A Cautionary Tale? CenturyLink CFO on Telecom Industry Economics

For every dollar that it loses in legacy revenues, CenturyLink must generate two additional revenue dollars in growth areas in order to maintain its earnings level, said the company’s CFO Stewart Ewing. Considering that other incumbent local carriers are also grappling with how to replace declining high-margin voice service revenues, that revelation has potentially broad implications for telecom industry economics — particularly for companies that, like CenturyLink, lack a mobile business. Ewing revealed some additional information about the company’s video plans, which he said include a skinny bundle package. That seems to be a key trend among telecommunication companies of late. Verizon was the first telecom company to offer a pared down video programming package at a reduced cost, but others – including Cincinnati Bell and now CenturyLink – have followed.