CenturyLink 2013 Annual Report Download - page 4

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Demand for network services and IT solutions is dynamic and growing, as businesses
increasingly view these technologies as strategic enablers of growth and improved
performance. Seeking greater agility and flexibility, businesses of all sizes are demanding
more standardized, modular solutions and emerging “as-a-service” offerings. Similarly,
consumers are demanding more reliable, higher-bandwidth, broadband-enabled commu-
nications and entertainment services.
CenturyLink possesses the high-bandwidth infrastructure, comprehensive service portfolio
and attentive customer support to meet the growing demands of our customers. In 2013,
we strengthened our competitive position by enhancing our network and data center assets,
expanding our cloud capabilities and enlarging our sales organizations. We also took aggressive
steps to adapt to market conditions, including acquiring two leading-edge cloud-based compa-
nies, AppFog, Inc. and Tier 3, Inc., and launching our first 1 gigabit per second (Gbps) fiber ser-
vice. These investments significantly enhanced our cloud-services platform and demonstrated
the power of fiber-enabled networks to drive customer demand.
Businesses and consumers responded positively to our efforts in 2013, as we generated strong
growth in our strategic revenues and broadband subscriber base. While our data hosting results
fell short of our expectations, that business did see growth during the year. These results rein-
force our confidence that execution of our network, data hosting and consumer broadband
growth strategies put us on track for improved revenue performance in 2014 and beyond. As we
move into 2014, we remain focused on enabling our customers to take advantage of an expand-
ing array of products and services to strengthen their businesses and improve their lives.
Strengthening Businesses
CenturyLink’s global network, hosting and managed services enable businesses to operate
with greater agility and reliability. Our business customers are responding positively to the
value of our consolidated service offerings. Coupled with our attentive support, customers
can focus on what matters most – growing their businesses.
In 2013, for the second year running, our IP-enabled network revenues increased more than
four percent, driven principally by Ethernet and Multiprotocol Label Switching (MPLS) growth.
We also increased the sale of data hosting services to our existing network customers at a
healthy pace throughout the year, and we expect continued momentum in 2014. We connected
our first 100 Gbps Optical Wavelength service customer in 2013 and gained our first state
government cloud-services customer.
We also introduced a new IT service and consulting product offering in 2013. Customers have
responded positively to this offering, looking to CenturyLink to assist them with their conversion
to cloud-enabled network environments. In addition to offering revenue opportunities in its
own right, this line of business enables us to truly partner with our customers’ key network
and IT decision-makers to solve their full range of network and IT needs.
To
Our
Shareholders
Glen F. Post, III
Chief Executive Officer and President