Windstream Corporation (WIN) recently announced that it has joined hands with LifeSize Communications, a division of Logitech International SA (LOGI) to provide high definition (HD) video conferencing services. As per the agreement, LifeSize, which specializes in HD video communications, will offer video conferencing solutions to customers using Windstream's IP networking solutions.
Windstream expects the agreement to entail increased customer satisfaction as they will benefit from the latest technology solutions in enterprise segment. Given the ramp-up in mobile enterprise, customers are increasingly utilizing the remote conferencing technology. Windstream intends to tap this opportunity by providing its business customers with latest HD video conferencing solutions.
The company seeks to further expand in the enterprise market by enhancing its service offerings to businesses with VoIP services, data bundles, cloud and managed services, data center services, and fiber transport, and grow distribution channels. We believe that the company’s strategy of providing consumer voice service with high-speed Internet service will facilitate subscriber additions while reducing churn rates.
This apart, the company has further strengthened its position in the enterprise market with the acquisition of PAETEC Holding Corp. It has also increased the opportunities in cloud computing and managed services. Windstream is also planning to roll out customized business solutions that will help improve its competitive position in the industry against rivals like Frontier Communications (FTR).
To attract long-term enterprise customers, the company continues to invest in growth initiatives such as fiber-to-the-tower (FTTT) deployment, data center expansion and broadband network capability. With the rise in demand and contract wins, Windstream is ramping up its FTTT constructions.
Windstream expects additional 2,300 towers to be constructed within the next 12 month. With respect to broadband expansion, Windstream is focused on enhancing coverage and speed in under-served areas.
We are currently maintaining our long-term Neutral recommendation on Windstream supported by a Zacks #3 Rank (Hold).
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