CenturyLink 2009 Annual Report Download - page 4

To Our Shareholders
With the July 1, 2009, merger between CenturyTel, Inc.
and Embarq Corporation, we achieved a new milestone
in our long history of growth through acquisition. This
acquisition, the largest in CenturyTel’s history, positioned
us as a communications industry leader with unique
advantages: a network of extensive scale and scope,
a strong portfolio of advanced communications and
entertainment services, a very strong financial position
and a talented team with a clear customer focus. Taken
together, these advantages form a solid foundation
for growth for our combined company, which began
operations in 2009 under the CenturyLink brand.
I want to thank our shareholders for recognizing the
potential of this merger and for approving the transac-
tion. I also want to thank our employees, whose hard
work, sacrifice, skill and dedication have enabled us to
accomplish so much over the past year. Thanks to their
efforts, we completed the Embarq acquisition, launched
the CenturyLink brand, successfully managed the first
two quarters of integration activities and delivered 2009
results that demonstrate the potential of the merger to
grow and transform our business.
It’s never easy to merge two large organizations and
certainly not during times of such great economic chal-
lenge. The success we achieved in 2009 demonstrates
what is possible for CenturyLink as one of the premier
providers of voice, broadband and video services in the
United States.
2009 Results Reflect Potential of Merger
The Embarq acquisition created a leading communica-
tions services provider with approximately 7 million
access lines, 2.2 million broadband customers and
535,000 video subscribers in 33 states at year-end 2009.
More significant than the increase in the scale of our
business is the value we expect the merger to create.
We expect the transaction to be accretive to free cash
flow per share in the first full year after closing and to
create $475 million in operating expense synergies, reve-
nue opportunities and capital investment savings within
the first three years after completing the transaction.
Our Network:
Unique, Valuable
Our long-haul network now
connects 90 percent of our
service areas, reducing
costs and creating revenue
opportunities.
We expanded our high-
speed optical network by
approximately 10,000 miles.
At year-end 2009, 89 per-
cent of our access lines
were broadband-enabled.
More than 50 percent of
these broadband-enabled
lines are capable of speeds
of 6 Mbps or higher.
90%10,000
Stronger Connected
2
Based on access lines, CenturyLink is the fourth largest
telecommunications company in the United States.
4th Largest 6 Mbps
Shareholders
To Our
MILES
On July 1, 2009, CenturyTel completed its acquisition of Embarq Corporation, creating one of the leading communi-
cations companies in the United States. Simultaneously, the company began operating under the name CenturyLink
(NYSE: CTL).
CenturyLink is a leading provider of high-quality voice, broadband and video services over its advanced communica-
tions networks to consumers and businesses in 33 states. CenturyLink, headquartered in Monroe, Louisiana, is
an S&P 500 Company and expects to be listed in the Fortune 500 list of America’s largest corporations. For more
information on CenturyLink, visit www.centurylink.com.