CenturyLink ‘will cut capex’ after Level 3 takeover, says CFO
CenturyLink is to likely to reduce its capital expenditure significantly thanks to synergies with Level 3, which the company is buying for $34 billion.
CenturyLink has already predicted its 2017 capex will be $2.6 billion, and Level 3 spent $1.3 billion in 2016, implying a total of nearly $4 billion. But CenturyLink CFO Stewart Ewing is expecting to cut 10% off that, he told a Deutsche Bank conference this week.
The $2.6 billion figure was already down on the previous rate of $3 billion a year. Ewing said that synergies with Level 3’s existing network will allow the company to cut capex further.
He pointed out that Level 3 still had many unused conduits across the US from when it built out its network in the early years of the century.