CenturyLink 2011 Annual Report Download - page 6

We have successfully positioned CenturyLink for growth by expanding the scale and scope
of our business through recent acquisitions, transforming ourselves into a leading global
provider of communications, entertainment and data hosting services. We have enhanced
our broadband network capabilities; expanded our CenturyLink™ Prism™ TV service;
invested in our fiber-to-the-tower initiative, which enables us to participate in the growing
demand for wireless broadband; and established ourselves as a global leader in managed
hosting and cloud computing services. Our products and services are delivering more value
than ever to more customers than ever, improving the lives of people across the country
and around the world.
In 2011, we completed the Embarq integration and closed the Qwest acquisition, creating the
third largest telecommunications company in the country. We also took an important strategic
step in our transformation, acquiring Savvis, Inc., a global leader in cloud infrastructure and
hosted IT solutions for enterprises. By combining Savvis’ proven solutions with CenturyLink’s
extensive network assets, we have created a premier service provider with global scale in the
high-growth sector of colocation, managed hosting and cloud services. We ended 2011 with
49 data centers and two million square feet of gross raised floor space. With a superb suite of
Savvis products combined with the reliability and security of our network, our customers can
harness the latest advances in technology to grow and improve their businesses.
With the Qwest and Savvis acquisitions and the on-plan integration of Embarq, CenturyLink
ended 2011 a very different company. In just five years, our annual revenues increased from
about $2.45 billion to more than a pro forma $18 billion. Business customers, with their growing
need for advanced broadband and data hosting solutions, now represent nearly 60 percent of
our revenues. Our domestic fiber network covers approximately 210,000 route-miles, offering
access to numerous new market opportunities, and we now have a global reach to our business.
Our local market position, especially in the markets we acquired, continues to improve, thanks
to the proven effectiveness of our local operating model. Most important, we ended 2011 with a
strong asset portfolio and the capabilities we need to capitalize on long-term growth opportunities.
Taking advantage of these opportunities requires focused execution, which CenturyLink
employees continue to deliver. Our Unifying Principles create a strong foundation for our culture
and guide our employees in their interactions with each other and with customers. As a result
of our employees’ hard work and commitment, we have successfully integrated multiple
acquisitions while maintaining our culture, customer focus and strategic direction. We thank
our employees, and we are confident their continued focus on serving our customers will enable
us to capitalize on the promising opportunities we see in the years ahead.
2011: Transforming our business
Our focus in 2011 remained on our customers and being the premier telecommunications
service provider in the markets we serve. We made excellent progress last year, while continuing
to execute our integration plans and maintain a strong financial position.
In our Regional Markets Group segment, we realized 4.5 percent growth in high-speed
Internet subscribers in 2011 over pro forma year-end 2010 and expanded our fiber-to-the-node
(FTTN) infrastructure by approximately 1.3 million living units, ending the year with 6.1 million
FTTN-enabled living units. We also continued to expand the footprint and subscriber base of our
CenturyLink™ Prism™ TV service, with eight markets in total and the potential to reach more
To Our Stockholders
ENHANCING
•฀ More฀than฀90฀percent฀of฀access฀lines฀
are broadband-enabled.
•฀ 50฀percent฀of฀our฀broadband-enabled฀
access lines are capable of speeds of
10 Mbps or higher.
•฀ 6.1฀million฀living฀units฀have฀been฀enabled฀
through our fiber-to-the-node initiative.
•฀ Our฀high-demand,฀next-generation฀
IP services include high-speed Internet,
Ethernet, CenturyLink™ Prism™ T V,
MPLS and VoIP.
Opportunity Multiplied
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