We also are working to make it easier for
customers to do business with CenturyTel by expanding our
hours of operation and reducing the time it takes to install new
service or repair existing service.
All our personal touch eorts are focused on strengthening our
customer relationships. These strong relationships increase the
lifetime value of each customer. When many of our customers
were squeezed by high gas and food prices in 2008, we worked
with them to manage their services to a level they could aord.
After the tough times pass, CenturyTel will have even greater
opportunity to oer customers advanced services delivered with
the same personal touch.
The Financial Strength to Survive and Grow
Our conservative nancial philosophy has positioned us well to
weather the nancial crisis that our economy is experiencing
today. We have a track record of eectively managing our costs
and ensuring that our operations remain ecient and competi-
tive. As a result, our operating margins are solid, and our free
cash ows are strong, providing us the exibility to invest in our
business and return cash to our shareholders. In fact, for the
“I believe we enter 2009 as a stronger and more proficient provider of
advanced communications services. Our experienced management
team has worked well together for many years, and built a track record
of superior shareholder returns. With our planned network investments
and increasingly sophisticated marketing and customer care capabili-
ties, we look forward to continued industry-leading performance. ”