CenturyLink 2015 Annual Report Download - page 191
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Product and Service Categories
We categorize our products, services and revenues among the following four categories:
•Strategic services, which include primarily high-speed Internet, MPLS (which is a data networking
technology that can deliver the quality of service required to support real-time voice and video), private
line (including special access), Ethernet, colocation, hosting (including cloud hosting and managed
hosting), video (including our facilities-based video services, which we now offer in 16 markets), VoIP
and Verizon Wireless and other ancillary services;
•Legacy services, which include primarily local and long-distance voice services, including the sale of
UNEs, switched access and Integrated Services Digital Network (“ISDN”) services (which use regular
telephone lines to support voice, video and data applications);
•Data integration, which includes the sale of telecommunications equipment located on customers’
premises and related professional services, such as network management, installation and maintenance
of data equipment and building of proprietary fiber-optic broadband networks for our governmental
and business customers; and
•Other operating revenues, which consist primarily of CAF support payments, USF support payments
and USF surcharges. We receive federal support payments from both CAF Phase 1 and CAF Phase 2
programs, and support payments from both federal and state USF programs. These support payments
are government subsidies designed to reimburse us for various costs related to certain
telecommunications services, including the costs of deploying, maintaining and operating voice and
high-speed Internet infrastructure in high-cost rural areas where we are not able to recover our costs
from our customers. USF surcharges are the amounts we collect based on specific items we list on our
customers’ invoices to fund the FCC’s universal service programs. We also generate other operating
revenues from leasing and subleasing of space in our office buildings, warehouses and other properties.
Because we centrally manage the activities that generate these other operating revenues, these revenues
are not included in our segment revenues.
B-83