CenturyLink aims at 11m broadband connections by 2017

CenturyLink will be able to connect 11 million households and businesses to broadband at 40Mbps or faster by the end of 2017, up from 8.4 million now.

The company is focusing on improving network infrastructure by rolling out fast broadband and installing virtualisation, said Glen Post, the CEO and president of the US operator, describing the strategy as a “network first focus”.

CenturyLink reported flat revenues in the second quarter, down to $4.40 billion from $4.42 billion in the same period last year, but operating expenses were also down and as a result operating income increased to $650 million from $549 million in second quarter of 2015.

The company expects to nearly double its fibre broadband connections, using gigabit passive optical network (GPON) technology. Post said: “We ended the quarter with more than 8.4 million addressable households and businesses with 40Mbps or higher speeds, including 1.2 million GPON-enabled addressable units. We expect to reach 11 million 40Mbps or higher, including 2 million GPON-enabled addressable households and businesses by year-end 2017.”

Revenues from the legacy networks will continue to fall, said CenturyLink. “Business segment revenues were $2.60 billion, a decrease of 2.3% from second quarter 2015, primarily due to a decline in legacy revenues, which was partially offset by 8% growth in high-bandwidth data revenues.” In the consumer market, revenues were $1.49 billion, a decrease of 0.6% from second quarter 2015, primarily due to a decline in legacy voice revenues, the company added.

CenturyLink expects an increase in data integration revenues in the third quarter and continued growth in strategic revenues to be offset by an anticipated decline in legacy revenues, resulting in lower third quarter 2016 operating revenues compared to second quarter 2016.

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